Declarant Control in Condominiums and Planned Communities

Question:  I am asking this question as a homeowner and I am also a director.  I have not been tasked by the board to ask this question. When does Declarant control cease when written under condominium law and later considered to be a “Planned Community”?  The subdivision was recorded late 1986.  It consists of vacant lots and the CC&R’s were written under condominium law.  Planned community statutes did not exist.  A.R.S. 33-1243 is clear that declarant loses control upon conveyance of 75% of the lots, regardless of what the documents state.  Our CC&R’s state that declarant has control over the architecture committee until 90% of lots are conveyed and to amend the CC&R’s upon concurrence with Declarant.  A.R.S for Planned Communities does not include anything about “declarant control”.  Planned community statutes did not exist until 1994.  Evidently we are a Planned Community.

Answer: You cannot be a Condominium and a Planned Community at the same time.  Therefore the Condo CC&R’s had to be dissolved and the Planned Community CC&R’s recorded against the property.  If all you had were vacant lots, than the declarant must have owned it in its entirety.

No, the Planned Community Act does not address when the declarant must turn over the association to the homeowners

Parker Finch Management is the HOA community manager for over 50 associations in Arizona

blog comments powered by Disqus