St. Augustine Shores Forum

[Editorial Staff]

Feel free to share your thoughts with others in the community.

[angela]

Editorial staff:

I think it is important to those people who do not understand "common elements" vs "property owned by the homeowners. I will post simple examples that may give owners a better understanding of the difference between the two.

1. Mr. developer purchases a prime piece of real estate and decides to develop it into a subdivision with governing documents. He builds a clubhouse along with ponds, sidewalks etc. he includes the clubhouse/pool in these documents as a common element. He decides on a fee that all homeowners must may to maintain and use these areas. Mr. home buyer comes along and purchases a home. He is given title to his property along with the undivided interest in the common elements. Mr. homeowner can use any common element within his subdvision. There is one fee, for use of all elements including the clubhouse and pool.

2. Mr. Developer purchases a new track of land and decides to do things a bit different than he did when he developed the previous piece of land. He has governing documents and common elements just like above. A fee is set for upkeep and use of the elements. This time however, he builds a clubhouse and pool on property he has retained within the subdivision. Upon the completion of the subdivision, he approaches the new BOD and asks if they would like to buy the property. The board meets, agrees that it is a sound investment to purchase the facilities and in time, will make a profit on renting these facilities to the owners and general public. Remember, this area is not listed in the documents as a common element. It is simply a piece of property purchased on behalf of the owners by the current BOD. Thus, additional fees can be used to off set costs.

Many developers use method two. They often hold the mortgage and it is a win-win situation for them.
Please do not misunderstand. The Shores clubhouse and pool area was purchased from Deltona, however, it was already a common element. I know this can be very confusing, especially to folks who do not work in this industry. Please feel free to ask any questions you would like. I will try to answer the best I can or refer you to someone who can.