Community associations have historically been able to stay largely uninvolved in neighbor-to-neighbor disputes unless the conduct complained of violated the governing documents of the association. If no governing documents were being violated, the neighbors would be expected to work out the issues among themselves. Now, there is an important step for association boards and managers to consider when learning of neighbor-to-neighbor disputes. The Fair Housing laws may create a duty for community associations to investigate complaints of discrimination between neighbors and to possibly take some action. Note – This duty might exist even if the board of directors and association manager … Continue reading →

A decision last week (November 4) by the NC Supreme Court provides helpful authority to older condominiums not only in the context of foreclosures, but in the larger context of relying on the retroactive portions of the NC Condominium Act (Chapter 47C). In the Matter of the Foreclosure of a Lien by Executive Office Park of Durham Association, Inc Against Martin E. Rock A/K/A Martin A Rock considered the issue of whether a pre-October 1, 1986 condominium, formed pursuant to the NC Unit Ownership Act (Chapter 47A), has the power of sale for foreclosure as set forth in the Condominium … Continue reading →

Law Firm Carolinas Partner David Wilson has been elected Chair of the South Carolina Legislative Action Committee (SC LAC). The SC LAC is a committee of the Community Associations Institute that monitors and influences legislation that impacts community associations, and its members talk with legislators on issues of concern to HOAs and condos. For more information on the activities of the SC LAC, visit the South Carolina Legislative Action Committee page.

In a recent South Carolina Supreme Court decision, the Court struck a mandatory arbitration clause from purchaser contracts with a home builder because the terms were considered to be unconscionable.  In Damico v. Lennar Carolinas, a group of home buyers in the Spring Grove Plantation community sued Lennar Carolinas for construction defect claims.  As one of its primary defenses, Lennar Carolinas pointed to the arbitration clause included in the contracts that each homeowner had signed.  These clauses required cases to be arbitrated and waived other protections normally available to a home buyer, such as trial by jury.  The Court determined … Continue reading →

Nobody likes to pay taxes, or in the community association world, high assessments.  However, Boards need to make sure that they are setting assessments at an appropriate level to account for anticipated and potentially unanticipated needs and obligations of the community. Board members have a fiduciary duty to the Association which can include making sure that they are doing what they can to assure that the Association is properly funded. Boards should do their best not to fall into the trap that can often be set by developers who may have set assessments at a lower amount in an effort … Continue reading →

Depending upon your community structure and governing documents, it is entirely possible that your HOA will provide maintenance within the community.  Examples of this are where townhome community documents provide that assessments cover select items of exterior maintenance (such as roofing systems, siding, or yardwork).  Condominium associations also may have an easement to access the interior of owner units in order to access the “common elements” (frequently the interior “guts” of the walls—utility lines/plumbing).  Such maintenance will involve the community association sending out contractors to assess the maintenance needs, and also performing work.  These contractors will be arranged and hired … Continue reading →

Earlier this week, the North Carolina Court of Appeals issued a decision in Grooms Property Management v. Muirfield Condominium Association. The case dealt with interpreting and applying insurance provisions in the declaration of an older condominium governed by the NC Unit Ownership Act, and determining the association’s obligation to purchase insurance and the application of proceeds in the event of a total destruction. The condominium building in question had been entirely destroyed by fire, and the cost of complete exterior and building repairs was estimated to be between $1.36 and $1.46 million.  The Declaration in this case required the association … Continue reading →

Last month, a federal judge approved a $1.2 billion settlement for unit owners and affected families in the Champlain Towers South condo collapse in Surfside, Florida.  The 2021 collapse was the deadliest condominium collapse in United States history and the third deadliest structure failure in United States history.  While the collapse is still under investigation, a leading factor in the collapse appears to be structural support degradation and corrosion caused by water intrusion. Champlain had obtained an engineering report in 2018 which found major errors in the construction of the pool deck, which had allowed rainwater to penetrate into and … Continue reading →