What you need to know:
Where the governing documents or the statute place the authority to interpret the governing documents with the board, the board’s interpretation will be binding unless unreasonable. However, if a director has a conflict of interest, the director can’t be part of the decision making process or the vote and must recuse herself/himself.
Continue Reading Conflicts of Interest and The Boards Power to Interpret the Governing Documents
What you need to know:
A Declaration can be amended to allow certain units to exit an association provided the governing documents and relevant statutes are followed, but obtaining an attorney opinion first will likely help you if the matter goes to court.
Continue Reading Can Some Units be Removed from an Association?
Although fees for document disclosures may seem too high, the time and effort to litigate may not be worth it.
Continue Reading Fee Limits for Statutory Mandated Documents – How Much Can the Association Charge?
Always have an attorney fees provision in your association’s governing documents, even if the association is entitled to them under the law.
Continue Reading Attorney Fees and Associations
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 with [Developer] after three years, but only if 75% of unit owners vote to end the contract with [Developer].” Of course, Developer also owned all of the commercial units, which constituted 22% of the voting units, and several residential units, practically making it impossible for 75% of the unit owners to do anything that the Developer didn’t want.
Continue Reading Claims for When Developers Have TOO Much Control of Association
Insurance policy language generally insures only what the condominium documents provide, not what state laws require. Having insufficient insurance can cost associations LOTS.
Continue Reading Insufficient Insurance Costs Association LOTS!!!
You read that right. Chickens. Are they pets or are they poultry? Depends what your governing documents say.
Continue Reading Chickens and Covenants
While many states have strong protections for private property, Associations can adopt architectural guidelines.
Continue Reading Association Can Adopt Architectural Guidelines
Developer recorded a Declaration in 2001 for the 260 Jamie Lane Condominium Association (“Association”) consisting of nine units in what seemed to be one building, with an allocation of the percentage interests based on the square feet of each unit. Like most Declarations, it provided that “[e]ach Unit Owner shall pay his proportionate share of the Common Expenses … in the same ratio as his percentage of ownership…” with corresponding lien rights if the payment was not made. The Developer sold five of the units in 2001 upon apparently completing a building within the Association. The Developer filed an amendment to the Declaration and Plat which stated that the building where the five sold units were, was complete and describing “the proposed units for a different building to be constructed on Lot 1.” The Developer continued to own the four uncompleted units. The Association at some point began assessing the Developer for the four unbuilt units, and when the Developer refused to pay, the Association placed a lien on the unbuilt units.
Continue Reading Developer Liable for Assessments on Unconstructed Units
Does a homebuilder need Association approval of its plans? NO, unless the condominium documents require it.
The plaintiff was the builder, Canyon Custom Home Builders (“Builder”). The defendant was Somerset Condominium Association, Inc. (“Association”). The Builder wanted to construct on eight vacant lots/units. The entire Association consisted of 37 units. Although some units could have single family homes on them, the Builder lots/units were designated for multi-family buildings. Under the condominium documents the Board was empowered to take various actions, including “to create certain rules for the ‘maintenance, conservation and beautification’ of the Condominium property and the health, comfort, safety, and general welfare’ of the Condominium property’s occupants.” In 1997 the Association approved an Architectural Control Committee (“ACC”), with the minutes of the meeting reflecting an intent to amend the declaration. The Board did not amend the declaration to reflect the ACC’s adoption. In 2012 the Association amended the ACC Guidelines. The Builder, because the declaration had not been amended, argued it could build whatever was not expressly prohibited by the declaration. The Association argued that the Builder was seeking to construct multi-family buildings and the 2012 Guidelines are entitled “Guidelines For Single Family Homes and Lake Front Condominium Remodeling and New Construction.” Builder was not looking to build either single family homes or lake front condominiums.
Continue Reading Architectural Control Through Rulemaking Authority is Proper IF YOUR DOCUMENTS ARE PROPERLY WRITTEN