New condo - changes made by builder

[amberalia]

What is the name of your state? Texas

My husband and I recently purchased a condo in a newly constructed area of dallas. We have been here for 6 months and were the first owners to move into the unit. We received notice today that the builder has decided to 'lease' all the units rather than con't to sell them. They even have offered to buy our unit back at the purchase price. We have a home owners association. The complex is only about 33% occupied. I am curious if you have any feedback as to whether the builder can make this decision on their own. We have read the HOA documents and can only find that it takes a majority to desolve the HOA. We signed HOA documents which outlined the budgets - this included all the units being involved in an HOA.

There were no meetings held with any of us prior to this decision. We were notified by a letter in the mail after the decision had been made.

Obviously, our concern is the value of our new property and feeling that the pretenses in which we bought are condo were changed only 6 months after the units were built.

Do you think that they have a legal standing to make this decision without involving the current residents at all?

Thanks-
Amber

 

[nextwife]

POster should review their condo docs. Personally, I woul;d never buy any condo that did not restrict the percentage of units that could be non-owner occupied. There may be restrictions on rental- and on developer trying to change the type of deveopment. Condo plat would already be of record. I'd also consult a RE attorney.

Check also with the municipality. Often, such projects are approved under the terms of a Developer's agreement. The city may have approved owner-occupied condos for this location, but woul;d not have approved rental units there. The Dept of City Development should be consulted to see if such a midstream change by the developer is allowable. Rental units in some areas are restricted in number differently than are homeowner units. There are property tax consequences to the city - they would WANT to know. They approved construction of condo units- not a multifamily rental.

 

[asylum23]

Do you think that they have a legal standing to make this decision without involving the current residents at all?

They probably can make this decision w/out asking owners since you're such a minority at 33%. At our condos the CC&R's were written that the HOA was turned over to the owners at 75%. When we bought we had to sign a contract saying it would be our primary residence and we could not rent it out. A few months later the idiot builders decided they could make more $$$ selling to landlords and started with that, now making the total at 66% rentals here.