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Where does condo association's collection of developers funds go?

Posted on Fri, May 06, 2011 @ 07:59 AM
  
  
  
  
  
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Our condo association has finally collected approxitmately $1,000 from developer which is the net of unpaid assessments on his units minus his 'out of pocket' expenses to our building, all from previous years. How do we count this money? Does it go into our regular operating account or do we put it into our Reserves fund? He is current on his units to-date.

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IMO, it would go to the account where the delinquency is recorded, most likely assessments and the money would be deposited into the operating account. His individual account should have an account balance reflecting these unpaid assessments.
Posted @ Friday, May 06, 2011 9:48 AM by mary
One should refer to the docs. Docs are often written so that the developer covers any shortfalls of operating capital prior to turnover. However the developer may have each unit set up as a property and would be required to pay fees as would any other owner. 
 
To complicate matters, unbuilt units may have different stipulations per the docs.
Posted @ Friday, May 06, 2011 12:08 PM by Condo Bob
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