Development Issues – Key Stakeholders Rights and Responsibilities
A Developer’s Duties
Land developers starting residential subdivisions that have covenants, conditions & restrictions (CC&Rs) and a homeowners association (HOA) have extraordinary influence over the long-term value of the communities they create. Because the CC&Rs often give developers almost total control over a subdivision, the law imposes certain duties on them. Among these are the duty to manage and maintain common property and the duty to enforce the CC&Rs.
Duty to Manage and Maintain
No one wants to buy a home only to see the neighborhood fall into disrepair. Accordingly, developers have a duty to use reasonable care in managing and maintaining property that the neighborhood shares—whether a park, pool, clubhouse, or roads. During this period, the developer has the responsibility of ensuring that the subdivision remains in good repair as a reasonable and prudent person would under the circumstances. If not, he or she may face liability to the HOA or homeowners.
Duty to Enforce
Just the same, people generally want their neighborhood to keep its character. Although we most often expect HOAs to fill this role, the law puts this duty on the developer because he or she often has almost total control until the development is finally complete. This does not mean, however, that a developer cannot react to market conditions by intentionally and substantially changing significant aspects of a development; but it does mean the developer should not ignore a homeowner who violates the CC&Rs.
The skillful attorneys at Mesch Clark Rothschild have extensive experience handling all types of real estate issues, including homeowners association and development disputes. We are also seasoned mediators and arbiters. Call our law office in Tucson at (520) 624-8886.