Since the 1970s, the popularity of condominiums has grown steadily. Condominiums are typically less expensive than freestanding homes and are a viable option for couples who like to travel or who want to downsize after their children have moved on to their own homes. They’re also a good option for people who are not interested in yard work or outdoor maintenance.
Condominiums are considered to be community association homes, which differ from traditional types of home ownership. Ownership of common land is shared, and each unit owner has access to recreational facilities that would be an unaffordable luxury for most individual homeowners. On the minus side, condominium owners must pay an assessment – a regular fee for the upkeep of common areas and for certain services. Unexpected fees for communal property repairs may also be imposed.
A myriad of legal issues can arise due to condominium ownership. Belt Law Firm represents clients in cases that involve failed projects, condo construction defects, and condo fraud. In fact, Belt Law Firm, P.C. has a separate website www.condo-fraud-litigation.com that is devoted to this specific litigation area and the cases we are presently prosecuting.
The collapse of the condominium market in the U.S. has resulted in a flood of litigation. During the booming condominium surge across the country, many condominium developers responded by building or converting condominiums at a record pace. After the market’s collapse, developers were stuck with a huge inventory of unsold condominiums. This caused developers to abandon current and planned condominium projects (in particular condo-conversions) in droves. Angry condominium buyers responded by taking developers to court, alleging everything from breach of contract to fraud.
During every boom period of condominium development, it is common to see a corresponding boom in condominium litigation. However, the current upsurge in litigation differs from that in years past. Much of the condominium litigation in the past related to construction defects and were typically asserted against the contractor and subcontractors. In contrast, the litigation today is often by condominium owners suing the developers for fraud and breach of contract for failing to complete the project. Other common claims include the litany of federal and state statutes that govern the relationship between condominium purchasers and developers. Belt Law Firm, PC is involved in a number of condominium litigation matters, including cases in Florida and Las Vegas, Nevada. If you feel you were the victim of an unscrupulous developer, feel free to contact us to discuss your legal rights.
A group of condominiums may be overseen by a community association. They are also known as a homeowners association, a property owners association, a condominium association, a cooperative, a common interest community, or a council of co-owners. All condominium owners are members of the community association and must abide by all covenants, conditions, and restrictions (CC&Rs). The community associations are controlled by their boards of directors, who are unit owners elected at annual membership meetings. The association is generally responsible for the maintenance of the common areas while the unit owners are responsible for the maintenance of their own condominium. These obligations can vary by state and by the documents governing the association.
There are many legal issues intertwined with condominium ownership. Some states require that disputes arising between the community association and a unit owner must be arbitrated unless the dispute pertains to certain issues such as assessments, eviction, breach of a director’s fiduciary duty or claims for damages to a unit resulting from the association's failure to maintain the common elements.
Community associations are governed by widely varying state statutes. These statutes are frequently amended and, as such, frequently conflict with existing CC&Rs or bylaws. Disputes often arise over which requirements prevail. Associations with older sets of CC&Rs should consider consulting an attorney to draft new ones that address neglected areas. Along the same lines, CC&Rs may be amended to provide guidance on whether an owner or the association is responsible for a particular element of a maintenance project as well as for repairing interior unit damage caused by an unexpected failure of a common area element. If a CC&R amendment is not possible, a maintenance and repair policy containing the same information can be adopted by the board.
Many states have laws that contain specific requirements for community association board meetings. Lawsuits may stem from improperly conducted meetings. Issues include:
- Inappropriate topics (open versus closed meetings)
- Improper notice
- Unavailability of meeting minutes
- Unethical director behavior
- Inadequate member participation
Disputes between community associations and unit owners are the most common type of condominium litigation, though many problems are informally resolved through legal negotiation. In fact, an association’s governing documents frequently require mediation before court intervention can be sought. Associations can seek a court order requiring a defaulting unit owner to immediately comply with a CC&R or can seek to terminate possession rights through an eviction action if a unit owner is delinquent in paying assessments. In the event of a foreclosure, associations should have their actions supervised by an attorney.
With nearly 70 years of trial experience, the attorneys of Belt Law Firm, P.C. are familiar with homeowner laws and how they may impact you as a condominium owner. For your free consultation with a Condominium Law Attorney, fill out our contact form or call us at 1-888-933-1514 (toll free).
