When Jennifer Chao moved to the Mediterranean Forest community in 2020, she was promised a luxury golf course community with high-end amenities, but she quickly realized something was amiss.
For starters, the home she bought for $300,000 didn’t match the layout she was given, and many of the luxury amenities, including a golf course, didn’t exist or have yet to be built.
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“They said this is a great location and it’s luxury housing … Marty Golf Luxury Homes … but where is the golf course?” Chao told Fox 26 reporters.
She’s not alone. Other residents in the Mediterranean Forest neighborhood in southwest Houston have expressed similar frustrations. Some say they’ve had problems with their water service and received notices that their water will be cut off for non-payment, even though they haven’t received their regular water bills. In some cases, residents have been asked to pay thousands of dollars to have their water restored, only to discover that the city doesn’t provide water service to their areas.
Residents who say they paid thousands of dollars to live in an upscale neighborhood with a golf course and lake are plagued by broken gates, dirty ponds, clogged drains and overgrown grass. City inspectors and District F Councilwoman Tiffany Thomas have been visiting the area to look at the problems. They’re calling for developers and homeowners association leaders to be held accountable.
“Nobody wants to spend $300,000 to buy a home and then face possible foreclosure because of issues with a non-existent management company and an abandoned developer,” Thomas said during the visit.
At the time of writing, the developer and community management company had not responded to Fox 26’s requests for comment.
“Mismanagement of finances can lead to home foreclosure.”
In addition to the frustrating lack of amenities, Mediterranean Forest homeowners may also face liens against their property through no fault of their own. For example, a water disconnection notice may indicate that the management company has not paid utility bills on behalf of the community, which could lead to the utility company filing a lien against the property to collect unpaid utility bills.
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The absence of a golf course could be a symptom of a larger problem if it’s because the developer has failed to pay contractors. If the developer defaults on contracts, creditors can file liens against individual properties — even if the homeowners aren’t responsible for the debt.
Under Texas law, any contractor, subcontractor, or supplier can file a contractor’s lien to secure payment for labor or materials they provided to a project. This lien can be applied to the property itself, making it difficult for the owner to sell or refinance until the debt is paid.
Now homeowners in the Mediterranean Forest neighborhood are in limbo, unsure how to hold the developer and property owners association accountable for the lack of amenities and other issues.
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What remedies are available to homeowners in similar situations?
Affected homeowners have already taken several steps, including contacting local authorities and telling their stories to local news stations, to pressure developers and property owners associations to take action. Several additional steps could help reduce the financial and legal risks for these residents and others facing similar issues.
Reviewing the contracts can help residents understand the developer and association’s obligations regarding construction and amenities. Next, request access to the association’s financial records. By law, property owners associations must make these records public and “reasonably available” to owners. These documents may also list additional contacts and mediation procedures residents can use to resolve issues.
Before taking legal action, homeowners are usually required to file an Internal Dispute Resolution (IDR) document. This is an informal process in which the homeowner and the real estate association work together to resolve the issue. Your property owners association contract should describe how this process works.
Finally, consider hiring an attorney. Understanding the laws regarding real estate liens and disputes can be complicated. Most real estate associations and developers have their own attorneys, so it’s important to hire someone who will fight for your rights.
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This article is for informational purposes only, should not be construed as advice, and is provided without warranty of any kind.
