Builders and Owners: Have your residential construction contract reviewed before you sign it

October 30, 2014 on 1:09 pm | In Common Interest Community, Construction litigation, HOA litigation, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | No Comments

 

Construction litigation has become a time-consuming and expensive area of legal practice. Even in residential construction, attorney and expert fees, and other costs of the lawsuits can rise high into five figures. Unfortunately, in many instances, better planning and attorney review at the beginning may have prevented the bitter litigation that ensued.

Williamsburg Virginia Business Lawyers

Construction Contracts

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HOAs and Mediation: Not always a viable alternative to Litigation

October 30, 2014 on 1:09 pm | In Common Interest Community, HOA, HOA litigation, John Tarley, Real Estate Litigation, State & Federal Litigation, Susan B. Tarley, Unit Owners Association | 3 Comments

We have written extensively on the virtues of alternative dispute resolution, specifically mediation, to resolve disputes. Litigation is a time-consuming and expensive undertaking, and in the end, both sides are generally unhappy with the result because of the costs and time incurred.

But although we encourage mediation generally, mediation in HOA litigation is a much more complex and difficult undertaking. In this blog post, we will discuss difficulties with mediating HOA disputes.

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The Rule of Caveat Emptor in the Sale of Real Estate vs. a Seller’s Duty to Disclose

October 30, 2014 on 1:09 pm | In Construction litigation, John Tarley, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | 2 Comments

Simply stated, caveat emptor means “let the buyer take care,” or even more plainly stated: “Buyer beware.” In real estate matters, buyers are warned that they are to “exercise ordinary care in inspecting the condition of property.” Therefore, buyers are generally urged to obtain a home inspection and take such other care prior to closing on their real estate purchase. Otherwise, the buyers may not have any relief if they find adverse conditions after taking possession.

A case arising out of Charlottesville highlights the obligations of the buyers and the sellers in the purchase of a home. In that case, the seller of the home was also a licensed real estate agent, which added another complication regarding the duty to disclose. This blog posts analyzes that court decision, which offers warnings to buyers and sellers of real estate, as well as to licensed real estate agents.

 

 

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What happens if a tree falls from my property onto a public highway causing damage?

October 30, 2014 on 1:09 pm | In Common Interest Community, General Interest, Real Estate Litigation, State & Federal Litigation, Unit Owners Association | No Comments

“Tree law” fascinates us. I guess part of the reason is because many of us have at least one tree on our property, and during severe storms, we fear what would happen if one of those trees fell on our house, our neighbor’s house, or the street. Once the fear subsides, the next question we ask ourselves is “Who would pay if the tree fell on our neighbor’s property or vice versa and caused damage?” Or our neighbor’s tree may overhang our property or its roots may cause damage to our property, “What can we do then?” These issues are important considerations for property owners and community associations when reviewing their insurance policies.

The Virginia Supreme Court added to the small body of Virginia “tree law” cases. In this case, Cline v. Dunlora South, LLC, a man driving on a public road was struck and injured by a tree  that fell from private property. The man sued the property owner, claiming that the property owner’s “conduct constituted a nuisance because [its] lack of care, inspection, servicing, and/or maintenance of the subject property and tree was a condition that imperiled the safety of the public highway immediately adjacent to the property and tree, creating a danger and hazard to motorists and/or pedestrians.” The trial court dismissed the lawsuit, and on appeal the Virginia Supreme Court agreed that the property owner did not have “a duty to protect travelers on an adjoining public roadway from natural conditions on his or her land.” This blog post reviews that decision and what it means for us.

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When is a “Contract” not a Contract?

October 30, 2014 on 1:08 pm | In Business Planning, Construction litigation, General Interest, John Tarley, Real Estate Litigation, State & Federal Litigation | No Comments

We know that in Virginia, the parties to a contract are bound to the terms of that contract. We also know that Virginia courts look to the terms of that contract to determine each party’s rights and obligations. But what is a “contract?” This blog post looks at a recent Virginia Supreme Court case that gives a little guidance to answer that question.

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Benefits of HOAs Part 3: The Importance of Assessments to your Community

October 30, 2014 on 1:08 pm | In Common Interest Community, HOA, HOA litigation, Jason Howell, John Tarley, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

To many homeowners, the assessments they pay to their homeowners or condominium association are just one more bill each month. Too often, owners don’t realize the benefits they get in exchange for these assessments. Some owners even go so far as to stop paying their assessments. A careful review of your association’s budget would show that the benefits for owners that come from their assessment payments far surpass the cost of the assessment. But when an owner chooses not to pay, everyone in the community bears the consequences.

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Part 2 of The Rule of Caveat Emptor in the Sale of Real Estate vs. a Seller’s Duty to Disclose

October 30, 2014 on 1:08 pm | In Construction litigation, General Interest, John Tarley, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | No Comments

We wrote earlier about a Charlottesville case in which the court analyzed the duty to disclose for a seller of residential real estate. Although Virginia follows the general rule of caveat emptorthe court ruled that the seller, who was also a licensed real estate agent, may have violated a duty to disclose material adverse facts.

The purchasers alleged two other counts, alleging that the seller failed “to disclose the adjacent drain problems and history of flooding, constituting both fraudulent misrepresentation and constructive fraud.” The court dismissed those claims while providing a nice, succinct history of the law of fraud in the sale of a home. This blog post reviews the general rules of fraudulent misrepresentations in residential real estate sales.

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Virginia Statute – HOAs must adopt “Cost Schedule” to recover copy costs

October 30, 2014 on 1:08 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted  associations to recover the costs of copying the requested books and records.

This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.

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Oral Contracts are enforceable, but . . . .

October 30, 2014 on 1:08 pm | In Business Planning, Construction litigation, Real Estate Litigation, State & Federal Litigation | No Comments

Many times, parties enter into informal loan agreements on a simple oral promise to “pay it back.”  Similarly, others will enter into oral agreements to perform residential construction projects, or other types of projects. When things do not go as expected and the promises are of a value worth litigating over (or one of the parties to the promise thinks they are) things can go swiftly downhill.

Williamsburg Virginia Business Lawyers

Contracts

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Caveat Emptor and a Buyer’s Duty to Investigate Real Estate Purchase

October 30, 2014 on 1:07 pm | In Construction litigation, General Interest, Real Estate Litigation, State & Federal Litigation | No Comments

We blogged about a Charlottesville Circuit Court case in which the court analyzed the duty to disclose for a seller of residential real estate.  We wrote another post regarding that case discussing an exception to the rule of caveat emptor. Specifically, if the seller attempted to “divert” the purchaser’s attention away from problem areas, a court could find fraud and rescind the contract.

However, in Virginia, if a prospective home purchaser discovers information alerting him to a potential problem, that person is charged with knowledge he would have found had he diligently pursued the inquiry. That rule was highlighted in an unpublished opinion released by the Virginia Supreme Court. This blog post reviews the facts of that case and the lessons to learn for real estate sellers and buyers.

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