WHAT SHOULD YOU EXPECT WHEN ENTERING A DEFECT LITIGATION SUIT?

By Darlys Walker      

Published August 29, 2018  

 

Most boards have never filed suit against anyone for anything more than a violation or delinquency issue. When faced with the decision to sue over construction defects, there are some key things to remember! Yes this coming from a tremendous amount of experience.

 

1.   Most common question is how long will it take to resolve?

The best answer is 2-3 years, plus! There are many steps to be taken and usually lots of parties are involved.

 

2.   Will my fees go up due to attorney fines?

The answer depends on the financial position of your community. In the majority of the cases I’ve seen the answer is yes.

 

3.   Can we use reserve funds to pay for the litigation?

Ask your legal counsel. Over the years I have had most attorneys say NO. But on two occasions they have said yes! Be sure to get their opinion in writing!

 

4.   Can we go ahead and make the necessary repairs?

Ask your legal counsel. Many declarations require that both sides have opportunity to have engineers and other experts perform inspections and destructive testing before repairs can begin.

 

5.   We don’t know what the boards are doing with the lawsuit, they don’t tell us anything!

Litigation is stressful for the board and owners alike. Most information is confidential between the board and legal counsel. By holding quarterly town hall meetings with owners, allowing the attorney to give a generic update will foster support for the board and lessen the stress and gossip!

 

6.   Do we have to disclose the lawsuit to potential purchasers?

YES! Have your attorney draft a letter for the owners to use should they choose to sell their home.

 

Remember, this process is going to take a while and the board has to come together to make many decisions for the betterment of the community.


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Darlys Walker, Founder and CEO of Condominium Concepts Management, Inc. (CCM), is recognized for her straight talk, subject matter expertise, and valued insights regarding real  

state management, leasing, and HOAs. Her company serves a diverse portfolio of properties, from 16-units up to 600 as well as large mixed-use developments.  

 

   From its beginnings in 2000, CCM has become a well-respected asset manager and now works with over 100 associations with 16,000 units served by over 300 employees. Darlys and her team deliver resources and responsiveness through six regional offices - in Orlando, Miami, Jacksonville, Charleston, Nashville and Atlanta.

  

   Darlys Walker is best known for her passion and precision, understanding that the only difference that matters in today's demanding marketplace is service delivery ... doing what is promised and what is right. She knows that every community serves two masters ... the property owner/developer and the resident/homeowner. "If we are not equally responsive to both, we are not doing our job," she states.  

 

   Her clients say it best: "Darlys really knows her stuff" ... "at the top of her profession and it shows in the caliber of her clients" ... "delivers quality resources that match up well with needs and expectations that are really rigorous."  

 

   She is a licensed Real Estate Broker in four states, holds an Associate's Degree in Marketing and has earned the Accredited Real Estate Manager designation from the Georgia Institute of Real Estate Management. Also she is one of few certified as a Lead-Based Paint Abatement & Removal Trainer in Georgia.

  

   Darlys Walker and her team have been selected to manage the condominium conversion process and day-to-day operations for many of the Southeast's most high-profile condominium communities including luxury high-rises, mid-rises and garden-style homes. Most recently she has been recognized as an expert in 're-versions' of communities from condominiums to leased homes, as well as repositioning projects. A visionary and a tireless perfectionist, Darlys demonstrates hands-on leadership, working individually with each client and staff associate to achieve defined business outcomes and satisfaction.  

  

  For more information about Darlys Walker and Condominium Concepts Management, Inc. please visit www.condominiumconcepts.com.


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