Associations facing repair projects are often given the option of entering into a guaranteed maximum contract or G-Max contract with their contractor. These contracts are common for repair projects, whether the repairs are required because of defects and damage or because the component is at the end of its useful life. The implication that a guaranteed maximum contract caps the maximum amount your association will have to pay sounds great and can be a useful method of controlling costs. But, you should be aware that the guarantee is not absolute. read more

Recent experience as litigation and general counsel for numerous associations who are currently tackling significant repairs suggests a couple of common pitfalls. read more

You live in a condominium association and happily (ok, probably not "happily") pay your dues each month. Your board has diligent members and your association is well insured. What could go wrong? Well, lots can go wrong, unfortunately. Life is full of unexpected twists and turns. A slip and fall accident might find the association on the wrong side of a lawsuit. Or, the association might discover hidden property damage that must be repaired. There is a myriad of unforeseen liabilities that an association may incur. read more

Last week, we discussed how delinquencies affect owners and the lots or units they own. This week, we discuss the effect of bankruptcy, sales and foreclosures on the personal obligation or liens. Generally speaking, an owner's bankruptcy affects the owner's personal obligation to pay the amounts becoming due on or before the bankruptcy filing date, but does not impact the Association's lien against the unit or lot, unless additional steps are taken in the bankruptcy case. If the owner wants to try to remove the lien as part of the bankruptcy case, the Association is entitled to notice of the motion and can object. If an Association receives a bankruptcy motion, legal counsel should be contacted immediately to discuss the Association's options. read more

Under state law in Washington and Oregon, Condominium and Homeowner Associations have the authority to adopt and amend budgets, and levy and collect assessments from owners for the common expenses. But it can be confusing what happens when an owner does not pay the assessment. This two-part article discusses the personal obligation of the owner to pay the assessment and the lien that is created when the assessment is not paid. Next week will discuss the effects of sales, foreclosures and bankruptcy on both the personal obligation and the lien. read more