Q: In Georgia, when can a builder turn over the HOA to the property owners? Is there a minimum number of homes sold?
The builder has closed on 5 houses of a projected 35 home development with another 5 or so in construction and having contracts. There’s over 20 lots that no development has occurred yet. I’m told they want to turn over the HOA now to owners. When asked about maintenance on a common area (playground), they’ve responded they don’t have enough money to do the maintenance. If they don’t have money for maintenance, how are homeowners supposed to maintain common areas until enough homes have been closed on?
A: Okay, you are in a situation which cannot be adequately explained here. Anytime HOA's are involved, the key to everything lies in the written declarations and other documents which will be filed with the Clerk of Superior Court of the particular county of reference. You are going to want to locate a good real property (real estate) attorney in the particular county and speak with him/her regarding your questions. The attorney can then do the necessary research in the deed records at the courthouse to piece all the documents (which sometimes is similar to putting together a jigsaw puzzle) together to find exactly what can and cannot happen with regard to the the developer's intentions. There is no quick or easy answer to your situation. This happens all over the state, and each situation is different due to the documents on record. Yes, there are laws which address certain aspects of HOA vs. homeowners vs. developers, etc. The laws may not be broken in some situations, but violations of the recorded documents might exist.
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