Is previous owner entitled to refund?

[rk2010]

What is the name of your state (only U.S. law)? Washington

We purchased a home from a builder a few years back. There was a unique water system designed for our neighorhood- the cost of which was rolled into the purchase of each lot and then maintained by monthly assessments. When we purchased the home the lot had been purchased by the builder 2 1/2 years prior, and those monthly assessments were paid for that time period by the builder as well.

Since that time our HOA has decided that this water system is too complicated- the developer is teaming up with our local city water and building a whole new system. In order to appease the current owners, the developers are refunding the initial cost of the system from each lot as well as the monthly assessments that have been paid.

It is our impression that when we purchased this lot we purchased all rights to it, and the builder gave up all rights to a refund upon transfer of title. The developer is saying otherwise- that the refund goes to the builder. Are there any laws regarding this? We are located in Washington State.

Thank you...

 

[LdiJ]

What is the name of your state (only U.S. law)? Washington

We purchased a home from a builder a few years back. There was a unique water system designed for our neighorhood- the cost of which was rolled into the purchase of each lot and then maintained by monthly assessments. When we purchased the home the lot had been purchased by the builder 2 1/2 years prior, and those monthly assessments were paid for that time period by the builder as well.

Since that time our HOA has decided that this water system is too complicated- the developer is teaming up with our local city water and building a whole new system. In order to appease the current owners, the developers are refunding the initial cost of the system from each lot as well as the monthly assessments that have been paid.

It is our impression that when we purchased this lot we purchased all rights to it, and the builder gave up all rights to a refund upon transfer of title. The developer is saying otherwise- that the refund goes to the builder. Are there any laws regarding this? We are located in Washington State.

Thank you...

The builder would have rolled the cost of the water system into the purchase price of the house, therefore I cannot see how the builder would be entitled to the refund. How much money are we talking about?

 

[rk2010]

Thanks for your reply- roughly 25k. That is our impression too, however they (the developers) are being a little difficult.

 

[LdiJ]

Thanks for your reply- roughly 25k. That is our impression too, however they (the developers) are being a little difficult.

Well...I did think of one thing after I though about it for a while. If the builder is going to be replacing the water system at no cost to the homeowners, then it might be valid for the builder to get the part of the refund that is specific to the replacement of the water system, but not for the monthly payments the homeowners had to make, only for those payments that the builder had to make.

Are you able to be specific as to how this whole thing is supposed to work? You should end up "whole" in the end. You should end up with a workable water system and a refund for what YOU paid in monthly assessments. You should not end up with 25k, plus your monthly assessments, plus a new water system that you did not have to pay for.

Now, that doesn't mean that the builder and developer are not playing games to attempt to mitigate their costs for this whole mess, but it doesn't automatically mean that they are either.

If you can explain the details more thoroughly, please do so. If you cannot, then you need to be asking more questions from the sources involved.