| Q. | Q. What type of statutory protection does the Oregon Condominium Act provide Homeowners Associations against defective construction? |
| A. | Under the Oregon Condominium Act, ORS Chapter 100, a developer (Declarant) provides an express warranty against defects in the plumbing, electrical, mechanical, structural, and all other components of the newly constructed units and common elements. This warranty is found at ORS 100.185(1). http://www.leg.state.or.us/ors/100.html
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| Q. | Before filing a lawsuit against the developer, what procedure must be followed? |
| A. | ORS 701.565 provides certain notice requirements that must be met before a construction defect action may be commenced. http://www.leg.state.or.us/ors/701.html
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| Q. | How long does a condominium owners’ association have to file a lawsuit against the developer (Declarant) for breach of the statutory warranty? |
| A. | ORS 100.185(2) contains the time periods for notifying the developer (Declarant) of breaches of the statutory warranty. http://www.leg.state.or.us/ors/100.html
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| Q. | How are most construction defect claims resolved? |
| A. | The vast majority of construction defect claims are resolved through a mediation process. This process involves the use of a mediator, typically a retired judge or attorney, who assists the parties eliminate or narrow disagreements in order to reach an agreed settlement, negotiated by the parties.
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| Q. | How can I learn more about the Oregon Condominium Act? |
| A. | The Oregon Condominium Act, ORS Chapter 100, includes important consumer protections for condominium associations and owners. For more information about the Oregon Condominium Act, visit http://www.leg.state.or.us/ors/100.html
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| Q. | Are there different requirements for filing claims for homeowners’ associations that are not condominiums? |
| A. | The Oregon Condominium Act does not apply to claims by non-condominium homeowners’ associations. In June 2006, The Oregon Court of Appeals issued an important decision regarding a homeowners’ association’s ability to bring suit on behalf of its owners. The case was Quail Hollow West Owners Association v. Brownstone Quail Hollow, LLC et. al and may be viewed at the following link: http://www.publications.ojd.state.or.us/A125874.htm
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| Q. | Are there statutory requirements for Homeowners Associations to maintain their condominiums or townhomes? |
| A. | Yes, in 2006, the legislature modified its statutes requiring annual reserve studies to include a requirement for a 30 year maintenance plan with annual updates that provide for the maintenance, repair and replacement of the common elements and association property. These statutes are located at ORS 100.175 and ORS 94.595. Many reserve study analysts are recommending a building envelope investigation as a pre-requisite to preparing a 30 year maintenance plan.
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| Note: The above answers and excerpts are for informational purposes only and do not constitute legal advice. Any person or association facing construction defect or homeowners association issues should consult with qualified legal counsel.
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