If You Purchase a House at an HOA Lien Foreclosure, Are You Entitled to Excess Sale Proceeds?
February 03, 2020 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogThat pesky excess sale proceeds statute, A.R.S. § 33-727, is making waves again. We previously blogged about this statute here. In the prior post, we explained that excess sale proceeds (i.e., a foreclosure sale price greater than the lien being foreclosed) must be used to pay other lien creditors, in full, before the owner receives anything. Recently, the Arizona Court of Appeals held that creditors also take excess sale proceeds before the person who purchased the property at foreclosure. The case, Vista Santa Fe Homeowners Association v. Millan, No. 1 CA-CV 18-0609 (Ct. App. Oct. 15, 2019), is discussed below.
The Facts
In Vista Santa Fe, an individual bought a home secured by a first and second deed and trust. The homeowner defaulted on assessments owed to the Vista Santa Fe Homeowners Association (the “HOA”), and the HOA commenced an action to foreclose the resulting assessment lien. At the time, the HOA was owed approximately $14,000.
Patterson Commercial Land Acquisition & Development, LLC (“Patterson”) purchased the property at the HOA’s sheriff’s sale for $42,000. After satisfying the HOA’s lien, the sheriff deposited the excess sale proceeds, in the amount of approximately $28,000, with the clerk of the court.
Both Patterson and the second deed of trust holder, Bank of New York Mellon (“Bank”), submitted claims for the excess sale proceeds.[1] The trial court awarded the money to the Bank, and Patterson appealed.
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Ben Reeves, Snell & Wilmer
Know your Obligations: Colorado’s Statutory Expansions of the Implied Warranty of Habitability Are Now in Effect
November 04, 2019 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogThe Colorado legislature had a busy session this year. Among the several significant bills it enacted, HB1170 strengthens tenant protections under the implied warranty of habitability. It became effective on August 2, 2019, so landlords and tenants alike are now subject to its requirements.
The bill makes numerous changes to Colorado’s implied warranty of habitability, and interested parties should review the bill in detail. Landlords in particular may want to consider retaining legal counsel to make sure they have proper procedures in place to promptly deal with any habitability complaints within the new required timelines. This posting is not intended to provide a comprehensive guide to the changed law, but simply to highlight some of the most significant changes.
With that caveat, landlords and tenants should be aware that as of August 2, 2019:
- The following conditions are now deemed to make a residential residence uninhabitable for the purposes of the implied warranty of habitability:
- The presence of mold, which is defined as “microscopic organisms or fungi that can grow in damp conditions in the interior of a building.”
- A refrigerator, range stove, or oven (“Appliance”) included within a residential premises by a landlord for the use of the tenant that did not conform “to applicable law at the time of installation” or that is not “maintained in good working order.” Nothing in this statute requires a landlord to provide any appliances, but these requirements apply if the landlord either agreed to provide appliances in a written agreement or provided them at the inception of the tenant’s occupancy.
- Other conditions that “materially interfere with the tenant’s life, health or safety.”
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Reprinted courtesy of Luke Mcklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com
Thanks for the Super Lawyers Nod for 2019!
May 20, 2019 — Christopher G. Hill - Construction Law Musings
It is with humility and a sense of accomplishment that I announce that I have been selected for the third straight year to the Virginia Super Lawyers in the Construction Litigation category for 2019. Add this to my recent election to the Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer elected lists.
So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the 5% of Virginia attorneys that made this list for 2019.
The full lists of Virginia Super Lawyers will appear in the May edition of Richmond Magazine. Please check it out. Read the court decision
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Mr. Hill may be contacted at chrisghill@constructionlawva.com
Manhattan Gets First Crowdfunded Condos
September 03, 2015 — David M. Levitt & Oshrat Carmiel – Bloomberg
New York’s first real estate project financed significantly though crowdfunding is set to open, a step forward for a nascent investing model that has yet to prove itself in commercial property.
AKA United Nations, an extended-stay hotel-condominium on East 46th Street near Second Avenue, will start taking guests Sept. 10. Sales of the suites have already begun. Of the $95 million it cost to buy and fix up the existing hotel, $12 million was raised from online pledges.
It’s “the first ever crowdfunded building in New York coming to completion, from A to Z,” said Rodrigo Nino, chief executive officer of Prodigy Network, which is gut-renovating the building with partners. Until now, “everything has been about promises.”
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Risky Business: Contractual Protections in the 'New Normal'
January 04, 2023 — Daniel Lund III - Construction Executive
The point of contracts is to create certainty to avoid litigated or arbitrated disputes. Still, the various parties in the construction process may have different risk tolerances. For example, general contractors are often characterized as “risk-tolerant.” That risk, though, is usually calculated by the contractor internally, outside the terms of the written contract, based on an assumption that the contractor can get the work done more cheaply and more quickly than the owner anticipated. Project owners typically want and expect close-to-absolute certitude—absolutely as to cost—in their construction contracts. The standard fixed-price or lump-sum construction contract is geared toward protecting that interest.
Post-COVID-19, however, the discussion in the industry suggests that all bets are off when pricing and agreeing to construction work. Labor and materials shortages have sent owners and their design consultants backpedaling when general contractors pursuing a fixed-price contract seek contractual concessions that “un-fix” the price.
Reprinted courtesy of Daniel Lund III , Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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The Anatomy of a Construction Dispute- The Claim
December 02, 2015 — Christopher G. Hill – Construction Law Musings
A new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.
In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract.
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com
Arizona Court Cites California Courts to Determine Construction Defect Coverage is Time Barred
December 30, 2013 — CDJ STAFF
Construction defect claims in an Arizona community are time barred and so the judge had determined that National Fire & Marine Insurance is not liable for coverage. National Fire claimed that while there was no Arizona case law concerning statutes of limitations for equitable contributions by insurance carriers, the court agreed that “its position is directly supported by cases from other jurisdictions.”
In the underlying construction defect case, Steadfast Insurance had settled with homeowners over allegations of construction defects. National Fire was a co-insurer and declined coverage. National Fire’s citing of two California cases was not unique for the Arizona courts. Other Arizona cases cited the same two California cases.
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EEOC Issues Anti-Harassment Guidance To Construction-Industry Employers
July 22, 2024 — Christopher Kelleher & Andrew Scroggins - The Construction Seyt
Seyfarth Synopsis: The Equal Employment Opportunity Commission (“EEOC”) has issued guidance tailored to the construction industry regarding compliance with anti-harassment laws. This lines up with our prediction in early 2024 that the EEOC had put the construction industry squarely in its sights. The guidance is important for construction-industry leaders and employers to understand to prevent and remedy workplace harassment, and to avoid potential harassment liability.
On June 18, 2024, the EEOC issued its Promising Practices for Preventing Harassment in the Construction Industry. This guidance provides key recommendations that construction-industry leaders and employers should consider implementing to prevent and address harassment in the workplace, and avoid being the target of the EEOC’s enforcement efforts. The guidance is intended to supplement the EEOC’s Strategic Enforcement Plan (“SEP”) for fiscal years 2024-2028, which provides direction on the EEOC’s current objectives, principles, and enforcement efforts – among them, increasing diversity in the construction industry and remedying harassment. (We’ve written previously about the proposed and final SEP.)
Reprinted courtesy of Christopher Kelleher, Seyfarth and Andrew Scroggins, Seyfarth
Mr. Kelleher may be contacted at ckelleher@seyfarth.com
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