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
A Court in Louisiana recently tackled the issue of short-term rentals (New Jax Condominium Association, Inc. v. Vanderbilt New Orleans, LLC, 219 So.3d 471). A Condominium Association adopted an amendment to its bylaws during its annual meeting prohibiting short term rentals. When a Unit Owner continued to engage in short-term rentals, the Association sued and received a permanent injunction, preventing the Unit Owner from continuing to engage in short-term rentals. The Unit Owner appealed, alleging that the amendment to the bylaws was invalid because certain board members had conflicts of interest, and because one board member changed his vote during the voting.
Continue Reading Banning Short-Term Rentals
A Maryland Court recently ruled on the extent of powers a Condominium Board had in dealing with a unit owner who was delinquent in assessments (Elvation Towne Condominium Regime II, Inc. v. Rose, 162 A.3d 1027). The Association at issue adopted a policy by which delinquent unit owners would be deprived of their right to enjoy certain common elements – namely the pool and parking of the Association. When they suspended those rights for the delinquent unit owner, the unit owner filed suit alleging the policy was unlawful, since the Association’s declaration did not provide for the Board to withhold common element use rights.
Continue Reading Delinquent Owners – Withholding Access to Common Elements
A Court in Arizona recently provided one more reason for your association to have a fine schedule and late fee policy (Turtle Rock III Homeowners’ Association v. Fisher, 2017 WL4837821 and 2017 Ariz. App. LEXIS 187). This particular Homeowners’ Association (“HOA”) required their owners to maintain their property in various ways relative to cleanliness and attractiveness, via the HOA’s declaration. The declaration allowed the HOA to assess daily fines if the violations were not corrected. The HOA sent a particular owner 90 separate notices but started fining the owner less than 30 days from the relevant notice.
Continue Reading Does Your Association Need a Fine Schedule and Late Fee Policy? Yes!
In a recent case out of New York (Board of Mgrs. Of 325 Fifth Ave. Condominium v. Continental Residential Holdings LLC, 139 A.D.3rd 472 (2017)) a condominium board signed a broadly worded document, releasing the developer and multiple other developer-related entities and their “heirs, executors, administrators, successor and assigns” from claims associated with the construction and design of balconies and their related structures. The Board then sued some of the developer-related entities and individual members of the entities under “alter ego” and “pierce the veil” theories.
Continue Reading Thinking of Signing a Release? Do Your Homework
This issue arises more than one might suspect. Because of association apathy, many committees go unfilled and often even boards don’t have members. The results of this apathy could be much different than you would expect.
Facts. In a 2017 case, the relevant property “was subject to a 1996 restrictive covenant that required the approval by an architectural control committee [‘ACC’] before any building … could be erected.” The ACC consisted of two named persons within the documents, one of which was dead and the other refused to act. The owner of the property filed a declaratory judgment action seeking to have the court declare the covenant unenforceable based on impossibility of performance. Other property owners objected, claiming the covenant could be made enforceable by modification. The documents did not provide a means by which new members could be added to the ACC.
Continue Reading What Happens When All Committee Members Resign, Refuse to Act or Move?
Facts. The documents required the consent of the first floor unit owner if the second floor unit owner wanted to erect a terrace above a first floor unit. When the first floor unit owner refused to give consent, the Board waived the consent requirement and allowed the second floor unit owner to construct a terrace, after determining that it would have no impact on the value of the first floor unit. The first floor unit owner sued to annul the board’s decision.
Continue Reading Who Says the Board Can’t Favor Resident Owners?
A Milwaukee association took possession of a unit through foreclosure, but could not rent out the unit because of its condition and could not sell it because of a large mortgage. After the property is vacant for several months and the lender did not start a foreclosure, The Husch Blackwell Condominium & HOA Law Team brought a quiet title action against the lender. The purpose of this is to either get the lender to take a deed for the property or have the court order the mortgage to be quieted (wiped out) on the title.
Continue Reading Quiet Title Actions
Condominium associations and homeowner associations are sued every day. These suits can arise based on construction claims, contract claims, negligence claims and various alleged statutory violations – We all know about the Fair House Act! Or the Wisconsin (or whatever state you are in) Consumer Act! Associations seem to attract people who feel that they are entitled to something because they now live in an association. Of course they are entitled to what the law and documents allow them, but for some that never seems to be enough. Often these types of owners or residents make up stuff or read the internet until they find some article or statement that supports their point of view and then cite it as fact. Yes, we have all dealt with those people. However, despite the validity (or lack of validity) of any lawsuit, there are some basic steps that every association should follow once served or notified of a suit.
Continue Reading Sued! What Should Our Wisconsin Condominium or Homeowners Association Do NOW?
An association in southeast Wisconsin consists of plots of land upon which the various unit owners can park a mobile home or trailer. Under the association documents, unit owners cannot be in the trailer more than 60 days between October and April or a $10,000 monthly fine will be assessed. A unit owner owed more than $13,000 in fines in addition to unpaid monthly assessments. When the unit owner continued to refuse to pay, the association started foreclosure on its lien.
Continue Reading Collecting Large Fines