Real Estate Law

Have Real Estate Law Questions? Ask a Real Estate Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Real Estate Law
This answer was rated:

Our condo board and management corp. claimed they needed at

least $2,000,000.00 to finance...
Our condo board and management corp. claimed they needed at least $2,000,000.00 to finance according to them 'mandated' new or updated sewer treatment plant. They aquired the loan prior to obtaining any bids for the job, stating it's easier to get the money before the bids are in. All condo owners have been paying for the loan for the past year, with each home owner paying up to $70.00 more per month for the next 15 years. We have yet to see any work done on the plant, as the board members claim they are waiting for the town to write the requirements. Is this fair? What are they doing with this money and or interest? We have over 40% of homeowners not paying thier association fees, which I believe why they obtained the loan.
Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 52 minutes by:
7/5/2013
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,498
Experience: Attorney and Real Estate broker -- Retired
Verified
Hello,

Thanks for visiting justanswer.com. I have read your question, and I understand your annoyance -- however, I'm not sure that I understand your question. You ask, Is this fair? and What are they doing with this money and/or interest?

Are you seeking a general commentary on whether or not the board's activities are typical?

Please clarify what you would like to know and I will be happy to try to help.

Thanks!
Ask Your Own Real Estate Law Question
Customer reply replied 4 years ago


Can the condo association take a loan for $2,000,000.00 for work they have no idea when they will start, how much it will cost and if and when the town will approve, and or make demands to have sewer treatment plant done. I have been an owner for 9 years and ever since I moved into complex they claim they need to update sewer plant. Last year was the first time they acted upon it, by obtaining the large loan. Also, could they use this money for normal condo expenses, maintence.

There is no specific statutory restriction the board obtaining a loan. However, the association board has a fiduciary duty to the members, and the failure to act upon well-informed business judgment creates individual liability for damages caused to association members. See Caprer v. Nussbaum, 36 AD 3d 176, 189 (2006).

If the board actions are generating unnecessary costs to the members, any member as an individual, or a group of members could sue the board for the breach of fiduciary and attempt to obtain damages from the board members as individuals. However, the damages would be payable to the association as a whole, not to the individuals who would bring the lawsuit. So, you could not directly recover your additional assessment fees. You would increase the net value of the association assets, and thereby, hopefully, reduce the assessment fees for everyone.

It seems to me that based upon how you describe the circumstances, the board appears to have borrowed this money for no particular reason, and it's costing everyone a small fortune to maintain the interest. All of which argues to payoff the loan and eliminate the debt (or, build the treatment plan).

You will need a competent lawyer, but perhaps you could settle the matter without legal action, and save litigation fees.

For a competent civil litigation attorney referral, see this link.

Please let me know if I can be of further assistance.
Ask Your Own Real Estate Law Question
Customer reply replied 4 years ago


is there a condo board association that i could write to

If you mean a government regulatory agency -- then "no" there is no such agency with control over the association's activities. This is purely between the homeowners and the association board.

You'll have to talk to the other homeowners and see if there is any interest in trying to push back against the association board.

Hope this helps.
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,498
Experience: Attorney and Real Estate broker -- Retired
Verified
socrateaser and 87 other Real Estate Law Specialists are ready to help you
Ask your own question now
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,498
39,498 Satisfied Customers
Experience: Attorney and Real Estate broker -- Retired

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

5,436 satisfied customers

17 years of legal experience including real estate law.

Barrister

Barrister

Lawyer

11,126 satisfied customers

17 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

7,785 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

7,559 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,207 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,925 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

< Previous | Next >

Related Real Estate Law Questions
My client is being sued by his Homeowner association and
My client is being sued by his Homeowner association and want him to sign a document that will authorized foreclosure. The Annual fees of the association are $250 and they are suing him for $5,000+ He… read more
Attyadvisor
Attyadvisor
Doctoral Degree
7,188 satisfied customers
Can a homeowners association deny a homeowner's application
Can a homeowners association deny a homeowner's application to plant trees within his property borders because it has a drainage easement where the trees will be planted? … read more
Barrister
Barrister
Lawyer
Doctoral Degree
11,126 satisfied customers
Can a homeowners' association own land? If so can a
Can a homeowners' association own land? If so can a partnership that currently owns the land transfer it to the HOA? How is it accounted for on the partnership's books? Since the HOA is not a 501(c)(3… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,440 satisfied customers
I just had a loss due to water damage. The homeowners
I just had a loss due to water damage. The homeowners insurance covered it. Will I have to pay income on the money the insurance paid me and will I need to claim it on the tax form? … read more
Attyadvisor
Attyadvisor
Doctoral Degree
7,188 satisfied customers
Can the treasury of our homeowners association invest some
Can the treasury of our homeowners association invest some of the money that the association has in CD'S or any other type of investment? … read more
socrateaser
socrateaser
Lawyer
39,498 satisfied customers
I live in and the community is in a homeowners association.
Good morning. I live in Virginia and the community is in a homeowners association. … read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
Rock Island Homeowners Association says I must clean my
Rock Island Homeowners Association says I must clean my cedar porch wood … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,440 satisfied customers
We have a homeowners association in our agricultural
We have a homeowners association in our agricultural subdivision, what would happen if I were to send a letter to them stating I am no longer a member of the association? … read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
7,785 satisfied customers
A homeowner in our association, is requesting contact
A homeowner in our association, is requesting contact information for our board and all contact information for the rest of the homeowners in our association. This sounds illegal, is it? … read more
Barrister
Barrister
Lawyer
Doctoral Degree
11,126 satisfied customers
Missouri homeowner files damage claim with insurance
Missouri homeowner files damage claim with insurance company, and, receives $150,000. Insurance check is written jointly to homeowner & servicer; signed by homeowner and sent to servicer for deposit. … read more
LegalGems
LegalGems
Juris Doctorate
10,748 satisfied customers
What right do I have against a homeowners association. I
what right do I have against a homeowners association. I trying to control water issues on my property from my 2 neighbor and their fighting me. … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I have lived in a homeowners association in Florida. The HOA
I have lived in a homeowners association in Florida. The HOA has both long term or residential and short term sections clearly defined. I live in the short term section, we pay more than 3 times the r… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Homeowner association of 16 units. What would be quorum.
Homeowner association of 16 units. What would be quorum … read more
Ray
Ray
Lawyer
Doctoral Degree
7,559 satisfied customers
A supposed homeowners association and the new builders that
A supposed homeowners association and the new builders that bought 5 lots went into an agreement to maintain a private road. Since they own the road the Parrish won't help and soon garbage mail or any… read more
Attyadvisor
Attyadvisor
Doctoral Degree
7,188 satisfied customers
What is the liability to a homeowners association for
What is the liability to a homeowners association for property that was dedicated to them? … read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
7,785 satisfied customers
I used my homeowners insurance for damages that fell into 3
I used my homeowners insurance for damages that fell into 3 event years in a row. I was kicked out of insurance. Had to buy through the State Reinsurance plan in Rhode Island. Rate doubled. Now, a yea… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Do homeowner associations have the legal authority to borrow
Do homeowner associations have the legal authority to borrow money from a lender to pay for improvements to common areas within the development they're associated with. … read more
P. Simmons
P. Simmons
Attorney
Doctoral Degree
35,345 satisfied customers
I am a member of a homeowners association and my question
I am a member of a homeowners association and my question relates to restrictive covenants. The association articles of incorporation have been established and in place for decades. We now would like … read more
Ray
Ray
Lawyer
Doctoral Degree
7,559 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x