ABA Family Legal Guide

Home Ownership

Shared Ownership: Condos and Condominiums

Handling Problems

What can I do if I have a problem with the developer of a condominium?

In an increasing number of cases, condominium associations have sued their developers over shoddy construction, breach of contract, negligence, or fraud. These lawsuits are complex, time-consuming, and expensive, often involving hundreds of people and millions of dollars. But the law expects a developer who cuts corners on construction or breaks promises to the unit owners to make up for the damage.

If only your unit is involved in the problem, it's up to you to engage a lawyer and try to settle the matter out of court, if possible. But if the problem involves common areas or common funds, the association may assess all unit owners to pay its legal fees in pursuing the developer. In some cases, the developer may agree to arbitration to save the time and expense of a lawsuit. The important thing, though, is to act quickly, because the longer you wait, the harder it is to find witnesses or collect a judgment. In many states there is a limited time, sometimes as little as one to three years, to bring a lawsuit against the developer for breach of its warranties.