Generally, residential subdivision and planned communities must be approved by a local government zoning authority – city or county, depending upon the location of the property. When subdivision approval is required, a developer may offer lots for sale and enter into contracts once preliminary plat approval had been obtained so long as the contracts (1) incorporate a copy of the preliminary plat and obligate the owner to deliver a copy of the recorded plat to the buyer before closing; (2) plainly and conspicuously notify the buyer that final subdivision approval has not been obtained, that the city or county may not grant approval, that changes between the preliminary and final plat are possible and that the contract can be terminated without the buyer being in breach if the final plat is materially different from the preliminary plat; (3) provide that even if the final approved plat is not materially different from the preliminary plat, the buyer may not be required to close earlier than five days after delivery of a copy of the final recorded plat; and (4) provide that if the final approved plat is materially different from the preliminary plat, the buyer may not be required to close any earlier than 15 days after the delivery if the final recorded plat, and during that 15-day period, may terminate the contract and receive a refund if the earnest money or prepaid purchase price, without breach or further obligation. (see NCGS ยง 160A-375.) Typically after plat approval and inspection of construction, the local government has no further role in the administering the homeowner association except to assure compliance with local ordinances or state laws (for example, a Health Department permit for a swimming pool operation).
What is the role of local government in HOA administration?
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