A recent case in Florida (MacKenzie v. Centext Homes, 208 So.3d.790 (2016)) was not bashful about holding a developer to the same rules as other property owners in a Homeowners’ Association (“HOA”). The HOA in this case was still largely under developer’s control during the period in question. The developer controlled Board included a reserve […]
Developer Held to Same Rules as Other Owners Read More »
Facts Montana Developer of three condominium-hotels at Big Sky Ski Resort sold units subject to Declarations that required “all unit owners to use [Developer], or an agent designated by [Developer], as their exclusive rental agents,” when renting out their condominiums. The Declarations also provided that “Unit owners may decline to renew the rental management contract
Claims for When Developers Have TOO Much Control of Association Read More »
Becker Boards Summit, LLC v. Summit at Copper Square Condominium Association – 2018 WL 6695279 ( 2018 Ariz.) Issues: The court in this case addressed two important issues: Can a Developer, before turnover, amend a Declaration to convert Common Element to Limited Common Element for the benefit of a Developer Unit? Can Developer contracts entered
Declarant Contracts, Including Easements, can be Voided Read More »
Summary Declarant owned nine of 10 units, controlled the board and association, failed to have an association bank account, intermingled the assessments that were paid into his business account, never held elections or annual meetings and kept no separate corporate records. Yet, the Court held that these failures could not be used as an excuse
Facts Plaintiffs were two owners (Maples and Brown) at Compass Harbor Village Condominium Association in Maine (the “Association”) who had purchased their respective units sometime in 2007. The Declarant was an LLC that held more than 50% of the votes (15 of the 24 units) and therefore controlled the board. For many years the Association
Failing to Maintain and Properly Collect Assessments is a Breach of Fiduciary Duties Read More »
Yes, developers can be lazy, greedy good for nothing con-artists. Developers can also adversely affect the rights of an association by simply doing nothing. Specifically, a developer (owner of the property and declarant of the association) with knowledge of construction defects can prevent the association and/or unit owners, after turnover, from potentially suing the contractor
Even the best and most established real estate developers can face hard times, especially in the aftermath of recession and economic downturn, as we experienced a few short years ago. Many condominium and subdivision developments found themselves half completed, both in terms of units and homes built, and common area improvements (like streets and curbs)
A Court in Colorado recently dealt with a developer who placed a provision in the declaration of a condominium association prohibiting amendment of the declaration – ever – without the declarant’s written consent, and requiring that all construction defect claims be resolved through arbitration (Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc.
Developers Sometimes Draft Documents for Their Own Benefit Read More »
Is your condominium or homeowners association currently controlled by the declarant/developer? Would you like to be prepared when the developer is ready to hand over the reins to you, the owners? In Wisconsin, developer turnover is governed by Section 703.15 of the Wisconsin Statutes. To ensure a seamless transition, there are certain steps associations should
Turnover – Considerations for your Condominium Board of Directors and Officers Read More »
Issue: If your association was destroyed by fire or some other hazard, and it did not make sense to rebuild, how would the funds be divided? Problem. Odds are that you don’t know the answer. The fact that you don’t know should scare you. Is every unit in your association worth the same amount? I
