Legal Question in Real Estate Law in Massachusetts
Condo Developer Problem
I live in an 11 unit complex an the builder (owning 25.18%) was sent to collections by our prior propterty manager (who he agreed to hire even though there was no turnover event) for not paying condo fees and an assessment for three units owned by the builder. The builder has since fired the property manager and is demanding that the Condo Association pay his legal fees ($6K). The builder has gone to the bank and taken money out of the Association account and is now looking for the rest of his money. We do not have enough in the account to pay the bills that are due (insurance, trash removal, electricity, etc.).
Can he just do what he wants with that account since he owns 25.18% of the building and there has been no turnover event? I'm so confused right now as are all of the other unit owners. The builder actually told me while on the phone with him that he can do whatever he wants with the building or the account. Is he right?
2 Answers from Attorneys
Re: Condo Developer Problem
He is not entitled to do whatever he wants and he owes a fiduciary obligation to the Association.
Without reading the agreements, it is difficult to know how much he can do. However, generally he can do a great deal provided he does not breach the rules or his fiduciary obligation.
Re: Condo Developer Problem
It is respectfully suggested that you and any like minded unit owners retain an attorney to review the condo agreement which controls your rights and those of the builder. Good Luck!
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