New condos are popping up all over the city. It’s understandable when you consider all the perks of owning a condo. Condos tend to command higher prices on the market, but there is also the question of freedom. When you own a condo, it’s yours. Read more……..
Illinois Supreme Court Agrees to Decide Breadth of Condo Developer’s Tort Duties
In the closing days of its November term, the Illinois Supreme Court agreed to review a decision from Division 5 of the First District with potentially significant implications for developers: Henderson Square Condominium Association v. LAB Townhomes. Henderson Square poses several related questions about the marketing of condominium units and the breadth of a developer’s […]
The Unfinished Suburbs of America
Janeen Milhorn and her husband bought their four-bedroom ranch-style house on a quiet street in this California suburb in 2004. It was on one of the farthest lots in the development, which Milhorn liked because it meant she had more land, and because it looked out onto a hay field. Read more………
3 ways to protect your portfolio from HOA super liens
Lenders trying to foreclose on properties that have HOA assessment liens face a number of pitfalls, and a recent decision by the Nevada supreme court looks to make it worse, not better, for lenders, servicers and investors. Read more……..
Tax Cases (And Rulings) Of 2014: A Big Break For Home Builders
This was more than just marketing chatter, however, as Shea invested significant funds – upwards of 30% of total budgeted costs, in some developments — in the amenities – such as pools, golf courses, and clubhouses –for each neighborhood. In addition, Shea was held to its promise by state and municipal law, which required the […]
The Role of the Developer in a Homeowners Association
How is a homeowners association born? Where do the board members come from if there aren’t any homeowners yet? These questions are often overlooked, but it’s important to know the answers. The Association was started by someone and understanding the history of your Association may help you and other board members govern more efficiently. […]
President Obama signs ILSA amendment into law
President Barack Obama has signed an amendment to the Interstate Land Sales Full Disclosure Act of 1968 into law. The amendment exempts condominium units from filing and registration requirements mandated by ILSA, which was intended to protect consumers from fraud and abuse in connection to the sale or lease of land. Read more………
A Primer: Economic Loss Doctrine Not Necessarily Bar to Tort Recovery (MA)
Although the “economic loss doctrine” has historically barred recovery of certain classes of tort damages, the Massachusetts Supreme Judicial Court recently affirmed an Appeals Court decision holding that the doctrine did not bar a condominium association’s negligent construction claim against a developer for alleged faulty construction. The Court’s ruling in Wyman v. Ayer Properties. LLC, […]
Architects Beware: It is Now Settled That the Principal Architect Owes a Duty of Care to Third Party Purchasers for Negligent Design (CA)
In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, the California Supreme Court held that architects and engineers can be held liable to condominium owners for negligently prepared plans, specifications or design modifications. In doing so, the Court enlarged the scope of duty owed by design professionals to third party purchasers, holding that […]
Provisions in CC&R’s Requiring Arbitration of Claims Against Developers by Homeowners Associations or Owners Are Not Enforceable (CA)
In Villa Vicenza Homeowners Ass’n v. Nobel Court Dev., LLC, No. D054550 (4th Dist. Jan. 11, 2011, the Fourth District of the California Court of Appeal held that a provision in a declaration of covenants, conditions and restrictions (CC&R’s) that required a homeowners association (HOA) and homeowners to arbitrate claims against the developer are not […]
The Transition Switching from Sponsor to Owner Control
The goal of any property developer is to sell units, but until that objective is reached they have to assume all the day-to-day responsibilities to ensure smooth operations and continued sales. This requires wearing many hats—manager, board member and ombudsmen. As a result, it’s often a a relief when control of the property is transitioned […]
Pa. High Court Won’t Hear Developer’s Arbitration Push
The Pennsylvania Supreme Court on Thursday declined to hear an appeal of an appellate ruling that denied a developer the ability to push claims brought by a homeowners association over construction defects into arbitration. Read more…….
United States Supreme Court Issues Important Land Use Decision Affecting Monetary Permit Conditions
On June 25, 2013, the United States Supreme Court decided Koontz v. St. Johns River Water Management District, No. 11-1447, an important land use decision that may give developers and private property owners a stronger position in the negotiation of permit conditions. Koontz now requires state and local governments to demonstrate that a special permit […]
Transition Study, Reserve Study. What’s the Difference?
Most board members understand what a reserve study is and the beneficial role it plays in managing the financial future of the community association. Another study that comes up for recently constructed associations and is equally as important is the transition study. Read More……
Leadership Withdrawing Land After Purchase? Oh I Don’t Think So!
CCIOA has an interesting provision, contained in Section 210(4), which allows developers to withdraw property included in an association only if: (1) a portion of the real estate is subject to withdrawal; and (2) a unit in such portion of real estate has not yet been sold to a purchaser. Although this Section seems clear […]
Second Circuit Reverses Bacolitsas Decision in Rare Win for Condo Developers
A condominium developer has garnered a significant victory in a dispute with a buyer as the result of a decision by the U.S. Court of Appeals for the Second Circuit. In Bacolitsas v. 86th & 3rd Owner, LLC, a reluctant purchaser of a unit in New York sought to rescind his purchase and sale contract […]
State Supreme Court Permits Continued Development Of Franklin County Subdivision
The Tennessee Supreme Court on Monday upheld a decision of the Chancery Court for Franklin County to permit the continued development of Cooley’s Rift, a 1,400-acre residential development near Monteagle, despite objections from some original homeowners to changes in the development plan. Read More……
Developers may require that construction defect disputes be resolved through arbitration (CA)
The California Supreme Court recently ruled that developers – by including an arbitration provision under the Federal Arbitration Act (FAA) in Homeowners’ Association Covenants, Conditions and Restrictions (“CC&R’s”) – may require that construction defect actions be resolved through arbitration rather than by jury trial. Read More……
Some Possible Implications Arising From California Supreme Court’s Pinnacle Decision
On August 16, 2012, our state supreme court issued its opinion in Pinnacle Museum Tower Assn. v. Pinnacle Market Development, Case No. S186149 (Cal. Sup. Ct. Aug.16, 2012). The high court found that CC&Rs mandating arbitration between developers and homeowner associations (HOAs) were enforceable under the Davis-Stirling Act and were not unconscionable in nature. There […]
Privity, Shmivity, Says The California Supreme Court – A Provision To Arbitrate Construction Disputes In Recorded CC&Rs Will Be Honored If Not Unreasonable
Arbitration is a matter of consent, right? Because there can be no meaningful consent between a developer that drafts covenants, conditions, and restrictions containing a provision requiring arbitration of construction disputes, and a homeowner’s association (HOA) that doesn’t yet exist, how can the HOA in such circumstances be bound by the arbitration clause? That was […]