Long List

Disgruntled unit owners love to review their association documents and then demand every document that they think they might be entitled to.  In this case, the court made clear that reasonableness and discretion will play some part in what must be provided.

The Facts

In December of 2014 the Plaintiff sought to inspect the Associations records, including the:

  1. December 2012 and 2013-2014 bank statements;
  2. General ledger from 2013-2014;
  3. Specific 2013 and 2014 invoices;
  4. Official communications between the Association board members and the New Mexico Office of the State Engineer (OSE);
  5. 2012 and 2014 end of fiscal year and year-end balance sheets;
  6. 2012 and 2014 profit and loss reports;
  7. December 2014 accounts receivable aging report; and
  8. December 2014 open invoices report.

The Association was incorporated in 1973 in New Mexico. Plaintiff wanted to inspect the records because she was concerned over the increase in unpaid dues owed the Association and the Board’s financial reporting.

The Board produced most of the records, but “did not produce for inspection the bank statements, the general ledger, invoices, the accounts receivable aging reports, an open invoice report, and communications between board members and the OSE.” Continue Reading Inspection Rights of Unit Owners are NOT Endless

Association Academy: Collections

Please join Husch Blackwell’s Condominium and HOA Law Team and MPC Property Management at the Fireside Restaurant & Lounge on October 24 as we discuss the topics of collections, Husch Blackwell’s new Legal Document Review Program and other legal issues facing your associations.

Topics

  • Bringing your association back to black: collecting those delinquent assessments
  • Husch Blackwell LLP Legal Document Review Program
  • Your questions! We will leave plenty of time for legal Q&A

Continue Reading Association Academy: Collections – October 24, 2019

Hour Glass
Summary

The United States District Court held that a prior recorded condominium lien had priority over a federal tax lien but only to the extent of the amount stated in the lien notice. SO make sure you get everything you should in your lien filing.

I want to thank attorney William Z. Kolobaric and Hirzel Law, PLC in Michigan for bringing this case to my attention and for allowing me to reprint large portions of their blog on this subject.

The Facts

Defendant Pamela Norwood (“Norwood”) bought a condominium unit in March 2015 in the Yarmouth Commons Condominium project (“Condominium Unit”).  On April 6, 2015, the IRS made an assessment of past due income taxes against Norwood for the 2009 tax year she failed to pay but it was not until February 8, 2016 that the IRS recorded a Notice of Federal Tax Lien with the Macomb County Register of Deeds against Norwood’s property in Macomb County, which included the Condominium Unit.  About 10 days earlier, on January 28, 2016, Yarmouth Commons Association (“Association”) recorded a notice of lien with the Macomb County Register of Deeds in the amount of $1,490.00 for unpaid assessments, exclusive of interest, costs, attorney fees and any future assessments which may become due. Continue Reading Your Condo Lien can be Prior to a Federal Tax Lien if you File it Correctly, Timely & for the Full Amount Due

Does your condominium association or HOA sign contracts for vendor services? Who does the contract protect – the vendor or the association?  What you need to know about condo association and HOA vendor contracts in less than a minute.

Want to learn more about Wisconsin condominium and HOA law from experienced condo and HOA attorneys? Read all about condo and HOA law at Association Alert and click here to learn more about lawyer Daniel J. Miske.

Risk
Summary

The US Court of Appeals for the 4th Circuit held that a subrogation waiver provision in a construction contract barred an association’s insurance company from seeking to recover from an allegedly negligent contractor.

Facts

United National Insurance Company v. Peninsula Roofing Company, Inc.:  Pelican Beach Condominium (“Association”) needed a new roof. The Board, after obtaining specifications from an engineer, entered into a contract with Peninsula Roofing (“Contractor”).  The contract was a standard form AIA contract that is widely used throughout the country.  Peninsula Roofing placed a generator in the Association’s parking garage from which the contractor ran extension lines to power its tools. The generator caught fire and caused about $3 million dollars in property damage. Continue Reading Association Construction Contracts – What are Risks of that Waiver of Subrogation Term

Can our condominium association or HOA fine that resident that just won’t follow our rules?  YES, just follow a few simple procedures. Learn how in less than a minute.

Want to learn more about Wisconsin condominium and HOA law from experienced condo and HOA attorneys? Read all about condo and HOA law at Association Alert and click here to learn more about lawyer Daniel J. Miske.

Do you know for a FACT that your condominium association or HOA has all of the insurance the law requires you to have? Learn about the insurance coverage your condo or HOA should get in less than a minute.

Want to learn more about Wisconsin condominium and HOA law from experienced condo and HOA attorneys? Read all about condo and HOA law at Association Alert and click here to learn more about lawyer Daniel J. Miske.

Empty Wallet

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) left undone.  Where a new developer comes in to build upon the remaining lots, what responsibilities does he take on?  As related in a recent 2019 case, the answer may be found in the original development agreements with the municipality. Continue Reading Did Your Developer Go Bankrupt and Leave your Association Holding the Bag? Your Remedy May Lie Within the Developer Agreement

Surprise in Box

The Board of Directors always has the power to make and amend Rules and Regulations on its own, without owner approval…right? Wrong.  The Board’s rule-making power and authority completely depends upon what authority is given by the Declaration and Bylaws, and as we know, all associations’ Declarations and Bylaws are different!  This is true in Wisconsin and in many other States.  Knowing what is in your governing documents will keep you out of troubling lawsuits. Continue Reading Know What is in Your Documents—The Board Might Not Have the Authority You Think it Does…