The Florida Condominium Act provides that an association has “the irrevocable right of access to each unit during reasonable hours, when necessary for the maintenance, repair, or replacement of any common elements or of any portion of a unit to be maintained by the association.” Fla. Stat. § 718.111(5)(a). It is tempting for an association […]
Judge dismisses homeowners’ lawsuit against Garden City (UT) over beach access
A lawsuit challenging public access to a segment of Bear Lake’s west beach was dismissed by a 1st District Court judge this week. In June, the Shore Lodge Estates Homeowners Association filed a lawsuit against the Town of Garden City and its mayor, John Spuhler. In the formal complaint filed in court, homeowners say each […]
Who Pays for Homeowner Association Documents (CA)
When a condominium is sold, who should pay the cost of providing the buyer with various HOA (Homeowner Association) documents, the buyer or the seller? Read more………
HUD Reverse Mortgages for Co-ops Unlikely
A long-awaited regulatory change that would open up the federal government’s reverse mortgage program to co-ops is unlikely to happen, presenting a problem for older New Yorkers. Read more……..
Changes… to Your HOA’s Restrictive Covenants (NC)
The North Carolina Court of Appeals recently rendered an opinion reiterating that all amendments to the restrictive covenants (“CCRs”) governing a planned community must be reasonable. As background, the existing law is that amendments to the CCRs must be reasonable in light of the developer’s original intent for the subdivision. Read more………
Palm Beach (FL) condo loses hurricane insurance fight
A Palm Beach County condominium association lost a court battle over a $5 million insurance payout for hurricane damage. Boca Bayou Condominium Association had only received $200,000 from its insurer, Southern Family Insurance, when that company went belly up, and the Florida Insurance Guaranty Association took over its claims. Read more……..
Purchaser of Property at Tax Sale is Not Liable to Condo Associations & HOAs for Unpaid Assessments (FL)
Florida’s Fourth District Court of Appeal issued an opinion in March of 2014 concerning properties governed by an association that are sold at a tax sale. The court, in A to Z Properties, Inc. v. Fairway Palms II Condo. Ass’n, Inc., held that when property with unpaid association assessments is purchased at a tax sale, […]
Homeowners Association Super Liens
If you don’t pay the fees and special assessments imposed by your homeowners’ association, in most cases, a lien will usually automatically attach to your property. In certain states, homeowners’ association liens are given “super lien” status. Read on to learn more about super liens and how they affect a foreclosure. Read more……..
Airspace in an Age of Drones (Research Paper)
The growing interest in domestic drones is drawing new attention to unresolved questions regarding the scope of landowners’ rights in the airspace above their land. Domestic drones are small, unmanned aircraft capable of delivering packages or capturing photos. Existing aerial trespass and takings laws, which were formulated prior to the advent of modern drone technologies, […]
What Happens if a Sheriff’s Deed is Transferred? Who Pays Association Assessments?
In a recent, unpublished opinion, the Michigan Court of Appeals held that the transfer of a purchaser’s interest in property that was acquired through a sheriff’s sale is not governed by Section 111 of the Condominium Act (MCL 559.211), and therefore, the transferee is not required to obtain a written statement of unpaid assessments to […]
Gov. Quinn (IL) kills bill to cap assessments tied to foreclosed condo sales
Gov. Pat Quinn on Tuesday killed a bill that would have limited the amount of money due to a condominium association when a foreclosed unit is sold. The governor, who had to act on the bill by Wednesday, used an amendatory veto to change the bill, shifting some of the costs tied to the sale of […]
Can Delinquent Condo Owners Be Exposed? (MD)
If you live in a condominium and you are delinquent on your monthly assessment, can your association disclose your name? If you live in a Montgomery County, Maryland condominium, the answer is yes. Read more………
When do HOA assessments become your responsibility? (IL)
A recent Illinois Appellate Court decision has brought to the forefront the ongoing dispute between foreclosure sale purchasers—usually mortgagees—and homeowners associations (HOAs) regarding the extent to which purchasers are responsible for HOA assessments. In a potentially significant ruling, the Appellate Court held that an Illinois foreclosure purchaser’s failure to pay assessments that come due after […]
Old Cases Ring True: A Review of Wolinsky v. Kadison and Breach of Fiduciary Duty Claims
As boards and managers take in the Palm II opinion and digest its consequences, we want to provide a few case briefs on existing condominium and homeowners cases that describe core legal concepts in the field. One case is Wolinsky v. Kadison, 987 N.E. 2d 971 (Ill. 1st Dist. 2013), a 2013 decision in a […]
The Impact of Tiara Condominiums: Independent Tort Claims and Jury Trial Waivers Make Their Way to Florida Banking Law
The newest development concerning independent tort claims and causes of action arising from a breach of contract manifests as a result of Tiara Condo. Ass’n., Inc. v. Marsh & McLennan Co. and is exemplified through the holding of Marian Farms, Inc. v. SunTrust Banks, Inc. Marian Farms, Inc. v. SunTrust Banks, Inc., No. 5D12-886, 2014 […]
Irvine (CA) City Council Candidate Unsuccessfully Tries To “SLAPP” Defamation Suit By Former Property Management Company For Quail Hill
As reported in an August 17, 2014 article in The Orange County Register, the Quail Hill HOA is in quite a struggle with the Barracudas, one of 20 teams in the Irvine Swim League using the neighborhood swimming pool for practices and meets. Evan Chemers, a resident of Quail Hill and Irvine City Council candidate, […]
New appellate case causes uncertainty about accepting partial payments (FL)
Before 2008, association attorneys were understandably concerned about accepting partial payments with a restrictive endorsement (where the owner wrote “payment in full” on the check.) Doing so might bar associations from demanding full payment, where the partial payment was not, in fact, payment in full. This is called “accord and satisfaction.” Read more……..
A Breakdown of Arizona HOA Fiduciary Law
In the HOA management industry, we often run into board members who not only don’t understand a law, but don’t even know it existed in the first place. Sure, most have a basic idea of what they can or can’t do and why they can or can’t do it; but, as a result of a […]
Condo Associations’ Rights And Remedies Concerning Abandoned and Foreclosed Units (FL)
Every so often condo associations must deal with one or more abandoned units within their communities. Whether the result of owners unable to secure a tenant or lender foreclosure actions, abandoned units can create serious issues for an association such as the growth of hazardous mold, insect infestation and other forms of unit deterioration. […]
SJC (MA) Removes Uncertainty and Contortions from Condominium Construction Defect Claims
The state’s highest court upheld an Appeals Court ruling (Wyman v. Ayer Properties) holding that the economic loss rule limiting recovery in tort actions should not be applied to community association claims for defects in the original construction and design of a condominium’s common areas. The SJC also rejected a formula for calculating damages the […]
Court Ruling May Result in Property Tax on Previously Exempt Community Association Property (NV)
A recent Nevada Supreme Court decision suggests that community association common areas may be subject to property tax based upon the value of common area improvements, even if the underlying land is effectively valueless because it is encumbered by restrictions of the community association. While this case is based on interpretation of Nevada law, it […]
California Supreme Court provides a Beacon of hope for condominium association claims against design professionals
In an opinion filed July 3, 2014, the California Supreme Court provided some clarification to California law concerning an architect’s liability to foreseeable third-party purchasers of residential units for design errors and omissions. In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (July 3, 2014) ____Cal.4th ____; 2014 WL 2988058, Cal. July 03, […]
Court Ruling Finds Fannie Mae Does Not Qualify for Safe Harbor Protection from Liability for All Unpaid Assessments in Foreclosure Cases
A recent ruling in Broward County Circuit Court could have significant implications for Fannie Mae and the community associations with units in various stages of bank foreclosure. In the case of Federal National Mortgage Association v. Park Place at Pompano Condominium, the court ruled that Fannie Mae was not entitled to the statutory “safe harbor” […]
New Florida Condominium and HOA Law 2014
Another year and another round of tweaking to Florida’s Homeowners Association Act (Florida Statutes Chapter 720) and the Florida Condominium Act (Florida Statutes Chapter 718) have been enacted. The new laws were signed by the Governor on June 13, 2014 and went into effect on July 1, 2014. Read more……
Publication of Debtors = Problems for Creditors
Publishing a list of deadbeats may seem like a cool and effective means of collecting debts but it could get the publisher(s) in big legal trouble. I recently resolved a case involving a homeowner who was part of the Olde Vineyard Homeowners Association. 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, […]
“Spoliation of Evidence”: Another Reason Not to Misbehave During a Lawsuit (NY)
In the ever-amusing annals of things co-op and condo boards shouldn’t do, one of them is breaking into an apartment during a legal dispute. This wouldn’t seem to be a point of which boards, or people in general, need reminding. But at the Park South co-op, at 200 Central Park South in Manhattan, that’s just […]
New law prohibits some fines for brown lawns during droughts
Californians who let their lawns die during a drought won’t risk a slap on the wrist from their homeowners’ associations, thanks to a bill signed by Gov. Jerry Brown on Monday. Read more…….
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 […]
Marijuana: Coming to an Association near you….
On June 16, 2014, Governor Rick Scott signed two bills into law, collectively referred to as Charlotte’s Web, which legalize the use of marijuana to treat conditions such as epilepsy, Lou Gehrig’s disease, and cancer. As medical marijuana laws continue to spread across the nation, so too will the number of dispensaries and individuals permitted […]
The 2014 Legislative Agenda in New England
The old saying that the only sure things in life are death and taxes leaves out a third certainty: legislation. Across New England each year, thousands of bills get filed in state legislatures, many of them as mundane as the naming of a bridge or a new state “something”—like designating the Fluffernutter as Massachusetts’ official […]
Illinois Legislative Roundup 2014
A quote often attributed to the Prussian statesman Otto von Bismarck in the mid-1800s says something to the effect that laws are like sausages—it’s better not to see either of them being made. It’s a clever quip, and it’s not entirely inaccurate, but the truth is that if you serve on the board of your […]
We have a sheriff’s deed, but who pays association assessments? (MI)
The Michigan Court of Appeals recently held that a purchaser pursuant to a sheriff’s sale was responsible for condominium association fees due from and after the date of the sale. In Wells Fargo Bank v Country Place Condominium Association, the bank acquired title by virtue of foreclosing its mortgage on a condominium unit and obtained […]
Rejecting meeting requisitions on minor technical grounds is a major foul (ON)
The recent Ontario Superior Court case of Hogan v. MTCC 595 demonstrates that some condo boards have not yet read the memo about being responsive to unit owners and exercising common sense. Headshaker cases like this one are worth highlighting as examples of how not to run a condominium. Read more…….
Legislative Update: Transfer of Special Declarant Rights Bill Adopted (NC)
HB 330, which was originally sponsored by Representatives Rob Bryan (Mecklenburg), Paul “Skip” Stam (Wake), Tom Murry (Wake), and John Szoka (Cumberland), was intended to clarify language in the Planned Community Act as to the transfer of special declarant rights. Read more……..
Architects May Be Sued Directly by Homeowners Association for Design Defects
In a unanimous decision, California’s Supreme Court has ruled that the principal architects for a condominium project may be sued directly by a condominium homeowners association for design defects. The case, decided July 3, 2014, is Beacon Residential Community Association v. Skidmore, Owings & Merrill, LLP, S208173. Read more………
Beacon Residential Community Association v. Skidmore, Owing & Merrill LLP
A homeowners association on behalf of its members sued a condominium developer and various other parties over construction design defects that allegedly make the homes unsafe and uninhabitable for significant portions of the year. Two defendants were architectural firms, which allegedly designed the homes in a negligent manner but did not make the final decisions […]
An Update on Arizona HOA Laws for this Coming Year
Look out, Arizona board members! Another Congressional session has passed in this desert we call home, and with this new session a slew of new laws directed specifically towards regulating HOAs have entered the political arena. Unfortunately, this time they mean business. Read more……..
2014 Legislative Roundup: What’s Happened, What’s Happening, What Might Happen
The 2014-15 legislative session in Trenton is underway, and as always, several housing-related bills are being debated or introduced. Some impact the state’s condos and HOAs as well as its relatively small number of co-ops. Read more……..
Privilege Issues Are Important in Homeowner Association Construction Defect Litigation (CA)
Attorneys in Homeowners Association (“HOA”) construction defect cases must meet with the homeowners to provide litigation updates and it can sometimes be difficult to preserve the attorney-client privilege for the communications made to a diverse group of owners. Read more…….
Association’s Statement Regarding Larry Murphree’s Flower Pot Violation and Lien for Unpaid Common Assessments
This statement is issued on behalf of the Tides at Sweetwater by Del Webb Condominium Association, Inc. in response to Mr. Murphree’s media release regarding his flower pot covenant violation and lien for unpaid regular assessments. “The Tides Condominium at Sweetwater by Del Webb, Inc. (“Tides”) would like to formally respond to recent media releases […]
HOAs Prohibited from Fining Homeowners for Failure to Water (CA)
As residents of homeowners associations (“HOAs”) began responding to the Governor’s plea by reducing their irrigation, HOAs fined their members for failure to maintain their yards in accordance with the governing documents. This led to swift action by both the Governor and the California Legislature. Read more……….
Will Houston Award of Nuisance Damages Stymie Urban Development?
A Houston trial court allowed a jury award to stand in favor of 20 homeowners who filed suit in opposition to a proposed urban residential 21- story high – rise development. Neighboring homeowners had opposed the Ashby High-Rise development for six years before suit was filed in 2013. Read more……
Hobby Lobby’s “passing strange” interpretation of RLUIPA: an unlikely, but potentially dramatic, impact on land use law?
Receiving almost no coverage—scratch that, absolutely no coverage—in yesterday’s Hobby Lobby decision was that an important part of the case turns on the relationship between the Religious Freedom Restoration Act (RFRA) and the Religious Land Use and Institutionalized Persons Act (RLUIPA). The Court’s opinion could, perhaps inadvertently, substantially affect not only the availability of contraception […]
Community Life: Law review continues (FL)
Today’s column is the fifth and final installment of our annual series reviewing new laws affecting community associations, condominiums, cooperatives and homeowners’ associations. Read more……..
2014 Legislative Update Part 3 (IA)
The 2014 session of the Iowa General Assembly brought a few changes to the real estate practice in Iowa. This series of posts will focus on the bills that passed and a few that did not. Read more……..
2014 Legislative Update Part 2 (IA)
The 2014 session of the Iowa General Assembly brought a few changes to the real estate practice in Iowa. This series of posts will focus on the bills that passed and a few that did not. Read more…….
We Have a Sheriff’s Deed, But Who Pays Association Assessments?
The Michigan Court of Appeals recently held that a purchaser pursuant to a sheriff’s sale was responsible for condominium association fees due from and after the date of the sale. In Wells Fargo Bank v Country Place Condominium Association, the bank acquired title by virtue of foreclosing its mortgage on a condominium unit and obtained […]
2014 Legislative Update Part 1 (IA)
The 2014 session of the Iowa General Assembly brought a few changes to the real estate practice in Iowa. This series of posts will focus on the bills that passed and a few that did not. Read more……..