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 doubt it.  Do you each pay the same amount in assessments?  Does that control?  What does your declaration say about the distribution of insurance proceeds if the unit owners elect not to rebuild?  Do you understand what it says? Does it even make sense? Continue Reading Why You NEED to Amend Your Association Declaration Insurance Provision Before You Have a Loss

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. (395 P.3d 788)). Continue Reading Developers Sometimes Draft Documents for Their Own Benefit

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 and/or engineer for construction defects. Continue Reading After Turnover Do a Developer’s Actions (or Inaction) Affect an Association’s Construction Defect Claims? YES

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 take both before and after developer turnover.

Before turnover, it is essential that you obtain all financial and corporate records of the association, all construction documents, all association contracts, as well as a complete list of the names, address and contact information for all unit owners and mortgagees. You should meet with the developer and project manager to determine if there are any ongoing issues (financial, construction, etc.).  Set up an insurance committee of unit owners to review your insurance policies.  Decide if your association is going to hire a management company and interview potential managers.  Hire a knowledgeable condominium attorney to represent the association for the turnover. Continue Reading Turnover – Considerations for your Condominium Board of Directors and Officers