Month: August 2007

Association’s Compliance Process Is Valid

Facts: Two association members were involved in a dispute over the height of trees along their adjoining properties. One member complained that his neighbor's trees blocked his view of a nearby mountain range, in violation of the association's governing documents. The complaining member brought a covenant violation petition against his neighbor according to the association's covenant compliance process. An outside arbitrator determined that six of the neighboring member's trees were too tall.

Association President Can’t Disburse Settlement Funds

Facts: A condo association sued to stop the developers from making changes to a governing document that would have altered the rights of the existing members. Before the trial began, a court had granted the association a temporary stop order against the developer as long as the association could post a $300,000 bond. Twenty-two association members agreed to pledge personal assets worth $230,000 to secure the bond. Four years later, the court ruled for the association and ordered the bond to be released.

Six Guidelines to Prevent Fraud, Embezzlement

Recent news stories of association fund thefts by board members or management companies may be causing concern in your community. In Colorado, the owner of an association's management company recently turned himself in to police for embezzling association money. At one time, he was the association's board president, and while he was in office, he started a management company to handle the association's management duties. Local police say that over a period of six years, the board president embezzled $42,819.46 in dues from the association.

Responsibilities When Appliances Cause Flooding in Condos

Q A member's washing machine hose burst in the middle of the night, flooding the neighbor's unit and the unit below. Does the condo association have a duty to get involved in a situation like this?

Getting Copyright Licenses for Music and Movie Nights

Q Our association is considering different activities to bring the community together. We are thinking of having a movie night or organizing an event with live music. Do we need to be worried about copyrights. Can an association get in trouble if it shows movies in the clubhouse or hosts a gathering where music is played?