Homeowners Suits Against Community Associations
The relationship between a homeowner and their community association has been increasingly defined in litigation in recent years, due to the rapid growth of common interest communities and the issues being presented to the courts. The community association is usually an incorporated entity operating under corporate nonprofit status. The community association was created by the developer/declarant for
the purpose of managing the common interest community. The community association is funded by dues or assessments contributed by the individual unit owners (or members) and is run by an Executive Board, Board of Managers, Trustees or a Board of Directors composed of unit owners who typically serve as volunteers. The community association is a separate legal identity and may sue and be sued independent of its members. Courts have held that even unincorporated community associations may be sued by homeowners. See Murphy v. Yacht Cove Homeowners' Association, 345 S.E.2d 709 (S.C. 1986).
Prevailing law in most states views the relationship between a community association and a homeowner as being analogous to the relationship between a landlord and tenant. Like a landlord, the community association is held responsible for the maintenance of those areas over which it exercises dominion and control. In a common interest community, these areas will usually be the "common areas," "common elements" or those areas outside of the individual units but within the common interest community.
The purpose of this presentation is to identify and set forth several areas where homeowner rights have been recognized by various appellate courts from across the country, and to note some recent statutory developments. Significantly, the cases reviewed and summarized in this paper generally involve the community association's management and performance of its assigned functions.
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the purpose of managing the common interest community. The community association is funded by dues or assessments contributed by the individual unit owners (or members) and is run by an Executive Board, Board of Managers, Trustees or a Board of Directors composed of unit owners who typically serve as volunteers. The community association is a separate legal identity and may sue and be sued independent of its members. Courts have held that even unincorporated community associations may be sued by homeowners. See Murphy v. Yacht Cove Homeowners' Association, 345 S.E.2d 709 (S.C. 1986).
Prevailing law in most states views the relationship between a community association and a homeowner as being analogous to the relationship between a landlord and tenant. Like a landlord, the community association is held responsible for the maintenance of those areas over which it exercises dominion and control. In a common interest community, these areas will usually be the "common areas," "common elements" or those areas outside of the individual units but within the common interest community.
The purpose of this presentation is to identify and set forth several areas where homeowner rights have been recognized by various appellate courts from across the country, and to note some recent statutory developments. Significantly, the cases reviewed and summarized in this paper generally involve the community association's management and performance of its assigned functions.
Read more
