PJNR, INC. v. Department of Real Estate

The Facts and Proceedings

In December 1984, the Department of Real Estate (DRE) issued a “Planned Development Final Subdivision Public Report” (public report) for the Millerton Lake Mobile Home Village (development) for the purpose of informing potential purchasers about the respective rights and responsibilities of the subdivision developer (developer) and lot owners. The public report identified the developer as “Fortune, Inc. & Rocca-Green Inc.” A subsequent amendment to the report identified the developer as “PJNR, Inc.” The report reflected the development was a common-interest subdivision in which lot owners obtained an interest in common areas and facilities to be owned and operated by the Millerton Lake Mobile Home Association (Association). Membership in the Association was mandatory upon the purchase of a lot. The report advised that the developer would control the affairs of the Association until there was a sufficient number of purchasers to elect a governing body for the Association.

With respect to maintenance and operation expenses of the Association, the public report stated the developer had submitted a budget for maintenance and operation of common…