@sushiritto Yes to all your questions except No, I do not like his plan. I tried to modify it. That’s when I ran into problem with him. His answer was no, you couldn’t do that. Me, I read all the rules and rules allow it so why not? Him, The reasons are too numerous to list, etc. That’s when I decided to go to the township and see what they had to say. They were ok with my plan. Actually, they liked my plan.
@HImom No loss yet.
You shouldn’t build a house that isn’t exactly what you want. And you need a builder/designer who shares your vision. This just doesn’t sound like a good combination from the outset.
If the guy does not own the land or the plans… tell him to get off your lawn!!
Would love to! Any idea how to d that without rubbing in wrong way?
Can you buy the land subject to an approved set of plans that you want? Essentially, an option agreement.
I’d just tell the architect/builder/architectural review committee/HOA President that you will be using your own architect, but thank him for his time. I’d also consider finding an real estate attorney, experienced with HOA litigation, if possible, and consult him/her just in case you have to sue this builder/architect personally and the HOA, if he screws around with your new set of plans. You know, “a fixer.” :))
You don’t like his plans and he won’t change them. Game over.
“We already had a few spats.” A huge red flag. Oh hell no!
Unless you can get rid of him, but I expect he will put up a fight and may try to prolong it. As head of HOA he will prolong it!
ETA - besides, do you want to live with an HOA? One that he is head of? How much do you like this land?
I missed the fact that the guy is the head of the HOA! Steer clear… I don’t feel any good vibes about it.
+1 on sushiritto’s recommendation of hiring a RE lawyer who is experienced not just in RE transactions but also in dealing with new construction, zoning, variances, the whole nine yards.
Why? You really don’t want to buy a bunch of headaches and potential lawsuits. Yuck. Cut your cord now and unload the property on someone else.
All I’m saying is if REALLY LOVE the lot and location, then I’d just consult with an experienced local RE attorney. Just precautionary. Hopefully, this architect-builder isn’t an obstructionist and the build goes smoothly.
IMO, dealing with an HOA can be a huge PITA. I’d try to avoid them, if at all possible, but I know you really like the lot. What I do recommend, is not to work with the architect-builder. Even on the best of terms, the relationship can get strained at times. And saying you can’t change the plans and changes are impossible is pure BS. If you have the money anything is possible.
We have never had a HOA, but I do understand that can add to the cost and time of construction and of course changes can be delayed because HOA May also need to approve.
Would definitely not use this person whi sounds very dogmatic and inflexible and not following YOUR wishes.
He doesn’t seem to get that he is working for YOU. I like the idea of consulting an experienced RE atty and seeing if you can nicely ditch this guy and find someone else.
Of course, I can foresee a situation in which others don’t want to get involved because of local politics…depends how much of a jerk this guy is willing to be.
A LOT! If I let it go, it will be one of those things I look back and regret.
@sushiritto Approval takes a long time in this town 6 months to a year. I can’t ask the seller to wait that long. He did finally agree to change the plan after I went to the township and got a verbal approval. The township called him after meeting with me for some reason. Change is possible but seems to take a lot of effort to facilitate it. I would like more than modifying his plan. There could be a whole other way to go about it that I’d like to explore. I can’t do that with him.
Looking at it another way – How strong is the market for this land? If you buy it, then have to walk away, how much risk are you exposed to?
If the architect is on the board of the HOA and really influences it, that’s a huge problem, much more so than his zoning board role. If he doesn’t like your interpretation of what he can do under the rules, the HOA board can probably change the rules. You could be stuck litigating against them, without a lot of prospects for success (given that you certainly have notice what the HOA thinks its rules mean). Things could also work out fine for you – you go ahead with your own architect, the HOA backs down on its chair’s rule interpretations – but you are taking on risk to find out. The question is really how much risk?
I guess I would lose about 20%. Is that worth the risk? It is a good way to look at it.
I don’t see what sort of changes you’re talking about. That can matter for lots of reasons, with an HOA. These are small preferences and conveniences? Or possibly out of sync with the rest of the neighborhood’s aethetic principles? (And, importantly, their resale values.)
If he’s just being willful and wants his product to suit his style and rep, you’re butting heads and need to change. But I think you may not know “why” he’s trying to rule. That matters.
Agree, it’s worth it to get a RE attorney. And if you have to walk away, call it “in the cards” or the “hand of fate” or whatever. On big money matters, unless one is quite wealthy, you can’t always get what you emotionally want or are attached to.
Under what circumstances would you lose 20% of your money?
Again, I’d start with reviewing the CC&R’s, copies of the HOA’s monthly minutes (last 12 months or so), insurance policy, budget and financial statements. Typically, these HOA’s have poorly written CC&R’s and no money. Other HOA’s have well-written CC&R’s, over-insured and are very well-funded. Poorly written CC&R’s and under-funded under-insured HOA’s should be easier to deal with when they’re faced with a potential lawsuit, both against the HOA and the Board members personally. 
Just to repeat, a consultation with a sharp local RE attorney would be advised, assuming this lot is worth the time and trouble. However, I gather that the township has already spoken with the architect/builder/committe chairperson/HOA President and progress may have been made, which would be good news.
I would not close on the property/land until I have all the signoffs needed to start construction the next day. EVERYTHING – HOA, town building permits, etc etc. EVERYTHING. It would be in my contract.
I asked that question earlier. You can certainly write your purchase contract to close with all approvals, but the seller doesn’t have to agree to it. It kinda depends on the market, but @Iglooo could structure the option contract with a payment equal to the amount of interest (e.g., $250,000 land purchase price x 5% or roughly $1,000/mo) so that seller would receive monthly option or interest payments, which could (or couldn’t) be applied to the purchase price, assuming both parties close escrow.
If I was the seller, then I’d want the option payments to be non-refundable and not applicable to the purchase price, so the option payments were like an “interest payment.” If I’m the buyer, then I’d want them to be refundable, at least to a certain date (feasibility date) and then beyond that feasibility date, then they become non-refundable.
However, here in CA, you would probably have at least 5-10 buyers bidding on the same property and then the terms end up being all cash in 7 days and the approvals are the buyer’s problem. And add a zero the purchase price. =))
The market isn’t as bad as in CA but sale is moderately brisk. @JHS made a good point. If I buy and end up reselling, I would lose about 20% in my guess. It may be worth it. Buy it and sit on it and make him forget about it? 