It is important to determine whether the common elements and open space in your community have been conveyed to your association. Fox example, when overlooked, issues may arise with respect to the taxation of common element property. Common element property is taxed in a homeowners' association by including the interest of each unit owner in the common element property (by virtue of their membership in the association) as part of the determination of the assessed value of each unit. We have encountered separate tax bills for common element property in various communities as a result of the failure of the developer to properly convey the common element property to the homeowners' association.
The conveyance of common elements and open space to the homeowners' association typically takes place during your community's transition process from the developer to the unit owner controlled homeowners' association. A review of the final recorded development plans, tax records and recorder of deeds records is necessary to determine whether the developer has properly conveyed the appropriate real estate parcels to the association as required under the association's governing documents.
Our firm has extensive experience in providing associations with the information they need to successfully navigate through the transition process. Our involvement in the transition process generally includes working directly with the Board of Directors or its duly designated transition committee, the association's engineers, accountants and the local municipality to complete the transition process and to protect the association's rights with respect to any potential claims in this regard.
If you have any questions or concerns in connection with the association's ownership of its common elements or transition in general, please feel free to contact us.