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Unit Owners Beware: The Developer May Have Stacked The Board Against You (FL)

Are you concerned that the developer of your condominium did not deliver on the promises made to you when you purchased your condominium unit? Are you concerned with the construction of the condominium in which you live? For most individuals

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Colony developer and neighboring residents agree on plan for the property (FL)

When the Colony Beach and Tennis Resort was in its 1970s heyday, Aquarius resident Frank Morneau remembers coming and going through a private entrance between the two properties to buy a morning paper or visit the dining areas. His children

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Homebuilders and Contractors Beware: Construction Defect Claims May Be Filed More Than 10 Years After Construction is Complete (FL)

A statute of repose sets a firm deadline by which a lawsuit may be filed after the occurrence of a particular event. Once the statute expires, a prospective defendant is no longer exposed to legal action. Florida has a ten-year

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The Risks of Delegating Infrastructure Maintenance to Community Associations

Common-interest community associations, including home owner associations (HOAs), condominium associations, and housing cooperatives, play a critical role in the maintenance of local infrastructure. Over the past few decades, a growing number of cities and counties have delegated the responsibility for

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Representing condominium developers (MA)

Like most condominium lawyers, I represent condominium associations and developers. In this article, however, I am going to summarize some of my thoughts on representing condominium developers.  I am deliberately being provocative and aggressively pro-developer in this article. As Sasha

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Hospitals-Turned-Condominiums: The Latest Conversion Trend (NY)

In New York City, the real estate game is hard fought and won by aggressive players. Everyone wants a piece, from developers to buyers. So when space — a rarity in the crowded metropolis — becomes available, it gets used.

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Turnover Troubles: Homeowners Can Take Down Goliath

One of the most recognizable narratives in human history is the famed story of David and Goliath. Often, we find that homeowners are David in the seemingly impossible fight against Goliath, the community developer. This analogy is never more apparent

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Traçage condos rebrand, eye construction as legal woes end (LA)

After more than 10 years of delays and over a half dozen lawsuits from neighbors, a Warehouse District high-rise condo complex is moving forward with a new name and fewer developers.  Spectrum Capital, the financial arm of the former Tracage

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Financial woes downstream for Falling Waters (IN)

With years of financial and legal woes now in the past, developers of the Falling Waters subdivision are hoping to get back on track, welcoming new buyers to the upscale development.  “The homeowners are just ecstatic,” said Babe Woodward of

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Small victory for homeowners in Helen’s View case (WA)

A small victory in the ongoing legal case between the Helen’s View Homeowners Association and developers seeking to build on an HOA remainder parcel happened last week as a county Superior Court judge ruled to remove lis pendens, or a

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Association Deficits Don’t Excuse Developer From Funding HOA Reserves

Developers must establish and fund reserve accounts for their projects during the initial years while they retain control of the homeowner associations. However, there are various legal and bookkeeping maneuvers that they often employ to attempt to avoid or diminish

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Developers want my condo, so how can I fight it?

Q: I enjoy reading your informative Q&A columns. I currently have a condo unit I rent out to a tenant. Recently a real estate developer called me and left a voice message about selling my unit at a premium. I

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Appeals court decides Centex must pay into HOA reserve (FL)

The 5th District Court of Appeal recently decided in favor of a pair of homeowners representing themselves in a case against their homeowner association at Sullivan Ranch.  According to a report by the Orlando Sentinel, Sara MacKenzie, who had only

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What Condominium Owners Should Know About Developer Turnover of the Association: Part I

During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage

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Trump Tower developer sues Vancouver construction company for alleged shoddy work and bad management

The developer of Trump International Tower and Hotel is suing a local construction company, claiming that shoddy work and poor management of trade contractors delayed the high-profile project.  Holborn Developments (West Georgia) Ltd. filed a notice of civil claim on

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How can a condo owner thwart sale of the building to a developer?

Q:  I currently have a condo unit that I rent out to a tenant. Recently, a real estate developer called me and left a voicemail message about selling my unit at a premium. I am sure he has done this

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Pre-Filed South Carolina Legislation Signals Push to Regulate Developers

In 2016, the South Carolina legislature organized a study committee, titled the “South Carolina Committee on Homeowners Associations,” which explored various issues affecting the level of authority that developers have over their own development projects. Various opinions on developer control

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Windermere Country Club owner files lawsuit against Orange County (FL)

Unhappy with Orange County commissioners’ unanimous decision to deny him the development rights to a 155-acre plat on his property, the owner of the Windermere Country Club Golf Course is trying – again – to obtain the right to develop

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When the Sponsor Won’t Let Go (NY)

Roy Smith moved into the Wainwright, a 67-unit rental building in Forest Hills, Queens, back in the fall of 1990. When the building was converted to a condominium two years later, Smith was able to buy his apartment at the

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Federal Appeals Court Finds Luxury Condo Owner’s Suit Filed too Late Against Insurer (NV)

A luxury high rise condominium located in Las Vegas, Nevada, was found to have been barred from recovery of its $5 million window damage claim, according to a ruling by the Ninth Circuit of the U.S. Court of Appeals.  The

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South Carolina Court of Appeals Rules on Jury Trials and Class Action Waivers in Master Deeds

The South Carolina Court of Appeals has offered insight into its opinion on the issue of whether a developer may contractually create and enforce jury trial and class action waivers in a master deed. The Court’s position is good news

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This could be the biggest condos-to-apartments switch in the city (IL)

After taking over one North Side condominium tower and converting it back into apartments, a New Jersey investment firm is plotting a similar deal at an even bigger one overlooking Belmont Harbor.      Read the article…………

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At $35 million, this condo deal was ‘quite an adventure’ (IL deconversion)

The Clark Place condominium tower in Lincoln Park is an apartment building once again after a $35 million deal to buy out its owners.  Strategic Properties of North America has completed its acquisition of the 133-unit building at 2625 N.

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As Building Code Adoption Increases, Insurance Losses Decrease

Maintaining a safe and secure building is a major concern for property owners and managers. Due to the important role buildings play in society, architects and engineers begin plotting out the the safety measures and standards well before the actual

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Resort With A Real Estate Ownership Component: A Turnaround Case Study

Whether the setting is sun-and-sand, snow-and-ski, or an indoor water park, today’s destination resorts commonly feature real estate ownership programs. Structured as whole ownership, fractional ownership, or timeshare, these “residential” condominiums typically feature fully equipped kitchens and multiple bedrooms. This

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Millennium Tower Developer Considers Drilling To Bedrock For New Highrise (CA)

Amidst the legal and PR kerfuffle they’ve been dealing with over the last few months regarding the sinking and tilting Millennium Tower, developer Millennium Partners appears to be reconsidering the foundation of their latest project already under construction at 706

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Downtown Sarasota condo sidelined by lawsuits

The contractor building The Jewel condo tower in downtown Sarasota is suing the owner and the designer of the 18-story high rise, claiming numerous and unexpected changes have delayed the $50 million project’s completion.  Suffolk Construction Co. maintains multiple changes

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Pine Forest POA, government battle back in court in May (TX)

A legal wrangling over Pine Forest property along Texas 71 will come to bear in a courtroom again early next month, when a judge might decide how the property owner’s association — which serves two large neighborhoods, one developed and

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Condominium Deconversions: Examination of a Section 15 Sale (IL)

Until recently, the word “conversion” was generally thought to mean the process through which an apartment building was converted into a condominium association. However, in the wake of the 2007 market crash and real estate downturn, few condominium conversions have

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HOA Manager Balancing Act, Part II

The article HOA Manager Balancing Act seemed to suggest that if a management company was involved in a homeowner association’s management both before and after transition that there was an inevitable conflict of interest. It also begged the question “Can

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2 condo boards sell buildings for deconversion to rentals (IL)

The condo boards of two North Side buildings sold their properties for deconversion to apartments, with the combined 34 units going for nearly $12.2 million.  JAB Real Estate paid $4.87 million on July 13 for a 15-unit corner building at

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Managing New Startup Condominiums And Communities For Developers

Managing startup condominiums and communities is a unique job. There should be a community manager with experience working as part of a team, and that team should include other professionals in addition to the developer.      Read the article………….

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The HOA Manager Balancing Act

Homeowner association (HOA) management companies retained by developers often must balance the competing interests of the developer and the homeowners. They just as often find the developer pulls one way while the homeowners pulls the other way with the manager

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According to One Bankruptcy Court, the “Wrangle Over Executoriness May be a Tale ‘Full of Sound and Fury, Signifying Nothing’”

After a dispute arose between a developer of a subdivision northeast of Albuquerque and a homeowners’ association (“HOA”) over the ownership of certain common areas in the subdivision, the HOA brought an action against the developer seeking to compel it

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Revisiting Condominium Design and Construction Risks: Applying Lessons Learned to a Rekindled Market

Condominium work for developers, contractors and architects is reappearing after being scarce for several years, as leasing becomes less attractive to a maturing class of residential market participants. Condo projects can be attractive work, but are also high-risk. To a

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Pocket neighborhood a new housing concept in wide-open west

In June 2015, he began work on Crow Peak Places, which when finished will add 13 new homes near downtown Spearfish. But what makes the project unique is the creation of a “pocket neighborhood,” which encourages a more neighborly lifestyle.

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Master-Planned Communities Look to Innovative Future

Developers of master-planned communities (MPCs) must innovate to remain relevant, said Kathleen B. Cecilian, a ULI governor and chief executive officer (CEO) of Flemington, New Jersey–based marketing firm Cecilian Worldwide, speaking at the 2016 ULI Spring Meeting. “There are innovators

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Preparing for Turnover – What a Developer Should be Mindful Of (FL)

With all of the new construction of condominiums and single family homes, developers should be mindful that the end of the project cycle and turnover of the homeowners or condominium association is just as important as the beginning of the

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The State of the Business Judgment Rule Appellate Court Rulings (NY)

The greatest changes in cooperative and condominium law this past year did not come from the legislature or from the courts but from the New York Attorney General’s office (NYAG). This article will review some of those changes and the

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Condominium Developers Beware! New Illinois Supreme Court Decision Confirms Chicago Municipal Code Creates a Broad Private Cause of Action for Misrepresentation

On Nov. 4, 2015, the Illinois Supreme Court issued its ruling in Henderson Square Condominium Association v. LAB Townhomes, LLC. Henderson Square Condominium Association v. LAB Townhomes, LLC, 2015 IL 118139. The decision holds that condominium unit owners have a

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CREC Closes Unusual Sunrise Bulk Condo Deal (FL)

“Unlike many bulk condo sales, the 141 units did not represent a controlling interest—38 percent—in the 367-unit condominium complex,” Mekras said. “This transaction and other recent noncore apartment sales speak to private capital’s strong appetite for cash flow generated from

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Developing a Successful HOA

Lifestyles of the twenty-first century have radically changed from fifty years ago. The clamor for big lots and single-family houses has been replaced by a demand for condominiums and planned communities (generically called “homeowner associations” or HOAs).    Read the

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When is it time for developer to cede control of condo board to homeowners?

I recently saw your article regarding condominium reserve fund requirements and was wondering if you could possibly advise our complex resident/owners on what to do when you have completely inadequate homeowners association (HOA) reserves.    Read the Q&A…………….

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Acquiring Failed Subdivisions: The Risk of Tyrannical HOAs

Developers and builders who wish to acquire a failed developer’s residential subdivision, when there are existing homeowners in the subdivision, should BEWARE that a statutory turnover of HOA control may have occurred!   Read the article……….

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The non-greedy developer of S. California – Fruit from grapefruit groves in Temecula pays homeowners’ fees

Some may say Fleming is a patient man; others may see him as an entrepreneur with good business sense. Either way, he has harvested the fruit of his investment in the form of a working organic orchard with more than

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“The Donald” Trumps condo buyers by avoiding trade-mark licensor liability

United States presidential candidate Donald Trump avoided liability for alleged misrepresentations of the attributes of purchased hotel condominium units by a developer that is licensed by one of Mr. Trump’s corporate affiliates to use Mr. Trump’s name and trade-marks for

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How mandatory accounting methods impact South Florida condo developers

The South Florida condo market has experienced a boom in recent years, due in large part by the influx of foreign investors, many of whom are paying cash for their condos. While cash up front is ideal and developers can

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Hoboken (NY) Condo Developers May Be Liable For Faulty Construction

The developers of a 53-unit condominium building on Clinton Street in Hoboken may still be on the hook for allegedly faulty construction to the exterior of the building.    Read the article……….

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The “Continuous Trigger” Theory and Construction Defect Actions: Cypress Point Condominium Association v. Selective Way Insurance Co.

A New Jersey trial court granted summary judgment in favor of Selective Insurance Company holding that the “continuous trigger” theory does not provide insurance coverage subsequent to the manifestation of damages that arose from a subcontractor’s negligence in the construction

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NJ Appellate Court Rules That Consequential Damages Caused By Subcontractors’ Poor Workmanship May Be Covered By Developers’ Liability Insurance

In a recent case, Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, a New Jersey appellate court has provided potential additional sources of recovery for community associations involved in construction defect litigation against developers, as well as potential greater

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