Turnover From Developer—Unfair Easement

Picture this: an urban condominium complex and neighboring apartment building, built by the same developer, with one parking garage between the two. The condominium owners were led to believe that the garage belonged to them as a common element; however, just before turning over control to the unit owners, the developer/declarant secretly recorded an easement over 40 parking spaces for the benefit of his neighboring apartment building (essentially, giving an easement to himself). The developer sat tight for a few years, and then asserted his easement rights out of the blue.  The condominium association, on the advice of the Condominium & HOA Law Team, recorded a statement terminating the self-serving easement.  The developer sued the association, and following a win for the association in circuit court on summary judgment, the developer appealed.  When the appellate court also found in favor of the association, the developer took the case to the Wisconsin Supreme Court, which denied review, siding again with the association.  The easement was terminated, the association was able to keep its parking spaces with no strings attached, and the developer’s self-serving efforts were thwarted.

Lesson: Developers sometimes draft documents for their own benefit, but the law places limits on this “power” to protect associations.  Good condominium lawyers know those legal limits and can enforce owners’ and associations’ rights.

Categories

Three bars icon gold

Recent blog Posts

Three bars icon gold

What is a reasonable late fee for delinquent community association assessments?

Community associations depend upon the timely payment of assessments to maintain operations and protect property ...
Read More →

Owner to Owner Dispute – Lessons in Property Transactions

Owner to Owner Dispute – Over a Driveway Easement and Boat Slips:  A recent case perfectly illustrated the importance ...
Read More →

What Should Every Board, Owner, and Manager Know About Amendments?

If you serve on a condominium board, manage an HOA, or own property in a ...
Read More →

Winter Weather Reminders for Community Associations

As we deal with extreme winter weather, community association boards are dealing with challenges that come with snow, ice, ...
Read More →