Homeowners' Association

News & Analysis as of

Consumer Financial Services Newsletter - May 2016

Debt Collection Letters Now Have a Safe Harbor In The Second Circuit - Avila v. Riexinger & Associates, LLC, 15-1548, --- F.3d ---- , 2016 WL 1104776 (2d Cir. March 22, 2016) - The U.S. Court of Appeals for the...more

Mortgage Industry Scores Big Nevada Supreme Court Win in Continued Battle over HOA Super-Priority Liens

The mortgage lending community was dealt a serious blow in September 2014, when the Nevada Supreme Court held that an HOA’s foreclosure of its nominal super-priority lien could extinguish a first lien interest in SFR...more

Developer Control of Homeowner Associations Could Diminish in South Carolina

State Committee at work; legislation pending - The South Carolina 2015-2016 Appropriation Act established the "South Carolina Committee on Homeowners Associations." Thirteen individuals, consisting of lawmakers,...more

Florida Appellate Court Bolsters Statutory HOA Safe Harbor

A significant opinion from the Florida Third District Court of Appeal further clarifies the extent of the Florida statutory homeowners association (HOA) “safe harbor.” In the end, entities that obtain title through judicial...more

Massachusetts Supreme Judicial Court Rules On Lien Priority Between Condominium Associations and Mortgage Lenders

After nearly a decade of ongoing litigation, the Massachusetts Supreme Judicial Court (SJC) issued a decision in Drummer Boy Homes Association v. Carolyn P. Britton, No. 11969 slip op. (Mass. March 29, 2016) regarding the...more

Nevada Supreme Court Holds that Foreclosure Of HOA Lien Extinguishes Equal Priority HOA Lien.

In Nevada’s master-planned communities it is common for one home to be in multiple homeowners’ associations. In such cases there is generally a master association for the master-planned community and then sub-associations for...more

And in this corner: Judicial referees as alternatives to juries in California

More than 10 years ago, California’s highest court held that pre-dispute contractual jury waivers were not enforceable. However, the Court directed contract parties to two safe havens from juries: arbitration and judicial...more

Some, But Not All: How the North Carolina Planned Community Act affects Pre-1999 Planned Communities

In 1999, the North Carolina General Assembly enacted the North Carolina Planned Community Act ("Act") as Chapter 47F of the North Carolina General Statutes. The Act was intended to establish certain rights for property...more

The New Texas Two-Step: Construction Defect Litigation by Condominium Owners’ Associations

On June 17, 2015, Texas adopted amendments to the Texas Uniform Condominium Act by requiring condominium unit owners’ associations (“Association”) to take specified procedural steps prior to initiating a construction defect...more

Intervention by Individual Homeowners Deemed Timely

Ziani Homeowners Association v. Brookfield Ziani LLC, et al. - Court Of Appeal, Fourth Appellate District, Division Three - (December 22, 2015) - The Court of Appeal considered the issue of timeliness of a...more

Amendment to Illinois Mechanics Lien Act Authorizes Bonding Over of Mechanics Liens Claims

As of January 1, 2016, an amendment to the Illinois Mechanics Lien Act, 770 ILCS. 60/38.1, allows parties with an interest in real estate to substitute an eligible surety bond for a claim for mechanics lien as security for...more

Nevada State Court Ruling on Application of HERA to HOA Foreclosure Sales Holds Promise for Lenders and GSEs

The first Nevada state court ruling on the federal Housing and Economic Recovery Act (HERA) holds that a deed of trust owned by a GSE cannot be extinguished by a homeowners’ association’s (HOA) foreclosure sale, a promising...more

The Historic Drought Has Killed Your Lawn, Will It Do The Same To The Construction Industry?

After three years of a historic drought, Californians are now subject to mandatory water rationing, bans on washing cars, and water “only on request” at restaurants. In 2015, California saw a number of new laws, regulations...more

New Year, New Laws for Real Property Practitioners

Were you able to keep track of the new legislative changes that may affect your real property practice? Don’t worry, we did and here are some key changes every California real property lawyer needs to know....more

Denver City Council Passes Construction Defect Litigation Reform Ordinance

After successive failures to pass similar legislation at the state level, the Denver City Council is following Lakewood and other municipalities to pass reforms to curb construction defect litigation. Designed to address...more

Did 19 Law Professors Get The Business Judgment Rule Wrong?

In yesterday’s post, I wrote about the amicus curiae brief filed by 19 law school professors in Friedrichs v. California Teachers Ass’n, a case now pending before the United States Supreme Court.  Being a California corporate...more

Constitutional Clarification for Nevada HOA Super-Priority Foreclosures

Since the Nevada Supreme Court’s infamous decision in SFR Investments Pool 1, LLC v. U.S. Bank, N.A. in September 2014, the mortgage community has continued to fight to save senior deeds of trust from extinguishment due to an...more

The Importance Of 'The' In Crafting Insurance Exclusions

A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage...more

California Court Considers Reimbursement of Legal Fees Under D&O Policy

In its recent decision in Clark v. Travelers Cas. Ins. Co. of America, 2015 U.S. Dist. LEXIS 114877 (C.D. Cal. Aug. 28, 2015), the United States District Court for the Central District of California had occasion to consider...more

Idaho Real Estate & Development Law Update: In Idaho, CC&R Amendments May Add New Burdens, Not Just Modify Existing Ones

In the recent case of Virgil Adams v. Kimberley One Townhouse, released June 22, 2015, the Idaho Supreme Court covered some new ground and revisited some old ground. The case involved a townhouse subdivision governed by a...more

Courts, States Continue to Wrestle with Homeowners Association Assessment Liens

The circumstances under which a condominium or homeowners association (HOA) lien for unpaid assessments may wipe out a lender’s mortgage lien continues to evolve across the country. As noted in our previous alerts regarding...more

How Nevada SB 306 and Court Rulings Have Changed the Foreclosure Landscape - Counsel's Corner with Jon Patterson

What changes were brought about to the HOA foreclosure sale landscape by the passage of SB 306 in Nevada? SB 306 contained a number of important revisions to Nevada’s super-priority lien statute that will provide...more

Respect the Remedy of Rescission in Real Estate Disputes

Claims seeking damages for broken real estate deals may be more common, but the remedy of rescission often provides the most bang for the buck. In a claim for damages due to breach of contract, the plaintiff affirms...more

For “At-Issue Waiver,” The Best Defense May Not Be An Affirmative Defense

As this blog has repeatedly documented, it can be hard for insurers to assert the attorney-client privilege in the context of bad faith litigation. One difficulty arises in states that enforce a presumption against the...more

HOA Super Priority Legal Battles Continue in the Silver State: What Senate Bill 306 Means for Nevada HOAs, Lenders and Homeowners

In 1991, the Nevada Legislature enacted the Uniform Common-Interest Ownership Act (UCIOA) which had been promulgated by the National Conference of Commissioners on Uniform State Laws (NCCUSL) (the Statute). This law provides...more

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