The Backlash Cometh
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Mon May-30-11 12:09 PM
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Need help understanding the concept of "Turnovers" for Associations. Re: In Florida |
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I have a rough understanding of Turnovers when the property goes from the ownership of the developer, to the homeowners. But I was hoping people would confirm or correct that understanding, and hopefully, refer me to the right Florida Statute.
When a turnover takes place, and it claims in the document that the Turnover has taken place and there are no longer different Classes of owners within the community, does that mean that EVERYTHING within the plat has been transferred to the homeowners? Including common ground and roads within the plat?
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DURHAM D
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Mon May-30-11 12:20 PM
Response to Original message |
1. Instead of the Statutes - begin with the governing documents |
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Edited on Mon May-30-11 12:21 PM by DURHAM D
pertaining to a specific property.
Begin with Articles of Incorporation, then Declaration, and then ByLaws (if any). The Declaration will indicate the process by which the Declarant is no longer in control. It will be number of years or percentage of units/lots/homes sold.
Is this a condominium or what?
Sometimes after the "Declarant Period" the common elements and streets have not yet been properly transferred to the Association (or the town). Several years ago I consulted with an association where the developer was attempting to sale the common property to the association for $32,000. I told them that the Developer (who just happened to be president of the homebuilders association) had broken the law by not turning it over at the proper time. I advised them to get an attorney and sue his ass and for god's sake don't pay him anything.
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The Backlash Cometh
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Mon May-30-11 12:32 PM
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2. That would be the normal process. |
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Edited on Mon May-30-11 12:34 PM by The Backlash Cometh
Except that a bankruptcy occurred and the turnover took place in a supplement to the covenants. It is clearly stated, though in Florida, things are as clear as mud when you have good ole boys and crooked lawyers about. That's why I'm looking for legal clarity in the Statutes.
On edit: I may have a similar situation as the one you describe, only more devious.
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DURHAM D
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Mon May-30-11 12:38 PM
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3. Describe the property. Single family? Condos? Townhomes? |
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Edited on Mon May-30-11 12:40 PM by DURHAM D
Are you a current owner?
Is the Developer bankrupt or is the Association bankrupt?
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The Backlash Cometh
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Mon May-30-11 01:06 PM
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6. Too much personal information there and I can't PM you. |
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I'm just looking for a legal definition. For now, we'll say it's a single family HOA situation. Property is clearly in the hands of the HOA right now. I'm just digging up history on past misdeeds.
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quaker bill
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Mon May-30-11 12:44 PM
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I deal with this sort of thing pretty regularly for a living in FL.
There are some unusual arrangements going on currently because of numerous bankruptcies. It could be on the up and up, or not.
Having the Association represented by legal counsel is almost never a bad idea in these situations.
I might have contacts and resources that could assist.
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The Backlash Cometh
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Mon May-30-11 01:04 PM
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5. Oh, this goes way above the ordinary corrupt situation. |
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Edited on Mon May-30-11 01:22 PM by The Backlash Cometh
This makes the ordinary corruption in Florida look like school boys antics.
I just need to find a legal definition for a Turnover. Too many dirty hands in this story to go beyond that for now.
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quaker bill
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Mon May-30-11 06:30 PM
Response to Reply #5 |
7. Then the advice of a lawyer would be a good choice |
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Having unravelled a good number of these, I find sound legal advice invaluable. Florida Law is more than a bit complex in these matters. It is not what it might seem reading the Statutes, lawyers are useful because through precedent in a court of law, they get to understand what the terms actually mean.
Turnover in general happens when the developer sells a particular number of lots or the "magic lot" depending on how the covenants are structured. In the case of a percentage, turnover just happens when the threshold is reached, usually this is accompanied by some sort of board organization meeting where things are formalized and a new report is filed with the Division of Corporations listing the new officers.
In some cases there is a "magic lot" (my term), that is vested with more votes than all the other lots combined. This is usually where the sales center or office is located. When sold, the developer loses control of those votes and the lot changes membership type, so it has only one vote going forward. Defacto turnover occurs at that point because the developer is generally no longer a member of the corporation.
Common areas are generally dedicated to the HOA by plat. Plats must be recorded before the sale of the first lot, so generally the "common areas" are HOA property from the moment lots go up for sale. Some developers back this up with a quit-claim deed, others don't, it generally does not matter.
On occasion, when things go really wacky, a real estate predator will snag valuable common areas on a tax deed. This can happen during a period around a bankruptcy when no one is sure who owes the taxes. I have seen them held hostage.
Alternate means that title may pass during a bankruptcy can include a certificate of title, awarded by a judge.
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