Condominium litigation costs may slow new units from marketplace

This is a very interesting article about the Denver marketplace.   The article suggests that developers are not building too many condos because they keep getting sued and, it is therefore not worth it.   Apparently marketplace factors and high insurance make this problem particularly bad there.

But, in New Jersey all associations must go through "transition," the process where the associations takes control from the developer.   Often this results in fights between the association and the developer, with litigation not being uncommon.  Especially when you consider a 10 years statute of repose that makes these suits difficult, maybe impossible, to file if ten years pass after issuance of a certificate of occupant.

Read this article here .

Will condos become a rarity in New Jersey as well for the same reasons?

Lieberman and Blecher practices community association law in New Jersey and New York.   www.liebermanblecher.com

New Jersey Condominium Transition Agreements, from the Association's view point

Transition Agreements for Condominiums:   Let the Association BeWare

Transition is every association’s independence day.   It marks leaving home, growing up, being “on your own.”

Transition turns responsibility for the common elements and for running the project over to the Association.  The Developer bids you farewell  and leaves the project.

A transition agreement is often signed which in formal terms depicts this separation.  Often the first draft presented to the Association comes from the Developer.  Probably the Association should not sign it but make changes.

  No question, the Associations needs its lawyer to review the document.  Do not try to save money here.

The big issue in the agreement is the release the  builder wants to obtain  from the

Association.  From the Developers’ standpoint, it wants to fix whatever needs to be fixed and leave for good.

The Association may want the Developer to remain liable for repairs for a given time period.  In other words, not only does the developer have to fix whats broken,  but enough time must pass to show that everything was properly fixed.

The builder may also want the association to defend and indemnify it from third party claims.  Really?  When did the Association become an insurance company?   Trick question.   It never did and this issue needs to be looked at and negotiated.

The Association may have to certify it received all transition related documents from the developer.  If so, the Developer must first certify this is true.

The Association may be asked to represent that it is confident all of the books and affairs are in order when transition occurs.   If so,   the Association needs to independently verify this is so.

And who will identify all common elements and verify they were properly installed and functioning.  Some common elements are missed all together in transition.  An expert must be retained to make sure this does not happen at your complex.

Yes, this really is a multifaceted project.  It does not have to cost a small fortune.   But no, doubt,  from the Associations standpoint it must be properly done.

Lieberman & Blecher represents community associations within the State of New Jersey.            www.liebermanblecher.com

pot laws and condo rules, hi to high times

States everywhere are either decriminalizing marijuana or nearly doing so.  But will condo board follow step?  can boards treat this issue differently than their host states.  Read more.

Condominium Decks Collapse -- Who is Responsible

Wildwood Missouri residents who reside at the Sandalwood Creek Condominium Community need to look up at all times, especially to avoid  collapsing decks.  A deck attached to a residential unit collapsed this past Memorial Day when four people were standing on it.  All four are now in the hospital.

County officials came to the scene to evaluate all of the decks in the community and the news is not good.  It appears they may not meet current code requirements and some news reports report findings that other deck collapses in the community are foreseeable.

The decks are 30 years old and it appears many have not been properly maintained.  Some appear to be rotting.   One news crew found a decks that was visibly sagging, suggesting that it may be next in line.

So --who is responsible to repair these decks?    Of course it depends on state law and the association documents.  But in many instances, the homeowner will be responsible.

The reason is that these decks are often called "limited" common elements.  They are common elements because they fall beyond the "finished walls in."  But they are "limited," because only the adjoining unit owner can enjoy them, or in this case fall from them.  In these cases often it is the unit owner who must maintain, and if need be replace, the deck structure.

Some news reports suggest that this is the case in Wildwood Missouri.  But everyone may not agree and ultimately a Court may have to interpret the documents in question.

Who ever is responsible aside, decks must routinely inspected and maintained.  And they must be replaced when they are no longer safe.  Even if common funds will not be used to do this, the Association usually has the inherent right to ensure that this work is undertaken on a regular basis.

Stuart Lieberman Is an attorney with Princeton's Lieberman & Blecher.    The firm represents community associations in New Jersey and New York.  www.liebermanblecher.com

View this Great News Piece on Sick Building Syndrome-- Pictures of What to Look For....

An Idaho Television station just did a news spot on sick building syndrome and black mold.  Go here to view it.

It is a very informative news story that shows pictures of a home with very bad indoor mold problems, including black mold all over the place.

If you are interested in this issue, I suggest you view this.

Lieberman & Blecher represents victims of toxic mold exposure., 

Homeowners Associations Need to Be Fair and Even handed

This is an article about the Colorado Legislature's attempt to address complaints that homeowners associations go too far in collecting monthly assessment. 

 They complain that heavy handed tactics are employed and that late fees and other expenses can become a bigger problem than the actual amount owed.  Read the article here.

The point is that community associations need to be transparent, fair and even handed.  Tactics that are unfair are going to result in very costly law suit, and associations may have to pay for both sides lawyers.

Its better to take a little longer, use diplomacy and be fair.  Boards that rush to court are usually the most at risk of paying too much for lawsuits that were not appropriate to begin with.

If some Board members are litigation happy, others should speakup  and make sure that litigation and legal enforcement is being used cost effectively and as a last resport.  Speaking up requires courage, but a voice or reasons must prevail.

Many of these lawsuits are great for the lawyers but not the associations or the unit members.   So slow and steady is the message.

If problems continue expect legislative responses.  Which means this --community associations have a choice of self regulating,  or becoming overly regulated by the state.

  May I suggest that the choice is clear.


Lieberman & Blecher represents community associations in New Jersey.

Read about a Florida condo that has completely mishandled a special needs request

Condos. Must enforce the rules nd mut be uniform.  But they shod not ignore legitimate requests by home owners that have bona fide special needs.  In this case a resident with a horrible condition can now only walk around wht the aide of a shopping cart.   And look at ths short minded association response .

My tip to condo boards, here is everything not to do....
Cond

http://www.fox4now.com/news/local/205870931.htmlhttp://www.fox4now.com/news/local/205870931.html

Lieberman & Blecher represents community associations .   Www.liebermanblecher.om

WOULD YOU LIKE ICE WITH YOUR GLASS OF MOLD?

This published article indicates that a popular fruit drink may have mold.  According to the article, the reason for this is that the product lacks preservatives, which means the mold can grow within it.  

Apparently some of the product was returned because of mold masses.  Gross!!  Yes,  but unless you are susceptible probably not going to hurt you.

I have seen lots of mold in buildings and homes.   Have not thought much about it being in food though. 

You can read the article yourself and decide....

Lieberman & Blecher represents mold victims in New Jersey and New York.   www.liebermanblecher.com

Watch out for proposed laws that will lead to special assessments

This Op Ed represents an interesting point of view and is worth reading for condominium owners and association managers.   Particularly germane to struggling associations is the fact that even seemingly benign proposed legislation can make it difficult for the association to meet its financial obligations.  Invariably large special assessments can follow.

Read this column for a good explanation of this issue.

Lieberman &Blecher represents community associations in New Jersey.   Www.liebermanblecher.com

Getting high in the Condo? As States Legalize Marijuana, will Home Owner Associations Just Say No?

Marijuana is becoming legal, to various extents, in a lot of places.

Some states such as New Jersey and California allow if for medical purposes.  Colorado just plan allows it.  Some predict that sooner or later it will pretty much just be legal, basically everywhere.

The question is whether Home Owner Associations will be able to ban marijuana in instances where the state says its legal.  Will condos be able to just say no?  The answer is not so cut and dry.

Clearly Associations can protect public areas and common areas.   To some extent they may also be able to take measures that are for the common good, including, measures that maintain property values.

The amount that Associations regulate is very state specific, and even within states is not always very clear.

Some Associations have outlawed tobacco smoking all together, largely due to complaints that the smoke has permeated into common areas or into individual apartments.  Indeed, some people have become very sick because of cigarette smoking originating from privately owned residential units.  But outright smoking prohibitions can be very controversial and may invite a lawsuit.

As pot become more legal, Associations will invariably be asked how and whether they plan to respond.   And you can be sure that no matter what they do, their decisions will be challenged.

In other words, this is only the beginning of a discussion that will be reoccurring throughout this country, for quite some time to come.

Lieberman & Blecher proudly representswww.liebermanblecher.com
numerous homeowner associations in New Jersey.  

New Jersey Condominiums are Able to Limit Certain Liability Claims

Read about the ability of new Jersey condominiums to limit claims brought by unit owners.  This may make sense for a lot of associations.  It was blogged on our firms blog site.  

Lieberman & Blecher represents community associations in New York and New Jersey.

WWW.liebermanblecher.com