• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Condo Conflict of Interest in Pennsylvania

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

The_Marshall

Junior Member
We own a condo in a mixed use building consisting of 27 residential & 5 commercial units.
All of the residential units have been sold, two of the commercial units are sold, and the remaining three unsold commercial units are owned by the Builder/Developer. The three commercial units have not been completed and no certificates of occupancy have been issued by the building department. The Builder/Developer used her percentage of voting power, (which is quite strong based on square footages), to elect herself to a position on the Condo Association Executive Board after the release of Declarant control to unit owners, is currently acting as the Property Manager for the building, and she acted as the RE Seller/Buyer's Agent for most of the units. In addition, the President of the Condo Association is another owner of one of the commercial units, but is also the Architect who designed the building.
Obviously, their positioning themselves on the Board has left the remaining Owners with virtually no power to remedy numerous issues that exist in the building. They amended the bylaws, deleted some ammenities that were included at point of sale, have not completed common area elements, have code violations in several units, have severe noise transference issues between units, have not been performing adequate cleaning or maintenance, etc...

Does anyone know if this would constitute a conflict of interest and if so, under what law or act could it be enforced?

Should the Builder/Developer be allowed voting rights since the units they own are not completed?

I have read the PA Uniform Condo Act, but there are not any direct references to this situation.

Seems like a monopoly to me...
Any help would be greatly appreciated!
Thanks!
 
Last edited:


HomeGuru

Senior Member
We own a condo in a mixed use building consisting of 27 residential & 5 commercial units.
All of the residential units have been sold, two of the commercial units are sold, and the remaining three unsold commercial units are owned by the Builder/Developer. The three commercial units have not been completed and no certificates of occupancy have been issued by the building department. The Builder/Developer used her percentage of voting power, (which is quite strong based on square footages), to elect herself to a position on the Condo Association Executive Board after the release of Declarant control to unit owners, is currently acting as the Property Manager for the building, and she acted as the RE Seller/Buyer's Agent for most of the units. In addition, the President of the Condo Association is another owner of one of the commercial units, but is also the Architect who designed the building.
Obviously, their positioning themselves on the Board has left the remaining Owners with virtually no power to remedy numerous issues that exist in the building. They amended the bylaws, deleted some ammenities that were included at point of sale, have not completed common area elements, have code violations in several units, have severe noise transference issues between units, have not been performing adequate cleaning or maintenance, etc...

Does anyone know if this would constitute a conflict of interest and if so, under what law or act could it be enforced?

Should the Builder/Developer be allowed voting rights since the units they own are not completed?

I have read the PA Uniform Condo Act, but there are not any direct references to this situation.

Seems like a monopoly to me...
Any help would be greatly appreciated!
Thanks!
**A: it sounds like a conflict and it is but there is no law against such things and your condo docs actually allow it. I would band together with other residential owners and hire an attorney to help. Search condo developer transition and read more.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top