what recourse do home owners in a new custom built development have when the original developer sells all the remaining lots to a new developer that?

Asked by Chinodog, 60619 Mon Mar 29, 2010

is now building tract houses of a much lower quality and price?

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Dominic Valenti’s answer
Dominic Vale…, , Chicago, IL
Mon Mar 29, 2010
As a developer myself I can tell you that every subdivision has a Subdivision Agreement between the municipality and the actual developer. This document usually dictates what the developers responsibilities are as they relate to infrastructure, size, and monotony. This is not to be confused with an association, which someone else mentioned. There could also be “deed restrictions” imposed by the original developer also. Be sure to have your attorney read every document referenced on your title report to verify what these are. The other item you need to verify is the Letter of Credit (LOC), which is issued by the developer’s bank and presented to the municipality to insure that all improvements required have been made. If the developer has become insolvent there’s a good chance his LOC has been withdrawn which in turn could make you responsible for further completion of the work. Be careful and call a pro. Good Luck!
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Mark Malave, Agent, Chicago, IL
Mon Mar 29, 2010
is your home in an association? If it is, you should contact an attorney. If not, then chances are you have nothing to say about what kind of house people build on their property. Either way, talk to your attorney.
Web Reference:  http://www.markmalave.com
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jeff donnell…, Agent, Chicago, IL
Mon Mar 29, 2010
This would depend if there are size restrictions on homes like minimum sqft, brick on the face ect... in the covenants and restrictions of the original development, and who now has control over these standards.
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