Mooresville & Lake Norman NC Subdvision Q&A Series Part 3 - What You Need To Know About Homeowners Associations

What is a subdivision developer's role in a mandatory association and does the developer pay dues, charges and assessments?

In North Carolina the law states that the developer of any real estate project is the owner of all unsold lots or units in the project. The developer controls the votes & therefore the association itself as long as the developer owns the majority of the properties. That gives the developer or their successors the right to amend the covenants and restrictions as long as the changes are in accordance with the legal documents creating the association. However, the developer has the fiduciary responsibility to act in good faith, in accordance with the law, and in the best interest of the association.

North Carolina law also adopted the North Carolina Planned Community Act in 1999 and, under this act, developers cannot exempt themselves from paying their share of the common expenses. There are a few exemptions to this Act so just give me a call for more info at 704-363-6946 for complete info!

What happens if the developer or owner in the community fails to pay funds claimed by the association?

The association must use the rights granted in the covenants and restrictions to collect the funds. In any development subject to the Planned Community Act, liens and foreclosures are permitted.

Fore more information on this or any Mooresville NC Real Estate matter just visit our site  for all Mooresville and Lake Norman NC Real Estate by clicking on the link!