The Condominium Form Of Ownership

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In Alabama, contractors and subcontractors performing work involving common elements of the condominium at the request and direction of a condominium association should be aware of unique laws applicable to their lien rights and the rights and remedies available to the unit owners in the condominium. Typically a declaration of condominium defines the common elements as the structural components of a building including the roof and exterior materials. However, a developer has great flexibility in deciding what portions of the property are designated as common elements, limited common elements and units.

Most contractors are familiar with the Alabama Mechanic’s Lien Statute set forth in Alabama Code § 35-11-210, et seq. The Alabama Mechanic’s Lien Statute sets forth procedures for a contractor to lien property in an effort to obtain payment for material or labor provided by the contractor, including strict procedural and notice requirements for furnishing a notice of intent to claim a lien, filing a verified statement of lien, and commencing a lawsuit to enforce the lien. When performing work on the common elements of a condominium, the question arises, who is the “owner” of the common elements that must receive notice? Unlike common areas in a subdivision, common elements in a condominium are not owned by the association. The common elements in a condominium are owned in common by all of the unit owners, each having undivided interest in the common elements as described in the declaration of condominium. Therefore, any lien attributable to work performed or materials supplied in connection with the common elements of the condominium should be filed against each individual unit in the condominium. For example, if a contractor performs a common element roof replacement in a condominium at a cost of $100,000, and the condominium contains one hundred units, the lien for the $100,000 should be filed against all one hundred units in the condominium. As set forth below, the Alabama Uniform Condominium Act of 1991 does not require payment of the entire $100,000 by a unit owner to obtain a release of the lien as it pertains to their specific unit.

Please see full Publication below for more information.

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Topics:  Condominium Associations, Condominiums, Contractors, Mechanics Lien, Subcontractors

Published In: Civil Procedure Updates, General Business Updates, Construction Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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