Benefits of HOAs Part 4: What do homeowners really think about their associations?

October 30, 2014 on 1:07 pm | In Common Interest Community, HOA, HOA litigation, Jason Howell, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

We’ve mentioned already the abundance of news articles criticizing community associations. If these news stories are to be believed, then associations are unpopular indeed. But is it true that residents living in community associations are unhappy with their association? Research by the Community Associations Institute suggests that it is not. In fact, the research suggests that more people than ever are choosing to live in communities with associations, and the overwhelming majority of those people are happy with their association.

Statistics compiled by the Community Associations Institute show that the number of associations continues to grow. In 1970, just ten thousand communities, with a combined 2.1 million residents, were governed by associations. Today there are over 309,000 communities governed by associations. More than 62 million Americans live in associations. 1.75 million volunteers serve on community association boards, and a full 26 percent of the eligible U.S. population volunteers for an association at some point during a year, according to one estimate. That kind of service simply would not happen if associations were as widely disliked as has been portrayed.

Williamsburg Virginia Business and HOA Lawyers

Common Interest Communities

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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 1:07 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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3 tips for safe emailing with your attorney

October 30, 2014 on 1:07 pm | In Business Planning, Common Interest Community, John Tarley, State & Federal Litigation | No Comments

Obviously the use of email has changed many aspects of our world, including the practice of law. As with all new technology, we sometimes learn hard lessons. The attorney-client privilege is the foundation of effective communication between counsel and clients. Only a client can waive that privilege. Although email has far more positives than negatives, to protect attorney-client communications, use these three tips.

Williamsburg Virginia Business Lawyers

Attorney-Client Privilege

 

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

October 30, 2014 on 1:07 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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2015 General Assembly Update for Virginia Community Associations

October 30, 2014 on 1:07 pm | In HOA, HOA litigation, Land Use Planning, Real Estate Strategies, Susan B. Tarley, Unit Owners Association | Comments Off on 2015 General Assembly Update for Virginia Community Associations

The legislation that passed the 2015 General Assembly Session is mostly helpful to Virginia HOAs–clarifying issues created by some legislation, and providing solutions for owner apathy and bank foreclosure problems for associations.

Virginia General Assembly - Legislation

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Common Interest Community Board revokes a management company’s license

October 30, 2014 on 1:07 pm | In Business Planning, Common Interest Community, HOA, Merger & Acquisition, State & Federal Litigation, Susan B. Tarley | No Comments

The Common Interest Community Board (the “CICB”) revoked a management company’s license for regulatory violations.  In a case reported in the September issue of the Community Associations Institute Law Reporter (Virginia Common Interest Community Board v. Sarraga t/a Lakeside Community Management, File No. 2010-00562, June 24, 2010), the CICB revoked the license of Sarraga t/aLakeside Community Management and issued fines totaling $2,000.

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Arbitration instead of Court? Be careful what you ask for

October 30, 2014 on 1:07 pm | In Business Planning, Common Interest Community, John Tarley, Real Estate Strategies, State & Federal Litigation | No Comments

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.

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Part 2 on Virginia’s Unauthorized Practice of Law Rules and HOAs – What is considered the unauthorized practice of law?

October 30, 2014 on 1:07 pm | In Business Law, Common Interest Community, HOA, HOA litigation, John Tarley, Susan B. Tarley, Unit Owners Association | No Comments

We blogged previously about finding guidance in Virginia’s rules on the unauthorized practice of law as they pertain to community associations. In this post, we will review Virginia opinions that address whether certain work performed by managers is the unauthorized practice of law (“UPL”).

Gavel

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Ban on kids playing football = housing discrimination lawsuit against Virginia HOA

October 30, 2014 on 1:07 pm | In Common Interest Community, HOA, John Tarley, Real Estate Strategies, State & Federal Litigation | No Comments

Boards of Directors are empowered by statute in Virginia and often times by the governing documents of the community association to enact rules and regulations concerning common areas, common elements, recreational facilities or other areas of association responsibility.  Rules related to the use of common areas or common elements and recreational facilities should be based on concerns about safety, sanitation and nuisance.  In certain instances a Board of Directors may want to enact a rule to address the activities of children – limiting their pool time, forbidding children under a certain age from using recreational facilities or prohibiting certain activities on common areas or elements.  Be careful, the rule you enact may violate the federal and state Fair Housing Act.

According to a Complaint filed against a Chesapeake condominium association, the association had a “Group Sports Activity” rule that banned organized sports activities in the common areas without approval of the board. Concerns were raised whether this rule banned activities such as a parent and child passing a football.The Commonwealth of Virginia’s Fair Housing Board filed a housing discrimination lawsuit against Cedarwood Condominium Association, a Chesapeake condominium association. There have not been many of these lawsuits.

 

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Smile! You’re on HOA Meeting Camera! Can I videotape my HOA meeting?

October 30, 2014 on 1:07 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Unit Owners Association | No Comments

If you work with community associations in Virginia as a board member, manager or attorney, you probably know that Virginia law permits HOA members to record any open meeting of the association. The relevant statute, Virginia Code § 55-510.1(B) of the Virginia Property Owners’ Association Act, contains one short paragraph which outlines the recording requirement as follows:

Any member may record any portion of a meeting required to be open. The board of directors or subcommittee or other committee thereof conducting the meeting may adopt rules (i) governing the placement and use of equipment necessary for recording a meeting to prevent interference with the proceedings and (ii) requiring the member recording the meeting to provide notice that the meeting is being recorded.

The provision gives associations the authority to adopt rules with respect to the recording of meetings, however, the authority to enact rules is very narrow in scope:

1. The association is permitted to establish rules regarding only the placement and use of the equipment; and

2.  The member recording is required to provide notice that they are recording the meeting.

Association rules that reach farther than these two items violate the Property Owners’ Association Act according to a recent Determination issued by the Office of the Common Interest Community Ombudsman (“Ombudsman”).

 

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