Index of Terms (non-exhaustive)

developer duties -generally

In Davencourt v. Davencourt, the Utah Supreme Court held that until the developer relinquishes control of the association to the members, the developer owes the following duties to the association and its members:

  1. to use reasonable care and prudence in managing and maintaining the common property;
  2. to establish a sound fiscal basis for the association by imposing and collecting assessments and establishing reserves for the maintenance and replacement of common property;
  3. to disclose the amount by which the developer is providing or subsidizing services that the association is or will be obligated to provide;
  4. to maintain records and to account for the financial affairs of the association from its inception;
  5. to comply with and enforce the terms of the governing documents, including design controls, land-use restrictions, and the payment of assessments;
  6. to disclose all material facts and circumstances affecting the condition of the property that the association is responsible for maintaining; and
  7. to disclose all material facts and circumstances affecting the financial condition of the association, including the interest of the developer and the developer's affiliates in any contract, lease, or other agreement entered into by the association.

Additionally, in community associations:

  • During the period of administrative control, for any property that a declarant sells, the declarant must give the buyer: (1) a copy of the association's governing documents; and (2) a copy of the association's most recent financial statement that includes any reserve funds held by the association or by a subsidiary of the association.  (Utah Code Section 57-8a-211(11)).
  • The declaration (CC&Rs) must contain certain things specified in Utah Code Section 57-8a-212.
  • Bylaws must be recorded for the association before the first lot is sold, and must contain certain things specified in Utah Code Section 57-8a-216.
  • Not developer duties, per se, but association duties during the time a developer usually appoints the board of an association:
    • During the period of administrative control, at least once each year, and each time the association increases a fee or raises an assessment, the association must hold a meeting that complies with Utah Code Section 57-8a-226, Subsections (1) though (5).
    • The board must prepare and adopt a budget for the association and present the adopted budget to association members at a meeting of the members.  (Utah Code Section 57-8a-215). 
    • An association is required to keep certain records and make them available to homeowners who request them (even during the period of administrative control).  The law also requires all associations to keep and make available to homeowners a copy of the association’s: (1) declaration and bylaws, (2) most recent approved minutes, and (3) most recent budget and financial statement.  Associations are required to make those documents available to owners, free of charge, through the association website, or, if the association does not have an active website, it must make physical copies of the documents available to owners during regular business hours at the association’s address registered with the Department of Commerce’s Utah HOA Registry.  (Utah Code Section 57-8a-227).
    • No later than 90 days after recording of the CC&Rs, the association must register with the Department of Commerce Utah HOA Registry, and update the Registry within 90 days after a change in any of the information required to be provided to the Registry.  (Utah Code Section 57-8a-105).
    • An association is required to keep of the association's funds in an account in the name of the association, and may not commingle the association's funds with the funds of any other person.  (Utah Code Section 57-8a-230).

In condominium associations:

  • During the period of administrative control, for any property that the declarant sells, the declarant must give the buyer: (1) a copy of the association's governing documents; and (2) a copy of the association's most recent financial statement that includes any reserve funds held by the association or by a subsidiary of the association.  (Utah Code Section 57-8-7.5(11)).
  • The declaration (CC&Rs), bylaws and plat must contain certain things specified in the Condo Act.
  • Not developer duties, per se, but association duties during the time a developer usually appoints the board of an association:
    • An association is required to keep certain records and make them available to homeowners who request them (even during the period of administrative control).  The law also requires all associations to keep and make available to homeowners a copy of the association’s: (1) declaration and bylaws, (2) most recent approved minutes, and (3) most recent budget and financial statement.  Associations are required to make those documents available to owners, free of charge, through the association website, or, if the association does not have an active website, it must make physical copies of the documents available to owners during regular business hours at the association’s address registered with the Department of Commerce’s Utah HOA Registry.  (Utah Code Section 57-8-17).
    • No later than 90 days after recording of the CC&Rs, the association must register with the Department of Commerce Utah HOA Registry, and update the Registry within 90 days after a change in any of the information required to be provided to the Registry.  (Utah Code Sections 57-8-13.1).
    • An association is required to keep of the association's funds in an account in the name of the association, and may not commingle the association's funds with the funds of any other person.  (Utah Code Section 57-8-60).

This list is not intended to be an exhaustive list of developer duties.  Always consult an attorney for advice applicable to a specific situation.  

See also Developer duties -condo; Developer duties -comm ass'n

Davencourt at Pilgrims Landing HOA v. Davencourt et al. (economic loss doctrine, developer duties, implied warranty of habitability) '09