What is the name of your state? NC
Purchased a new Hirise condo about 2 yrs ago. First unit conveyed 2 1/2 yrs ago. 50% of units sold and he just set up board. Just had first HO meeting.
Developer/Declarant says he just has to make up any short fall in budget and when he sells his last unit, he gets to decide how much is left for reserves.
As I read NC condominium act all "unit owners" (as defined as declorant or owner) are responcible for dues on basis of ownership.
From NC condominuim act:
Definitions:
(26) "Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation.
He states that reserves just sit in the bank not earing anything and people prefer to get assessments.
He has only given last years financials. But, by my analsys we are short about
$200K if he is responsible for putting in the same as us. We all put in 2 months dues for working capital (about 100K so far and 100K to come from unsold units) we also came under budget by 40K Its interesting that the budget calls for 40k to go to reserves for hallway capet replacemnt and common area upfit. We were given a balance sheet with -$43,000 equity.
Are we getting the shaft??
Purchased a new Hirise condo about 2 yrs ago. First unit conveyed 2 1/2 yrs ago. 50% of units sold and he just set up board. Just had first HO meeting.
Developer/Declarant says he just has to make up any short fall in budget and when he sells his last unit, he gets to decide how much is left for reserves.
As I read NC condominium act all "unit owners" (as defined as declorant or owner) are responcible for dues on basis of ownership.
From NC condominuim act:
Definitions:
(26) "Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation.
He states that reserves just sit in the bank not earing anything and people prefer to get assessments.
He has only given last years financials. But, by my analsys we are short about
$200K if he is responsible for putting in the same as us. We all put in 2 months dues for working capital (about 100K so far and 100K to come from unsold units) we also came under budget by 40K Its interesting that the budget calls for 40k to go to reserves for hallway capet replacemnt and common area upfit. We were given a balance sheet with -$43,000 equity.
Are we getting the shaft??