Condominium Risk Management Checklist
Posted on Aug. 28, 2012

Condominium projects present extra risk for architects, engineers, contractors, and developers alike.  Unfortunately, these project participants often overlook how they can easily manage their risk through the condominium documents, including the CC&Rs and bylaws.  Following are summaries of some provisions that can be written into the documents to help protect against future claims by the condominium home owners association.  Because the provisions help all of the participants, there is no good reason for a developer to balk at including them in the condominium documents.

  • Alleged defects affecting 2+ units must be brought by the HOA with a supermajority (75%+) vote of members
  • Unit purchasers are given the opportunity to inspect the unit prior to closing and must sign a certificate of satisfaction with its condition
  • Unit purchasers are provided with a maintenance and repair manual for their unit
  • A Certificate of Merit from an independent professional is an express prerequisite to litigation
  • Design professionals, contractors, and the developer have the right to notice of alleged defects and an opportunity to cure prior to litigation
  • A waiver of subrogation in favor of design professionals, contractors, and the developer
  • A waiver of consequential damages in favor of design professionals, contractors, and the developer
  • The right of the developer to buy back a unit at the original purchase price if there are alleged defects
  • An annual maintenance budget with sufficient funding and replenishment to cover likely maintenance needs (for example, snow removal)
  • An annual walkthrough by design professionals, contractors, and the developer with the HOA maintenance personnel during the statute of limitations period
  • A time limit shorter than the statute of limitations on bringing claims against design professionals, contractors, and the developer
  • A supermajority vote of the HOA member is required to change any bylaws or CC&Rs
Construction Law
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About Adam

Adam
Attorney Adam T. Mow

Adam is a trusted resource for architects, engineers and other members of the construction industry in litigation, risk management, contract negotiations and mechanics’ liens. Adam is also a licensed architect and a past president of the Utah chapter of the American Institute of Architects. He has been elected by his peers to the Utah Legal Elite since 2009.

Awards and Recognition

AV Rating

Excellence in the Study of Architecture, American Institute of Architects Certificate of Merit, 1999

CALI Award for Excellence in Mediation and Advanced Negotiation, 2003

Community Mediator of the Year, Utah Dispute Resolution, 2007

Graduate of the Last Decade, Ball State University, 2008

Utah Business Magazine, Legal Elite, 2009-Present

Mountain States Rising Stars (Construction Litigation), 2009-Present