Legal Question in Real Estate Law in Arizona

Hello,

We live in a 20 unit non rental condominium community. After moving in we were shocked to find out that there were 5 rentals, now 6 because 1 unit was given back.

The developer/builder continues to rent /lease.

The CCRs are clear no rental hardship unless baord approved, for not more than 2 years. He has been renting them out since 2005? Builder is on the HOA board, he and 2 other owners on board

agreed in the past to allow him to do this to help out HOA fees. We now have had tunrnover

and there are 10 new homeowners here.

The property management company (manager) was trying to help enforce the CCRs and the builder told the management company we only needed them to do accounting. He also said we do not need another management company?

The Builder states that he wants to sell his units but does not list them with a realtor that we can find, does not advertise in the normal course of business for market value?

We need to file a Lawsuit against the HOA Baord and the Developer/builder.

There has been a 75 percent turnover, the builder claims there was a turnover/transition, we have not seen any signed documents?

The CCRs are not being followed and we would like the builder to get out?

What need s to happen to start this process?

Thank you for your time!


Asked on 7/17/12, 9:51 am

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

I could not answer your questions without first reviewing the documents, the CC&Rs;, the rules and your purchase contract, plus the minutes of the meetings of the HOA Board of Directors.

In general, the developer/builder maintains control of the project until most of the units are sold and the management of the HOA is turned over to the residents. Clearly, the issues you have raised are commonplace in the metro area, and in this economic downturn. You may get your issues addressed by hiring an attorney, because then the builder knows that you could bring suit if they fail to deal with you honestly and fairly, and that there is someone who knows how to read the documents and enforce them. If that fails, an informal approach, then you may bring suit against the builder, the Board members, etc.. It would be helpful if you could get other homeowners, in the same circumstances as you, to join with you in taking action, and then you would have someone to share the costs and legal fees, which can be quite substantial.

Read more
Answered on 7/17/12, 10:23 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Arizona