Summary

The language and definitions in your governing documents reflect the intentions of the Association.  You need to either follow them or amend them, but NOT ignore them.

Facts

Sunnyside Resort Condominiums is a private resort property located on Lake Gogebic in Gogebic County, Michigan, and governed by the Sunnyside Resort Condominium Association, Inc. (SRCA).  In 2006, the Plaintiffs purchased vacant lots within SRCA with an individual value of $13,000.  Unlike other lots, the Plaintiffs’ lots, among other things, lacked improvements to the property, utilities, and septic systems.

Assessments on Vacant Lots.  Although the Plaintiffs’ lots were free from any structures, Plaintiffs were charged assessment fees despite the association documents essentially providing that the Plaintiffs were not required to pay association assessment fees until a structure was built on the lot.  In part this was due to the fact that the percentages of value for the units were calculated based on several factors including, market value, size, and allocable expenses for maintenance. Plaintiffs stopped paying the monthly assessment fees for their two units in July 2015.
Continue Reading Vacant Land Units Can Have a 0% Percentage Interest

As many of you know, on July 30, 2020, Governor Evers of Wisconsin issued Executive Order #82 declaring a public health emergency to combat COVID-19, and Emergency Order #1 requiring individuals, with certain exceptions, to wear face coverings if:

  1. “The individual is indoors or in an enclosed space, other than at a private residence; and
  2. Another person or persons who are not members of individual’s household or living unit are present in the same room or enclosed space.”

Neither order defines “private residence” and the statutes are of very limited help on whether the common element and/or limited common element of a condominium association is part of a unit owners “private residence.”  The manner of condominium ownership does very little to clarify the issue, since the common elements are owned by the various unit owners.  Hence, each unit owner has a real property ownership interest in the common element. 
Continue Reading Must Wisconsin Condominium Residents Wear a Face Covering (Mask) in Indoor Common Element

Summary

Even where homeowners characterize their claims against an Association as civil rights violations, the claims involved in the parties’ rights under the declaration, and the declaration’s attorney’s fees provisions applied.

Facts

In 2011, David Merritt, a former HOA board member, and his wife, Salma, sued their Sunnyvale HOA, Classics at Fair Oaks (Classics), as well as three of its board members. The dispute centered on the Association’s covenants, conditions, and restrictions (“CC&Rs”) involving parking restrictions at the Classics. The HOA’s parking policy requires residents to pay for and obtain a permit for each vehicle parked on the street versus in the garage of each residence. The Merritts had a two-car garage, but only parked one car inside it. They argued that they can only park one car in the garage, because Salma is disabled, and needs additional space to enter and exit the vehicle when it is parked inside the garage.
Continue Reading Owners Pay High Price of Litigation Against Association

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

Water leaked through a bedroom ceiling in a downstairs condominium unit causing a small amount of damage and a significant amount of inconvenience for the owner. Approximately one year earlier, a similar event took place as a result of a frozen condensate line in the upstairs unit owner’s air conditioner, which caused water to back up and drip down through the floor into a common area between the floors and then through the ceiling of the lower unit, causing some of the ceiling drywall to fall. When part of the ceiling fell a second time, the association installed a drip pan that would automatically shut off the air conditioner if the pan filled. The total cost was less than $300. When the association sought to recover the $300 from the upstairs unit owner, he denied liability and claimed that the problem did not arise from his air conditioner, but from the duct work that ran between the floor of the upper unit and the ceiling of the lower unit, and that responsibility for the problem fell on the association.
Continue Reading Association Successfully Recovers From Unit Owner Who Refused to Fix Leaking Air Conditioner