When Florida Homeowners Associations Have To Bring Claims against Developers
Recently, one of the largest home builders in the nation lost a $16.3 million judgment to a condo association after the judge found that it had engaged in deceptive practices, leaving the association in poor financial condition. The company—D.R. Horton—started developing the association—Majorca Isles Master Association in Miami Gardens—back in 2005, but decided to stop building when the recession hit. Because of this, many of the condo owners stopped paying their fees, resulting in a deficit for the association. In response, the directors appointed by Horton diverted funds to pay the expenses of the associations, breaching their fiduciary duty to the association, and ultimately shifting the economic loss of the company to the homeowners themselves by cutting services and amenities. Developer Obligations to Associations When Horton turned over management of all the associations to the homeowners in 2011, they had gaping holes in funding, leading to a Chapter 11 bankruptcy reorganization filing. The company also failed to keep detailed financial records and mischaracterized the income, recording unpaid assessments fraudulently as assets in order to give off the false appearance that the association was solvent, even though it was not. This case highlights that developers have an obligation of fairness and transparency when it comes to Florida homeowners associations, and if corporate greed gets in the way of this, the courts will hold them accountable. Developers are ultimately responsible for predevelopment turnover when it comes to homeowners associations. Florida’s Homeowner’s Association Law Florida Statute 720 governs claims brought by Florida homeowners associations against developers. Some of the more common claims involve construction defects, property disputes, and financial irregularities. Homeowners associations are empowered to bring claims on behalf of their members with regard to issues that are of “common interest.” Typically, an association will first obtain an approval of a majority of the voting interests at a members meeting. However, it is important to go over any procedural requirements with an experienced association attorney, as there are often specific requirements included in an association’s governing documents which must be complied with before a claim can be brought against a developer. In addition, under Florida law, all association funds held by a developer must be maintained separately in the association’s name, and developers cannot commingle any association funds with their funds or the funds of other associations. Experienced Florida HOA/Condo/Property Management Lawyers The Tampa & Sarasota homeowners and condominium association attorneys at HD Law Partners provide knowledgeable, experienced, and dedicated legal representation. Whether it is overseeing the everyday maintenance and contracts for a particular property or group of properties, or working to resolve a dispute and ensure that a homeowners or condo association is protected, we are here to work for you, and will ensure that you receive the professional legal services you deserve. Contact us today to set up a consultation. Resource: https://bizjournals.com/southflorida/news/2016/10/27/national-homebuilder-loses-16m-judgment-to-condo.html Tags: D.R. Horton, Florida Homeowners Association Law, Florida Homeowners Insurance Lawyer, Florida Homeowners Insurance Lawyers, HOA, Homeowners Association Sarasota, Tampa Condominium Association Attorney, Tampa Condominium Association Attorneys Posted in Homeowners Insurance | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us