Table of Contents
What is a condo developer?
A developer is defined in the Condominium Property Act (the Act) as a person who sells condominium units to the public the first time that the unit is sold on the market. The term applies to builders, as well as, to people who convert existing buildings into condominiums.
How does a developer create a condominium?
Condominiums are created by filing a legal document known as a condominium declaration which vests ownership of the land in a condominium owners association and creates the three types of ownership interests listed above.
What is an American condo?
The term ‘condominium’ or ‘condo’ is used in North America and some other English speaking areas such as Australia, to refer to a building in which individual units are separately owned, but common areas are owned jointly. Condominiums are distinguished from apartments, in that the flats are owned rather than leased.
What is a HOA turnover meeting?
HOA Turnover Meeting The official transition of the HOA from the developer to the homeowners takes place during the turnover meeting. During this time, the developer will deliver all pertinent documents to the homeowners (see HOA transition checklist below) and the homeowners will elect its new board.
What is an association fee?
What Are HOA Fees? Simply put, a homeowners association fee is money typically paid monthly by homeowners living within the HOA community to help maintain all properties, amenities and common areas within the association.
How is an association taxed?
In General – Associations are exempt from federal income taxation under Section 501(c)(6) of the Internal Revenue Code, and therefore pay no tax on dues, program income or investment income.
What is a declarant in an HOA?
Legally defined, a declarant is “the person making a statement, usually written and signed by that person, under ‘penalty of perjury’ pursuant to the laws of the state in which the statement, called a declaration, is made.” Declarants are used when the first owners of the HOA, typically the builders or developers, are …