What is the name of your state? WI
I currently live in what is referred to as a "villa". It is a zero lot line home which means we own the exterior of our unit as well as the lot. We pay a monthly "maintenance" fee that allows us to use the clubhouse, provides lawn care, and also provides snow removal. We do not have an association right now.
Last night, the developer called a meeting and presented a proposal to us. He wants to change the convenants so that all new units would be condo's not villas. He wants us to form 2 associations, one for the villa owners and one for the condo owners. He stated that he would lease the clubhouse back to us for less than fair market value. He also stated that we would not have to pay more than the current fee although he did not have a legal document ready for us to review. Most of his comments stared with "Our intentions are...."
My questions are: "Why is he doing this?" Obviously, he gains something by switching to condo's vs a zero lot line units. Correct? Will we lose something? Will our home value be depreciated? What do we gain/lose by forming an association? Can we force him to have legal binding documents available for us before "voting" on the issue? What are our rights as owners?
I don't want to sound like a pessimist but the developer is a business man and is out to make money like any business person would. I find it hard to believe that he is going to do things for us out of the "goodness of his heart". Any thoughts, suggestions, comments, etc. would be greatly appreciated as none of use are real estate attorneys.
Thank You!
Stephanie
I currently live in what is referred to as a "villa". It is a zero lot line home which means we own the exterior of our unit as well as the lot. We pay a monthly "maintenance" fee that allows us to use the clubhouse, provides lawn care, and also provides snow removal. We do not have an association right now.
Last night, the developer called a meeting and presented a proposal to us. He wants to change the convenants so that all new units would be condo's not villas. He wants us to form 2 associations, one for the villa owners and one for the condo owners. He stated that he would lease the clubhouse back to us for less than fair market value. He also stated that we would not have to pay more than the current fee although he did not have a legal document ready for us to review. Most of his comments stared with "Our intentions are...."
My questions are: "Why is he doing this?" Obviously, he gains something by switching to condo's vs a zero lot line units. Correct? Will we lose something? Will our home value be depreciated? What do we gain/lose by forming an association? Can we force him to have legal binding documents available for us before "voting" on the issue? What are our rights as owners?
I don't want to sound like a pessimist but the developer is a business man and is out to make money like any business person would. I find it hard to believe that he is going to do things for us out of the "goodness of his heart". Any thoughts, suggestions, comments, etc. would be greatly appreciated as none of use are real estate attorneys.
Thank You!
Stephanie