Serving on a condominium association board can be a rewarding way to help protect the community you live in and its property values. However, it also comes with significant responsibilities. Board members make decisions about assessments, maintenance, repairs, rule enforcement and other issues that directly affect residents.
Not all of those decisions will be popular with everyone, and some may lead to disagreements. Sometimes those disagreements escalate into litigation. Understanding the most common sources of condo association litigation can help boards identify potential problems before they escalate into expensive legal disputes.
Authority under Arizona law
Condo associations have the authority to adopt rules, collect assessments, regulate common elements and take legal action when necessary. Still, that authority is subject to Arizona law and the association’s governing documents.
One major source of conflict between associations and unit owners involves money. Associations depend on regular assessments to pay for insurance, landscaping, maintenance, repairs and other common expenses. When an owner falls behind, the association may need to pursue collection efforts.
Disputes may arise over things like:
- Whether an assessment was properly authorized
- The amount the owner actually owes
- Whether proper notices were provided
- Whether the association followed its governing documents
Boards need to maintain accurate financial records and follow statutory and procedural requirements when collecting assessments.
Enforcement of rules and CC&Rs (covenants, conditions and restrictions) is another common cause of disputes. Condo associations are responsible for enforcing the community’s bylaws and rules. This can become difficult if an owner believes the rule is unreasonable or rules are being enforced inconsistently.
Responsibilities and limitations
The association should have a consistent process for investigating alleged violations, providing required notices and imposing penalties. Inconsistent enforcement of rules can create additional legal risks. If the board routinely ignores a particular violation but suddenly takes action against one owner, that owner may challenge the enforcement decision.
Condo boards have substantial management responsibilities, but their authority is not unlimited. Litigation may arise when an owner claims that the board:
- Took an action that it was not authorized to take
- Failed to follow the declaration or bylaws
- Changed a rule without following required procedures
- Interfered with an owner’s rights
Before taking any significant action, boards should determine whether they have the authority to do so and whether they followed proper procedures.
If an owner threatens to sue the association, the board should take the threat seriously without assuming that litigation is inevitable. A legal representative can help the board evaluate the potential claim and explore whether the dispute can be resolved before costly litigation becomes necessary. Their assistance can help the board make informed decisions and protect the association’s interests.