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Our condominium complex is in need of major repairs. The HOA…

Customer Question
Our condominium complex is...

Our condominium complex is in need of major repairs. The HOA is getting competitive bids, but they are not being transparent about the process. Information is being leaked to the community about the cost, which appears to me to be astronomical. Were we to have these repairs done on a house, the cost per unit, at the going rate, would be half the rumored amount. The board claims it is illegal for them to be transparent about the bids, and that their decision will be final. We homeowners are facing an assessment in the neighborhood of $40K - $50K per unit, a whopping sum for roof, gutter and siding replacement. We have also been told that there will be no vote, that the assessment will be mandated at their sole discretion. My Questions: Are homeowners within their rights in Oregon to insist on transparency? What are our rights? (Briefly, of course.)

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state the association is in?

Oregon

Lawyer's Assistant: Has any paperwork been filed?

Not sure what you mean.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Not at the moment.

Submitted: 7 months ago.Category: Real Estate Law
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Answered in 5 minutes by:
1/13/2018
Real Estate Lawyer: Legal Eagle, Lawyer replied 7 months ago
Legal Eagle
Legal Eagle, Lawyer
Category: Real Estate Law
Satisfied Customers: 14,357
Experience: Licensed to practice before state and federal court
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today. Because I want to provide you with the most accurate answer possible, do you mind if I take a moment to review your question?

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only.

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Customer reply replied 7 months ago
of course.
Real Estate Lawyer: Legal Eagle, Lawyer replied 7 months ago

Great, thank you! Bear with me a moment while I review…

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Real Estate Lawyer: Legal Eagle, Lawyer replied 7 months ago

I'm so sorry to hear about your situation. That sounds like a very difficult situation to be in. So, generally, OR law requires that the HOA be transparent about their financial dealings, but it is usually required that they make their financial dealings available at least once per year. They usually are required to just make this available, but they aren't required to provide this information to you directly, like via email for example. This means that you may have to go the route of contract law.

This appears to be a violation of the implied covenant (promise) of good faith and fair dealing if they are not being open with the bids considering the very high cost of your asessments. Under the Uniform Commercial Code Section 1-304, every contract comes with implied promises from both parties that they are going to be acting fairly toward one another. The failure of one party to act fairly toward other can result in a breach of contract. There’s a site that I’ve used in the past where you can find a good template for advising of a breach of contract. It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If this doesn’t work, sadly, the only other option is to either go through an informal mediation or file a lawsuit in your local court. This website is also pretty cool because you can just purchase, download, and go. Click here to get started.

What other questions did you have for me today?

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