Developer Transition
Hampton & Associates’ Developer Transition Program will ensure your association and its homeowners are properly protected when the developer turns control of the association over to the homeowners. A developer's failure to follow certain steps during transition can literally cost an association hundreds of thousands of dollars. If your association takes certain steps when the homeowners take control of the Board of Directors, it can avoid serious legal problems and save the association, and the homeowners, a tremendous amount of money.
We understand that during the period of developer transition, an association may be under funded and left without sufficient funds. We work within the association’s financial constraints to ensure that the association receives the necessary and appropriate legal advice. When the homeowners take control of the Board of Directors, we are embarking on what we expect will be a long-term relationship with the association. Thus, we go the extra mile to ensure that your association gets started in the right direction.
A developer's failure to follow certain steps during transition can literally cost an association hundreds of thousands of dollars. For example, we represented an association in a dispute with a developer regarding whether the association or the developer’s successor was responsible for paying certain fees to maintain a golf course and to provide security and maintenance within the association. We were successful in obtaining an injunction against the developer’s successor requiring it to cover such costs, which, over the years, will save the association, and the homeowners, close to one million dollars. However, if the issues involved in this case had been addressed at the time the developer turned control of the association over to the Board, the association may have been saved the trouble and expense of proceeding with the lengthy litigation.
In another matter, we represented an association that was about to have a major portion of its common area sold in order to satisfy a $400,000.00 judgment against the association. Although we were successful in having the judgment set aside by the District Court, the association incurred significant legal fees, and the matter was appealed to the Nevada Supreme Court. The entire matter could have been avoided had the association taken certain steps at the time the developer turned over control of the Board to the homeowners.
There are many problems your association can avoid by ensuring that certain steps are taken at the time the developer turns control of the association over to the homeowners. Contact our office to ensure your association avoids these problems.
Our Developer Transition Program ensures the following:
- The Association’s reserve fund is adequately funded by the Developer at the time control is turned over to the homeowners.
- The developer turns over control of the Board of Directors over to the homeowners at the time required by law. (If you are a homeowner who believes the developer has failed to give the homeowners control of the Board, please contact our offices).
- The developer provides the association all documents required by law.
- All contracts entered into by the association during developer control are reviewed to ensure the developer fairly and properly represented the association.
- All Common Area property is conveyed to the association.
- An appropriate written record is created at the time the homeowners take control of the Board of Directors in order to protect the legal rights of the association.
- The new Board of Directors comprised of homeowners is properly advised as to the procedures they must follow when operating the association.
- All insurance policies are reviewed to ensure the individual Board of Directors and the association is properly insured.
- All financial records are reviewed to ensure the association has been properly funded and to ensure the financial records are in order.
- The developer and the association take other critical steps to protect the association in the future.