When is a developer of a subdivision no longer considered developer and no longer responsible for developer’s duties?

UPDATED: Jun 18, 2012

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When is a developer of a subdivision no longer considered developer and no longer responsible for developer’s duties?

I live in a subdivision in which the roads are failing. The developer still owns multiple properties that are still for sale. Is he still responsable for the maintenance of the roads he promised in selling these properties to the homeowners?

Asked on June 18, 2012 under Real Estate Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In answer to your question, a developer typically ceases being responsible for maintenance of a development when a homeowner's association is created in conjunction with recorded covenants, condiitons and restrictions and accepts the responsibility of such if applicable.

If there is no homeowner's association with respect to the development, then the developer's duties end concerning the infrastructure of the development when the local municipality through its governing board accepts the transfer of legal title with respect to the common areas such as roads and the like after there is final map approval.

Whether or not the developer is still responsible for maintenance of the roads you have written about depends upon in whose name the land that the roads occupy is in. The developer's or the municipality's?

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