Developer Turnover
The Supreme Court of South Carolina recently held, in Concerned Dunes West Residents, Inc. v. Georgia-Pacific Corporation, 349 S.C. 251, 562 S.E.2d 633 (2002), a developer is under fiduciary obligation to turn over common areas and roads to the association in good repair. In this case, a developer failed to make repairs to the roads of an association, which the developer knew to be damaged, before turning them over to the association. The association filed a claim against the developer to recover the costs of the repairs. The court held a developer that fails to make the necessary repairs to common areas will be responsible for bringing the common areas and roads up to standard.
In Layden v. City of Rutland, 732 A.2d 894 (Vt. 1999), the Vermont Supreme Court held that undeveloped land still owned by the developer is not considered to be common areas subject to property taxes for which the members of the association are responsible for paying. The court indicated the developer was responsible for paying the taxes on the undeveloped portions of land.
