Originally posted 2010-07-11 11:28:16. Republished by Blog Post Promoter
Over the past 15 years or so, “arbitration” provisions have appeared with increasing frequency in a wide variety of contracts. For example, declarations of covenants and restrictions recorded for homeowners associations, construction contracts, employment contracts, and commercial leases all may contain arbitration clauses. Arbitration may be a good idea, but you should know what “arbitration” means before you agree to be bound by such a provision.
Many people confuse the terms “mediation” and “arbitration.” Mediation refers to a process whereby a third-party helps facilitate a negotiated settlement between two or more parties. A mediator does not make decisions, does not take evidence, and does not conduct hearings. Parties simply negotiate and the mediator helps foster those negotiations.
Conversely, arbitrations are conducted like regular trials, with a judge-like arbitrator (or arbitrators) making a final decision based upon the evidence presented, and hopefully the law of your jurisdiction. Appeals of an arbitrator’s decision are virtually nonexistent.
Originally posted 2013-03-11 10:30:11. Republished by Blog Post Promoter
It happens in a heartbeat – literally. Sudden cardiac arrest is a leading cause of death among adults over the age of 40 in the United States and other countries. Studies have shown, however, that when bystanders intervene and start cardiopulmonary resuscitation (“CPR”) or utilize an automated external defibrillator (“AED”), four out of ten victims actually survive this otherwise certain killer.
Community associations considering installing an AED at the clubhouse or pool are understandably concerned about liability. What if someone uses it incorrectly? Is the Association required to provide training? Should access to the AED be limited? What if the AED has not been maintained?
What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series)
Originally posted 2010-10-20 06:15:55. Republished by Blog Post Promoter
Board members are told that they have fiduciary duties to the community association, but what does that really mean? Fiduciary duties arise because the members of the association entrust a board member to act in the best interest of the association when handling the association’s business.
There are three components that are important to understand fiduciary duty. First, the Virginia Code, at § 13.1-870, imposes on directors a requirement that a director exercise her duties in good faith and in the best interest of the association. This requirement is the so-called “business judgment” rule. Second, Virginia case law imposes duty of care that requires a board member to act as a reasonable person would under similar circumstances. Third, Virginia case law imposes a duty of loyalty that requires a board member to put the association before any personal interest. These last two duties are referred to as “common law” duties. Continue reading “What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series)”
Originally posted 2013-11-20 05:47:06. Republished by Blog Post Promoter
Richmond Construction Law attorney Chris Hill, my friend and colleague, permitted me another opportunity to blog at his award-winning blog Construction Law Musings. Chris is an outstanding Virginia attorney, and his blog is a great source of information on construction law, including the intricacies of mechanic’s liens. You can also follow him on Twitter, @ConstructionLaw.
Chris has a regular feature called “Guest Post Friday” in which he invites other bloggers to contribute to his Musings. For this blog, we wrote a post exploring the statutory warranties, provided in Va. Code § 55-79.79 of the Condominium Act, that require the Declarant to warrant “all of the common elements for two years.”
Here’s a brief excerpt of the post:
When either a commercial or residential condominium development nears the time of automatic transition, the developer and the owners face many challenges. The developer, or “Declarant,” must transfer responsibility for management, enforcement of the Condominium Instruments, and finances, amongst other responsibilities, to the new owner-controlled Board of Directors. With the pending departure of the Declarant, owners can become concerned about possible construction defects with the common elements. This blog post discusses the process and responsibilities under the statutory warranties provided by the Virginia Condominium Act.
Originally posted 2013-02-04 08:00:58. Republished by Blog Post Promoter
When water leaks from one condominium into another, determining the responsible party is usually not too difficult. But what about when the hazard isn’t water, but bed bugs, parasitic insects of the cimicid family that feed exclusively on blood and often take up residence nearby or inside of beds, bedding and/or other sleep areas, who is responsible then? This blog post will review some of the issues regarding condos and bedbugs.
Originally posted 2011-07-26 08:30:49. Republished by Blog Post Promoter
Community Associations have been the subject of a lot of bad press lately. An Associated Press article is typical of news reports that lambast associations. The article tells about a 55-and-older condo complex in Florida. According to the article, units in the Inlet House condo complex used to be worth $79,000, but sold for as little as $3,000 after rats started chewing through toilet seats and sewage started leaking from the ceiling. The article goes on to vilify the condo association for levying a $6,000 special assessment on residents and then foreclosing on owners who don’t pay their dues.
In its eagerness to blame the condo association for the woes of these senior citizens, the article and many blogs pointing out the “abuses of HOAs” miss an important point: the association may be the only group really looking out for the interests of the owners. Let’s look at what the article does not allege: it does not allege that the Association was responsible for the rat infestation or the sewage leak and it does not allege that the Association could have prevented the housing meltdown that contributed to the decline in property values.
Originally posted 2011-06-07 09:00:08. Republished by Blog Post Promoter
As summer begins and the temperature rises, people are eager to cool off in community pools. For homeowner’s associations and condominium associations, this can be an opportunity to encourage members behind in their assessments to get caught up.
Before an association starts suspending pool passes to encourage members to pay their dues, however, it should be aware of provisions in Virginia Law that affect what actions it can take. Both the Virginia Property Owners’ Association Act and the Virginia Condominium Act allow an association to suspend services (including use of common areas such as pools) for failure to pay assessments, as long as the association complies with certain requirements.
Originally posted 2012-04-23 08:15:23. Republished by Blog Post Promoter
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.
What can an HOA do to collect past dues when a bankrupt homeowner surrenders property but the lender does not foreclose?
Originally posted 2011-07-20 08:22:44. Republished by Blog Post Promoter
An all-too-common scenario occurs when a homeowners association attempts to collect past dues and the homeowner files bankruptcy. The law is clear that the bankrupt homeowner is still liable for those post-petition dues. The United States Bankruptcy Code at Section 523(a)(16) makes the homeowner liable for “a fee or assessment that becomes due and payable after the order for relief to a [homeowners association] for as long as the debtor . . . has a legal, equitable, or possessory ownership interest in such unit.”
In other instances the homeowner decides to walk away from the property and surrenders the property to the lender. Instead of foreclosing, however, the lender simply does nothing. Therefore, the title of the property is still in the name of the bankrupt homeowner who walked away from the property, and they are not paying the assessments. The lender has not foreclosed so they are not paying the assessments. How can the homeowners association collect these past due post-petition assessments?
Originally posted 2010-12-08 08:00:44. Republished by Blog Post Promoter
Imagine if someone told Don Draper and Roger Sterling of Mad Men that they could no longer smoke in their apartments. They would look at you curiously, smirk and light up a cigarette. But Mad Men, the television show about a Madison Avenue advertising agency is set in 1965 and as the ad for Virginia Slims said, “[we’ve] come a long way, baby.” Almost half of all adults smoked in 1965 but that percentage has dropped to 22%.
The negative health effects have been documented and the reported adverse health effects caused by second-hand smoke has resulted in smoking bans in restaurants. One of the next areas in which smoking bans have been put in place is in condominium communities. Some of the smoking bans address common elements only but others have imposed a ban on smoking in the condominium unit.