- Written by Lou Genovese
By: Gary M. Daddario, Esq.
Pursuant to a not often discussed provision of New Hampshire law (R.S.A. 356-B:70) a perpetual committee exists for purposes of advising the New Hampshire legislature on the laws relating to condominiums and homeowners associations (the “committee”). The committee is comprised of members of the legislature. As President-Elect of the CAI New Hampshire Chapter, I have had occasion to attend some of the recent public hearings of the committee. The committee intends to finalize recommendations and draft legislation for changes in R.S.A. 356-B within the next few months. I offer the following information regarding discussions from the public hearings and expectations of the potential proposed legislation. This is not a summary of the potential proposed legislation, as the same has neither been completed nor released. Further, this article is for informational purposes and conveys the opinions of its author. It is not meant to convey the position of CAI New Hampshire with respect to the matters mentioned herein.
A subject high atop the list of the committee’s priorities is the establishment of a licensing system for property managers. The committee is under the impression that the volume, variety and severity of the complaints received alleging improprieties by property management agents in New Hampshire establishes a condition that must be addressed. Licensing would likely be linked with educational requirements for initial applicants and continuing educational requirements for renewals. Licensing will likely take place on an individual basis, meaning that a company license will not serve to cover the various property managers employed by the company. Some New Hampshire property managers have expressed support for such a licensing system. These managers believe that the education and training linked to the licensing system will serve to increase the overall professionalism of the industry.
Also high on the priority list of the committee is the establishment of a “grievance board”. This board would not undertake the process of determining the outcome of unit owner disputes but rather of determining whether or not the dispute possesses sufficient merit to warrant legal proceedings. The board is envisioned as being comprised of a variety of members including legislators, an attorney and unit owners. The unit owner members would be from a variety of types of New Hampshire condominiums and home owners associations. Some members of the board would be appointed by the Governor of New Hampshire and others would come from other sources. Those in the industry will likely find it hard to imagine how such a board, once “open for business”, will not be consistently overwhelmed with unit owner complaints.
Other contemplated provisions appear to be ideas aimed at readjusting the balance of leverage between unit owners and associations. For instance, there has been mention of a provision which would impose penalties on association boards for circumventing or manipulating the association’s bylaws without proper involvement of the community. Another would award legal fees to the prevailing party in a dispute between a unit owner and the association. While a “level playing field” has a certain appeal on its face, one wonders whether such provisions will result in an increase in complaints and litigation that associations are forced to confront.
As set forth above, the committee continues to work on these matters. Stay tuned regarding the actual proposed legislation and the position of CAI New Hampshire, both of which will be fully developed in the coming months.Add a comment
- Written by Lou Genovese
By: Charles A. Perkins, Jr.
The case entitled Richard G. MacDonald v. Old Republic National Title Insurance Company, et al, is an interesting Federal Court Decision that deals with what one would think is a clear breach of contract and tort which would render the Defendant, Old Republic National Title Insurance, liable for a title insurance issue.
In this case, an individual named MacDonald delivered $135,000 to a person for unit mortgage loans arranged for by said person. As security for the loan, MacDonald was granted a first mortgage affording to encumber three (3) condominium units. Further, to ensure validity, enforceability and priority of the purported mortgages, MacDonald purchased and received three (3) title insurance policies issued by Old Republic.
Old Republic moved to dismiss Count III of MacDonald’s Complaint which was brought against Old Republic for failing to conduct a competent search of title and creating liability under the New Hampshire Revised Statute Section, 416-A:6. He also brought a claim for liability for negligence.
The Court went through a lengthy analysis and indicated that a title insurer has a common law duty to the insured and MacDonald may bring his claim for negligence against Old Republic. The Court also found that MacDonald was allowed to bring the statutory standard of conduct for his actions of negligence and that the economic loss doctrine did not apply.
They reserved the right to certify this question to the New Hampshire Supreme Court in the event the resolution of Count III ultimately determines or affects MacDonald’s recovery in this matter.Add a comment
- Written by Lou Genovese
By: Fredrick J. Dunn, Esq.
In early December, the Massachusetts Appeals Court affirmed a 2008 decision of the Superior Court in the case of NRT New England, Inc. d/b/a Coldwell Banker Residential Brokerage v. Ashby C. Moncure, 24 Mass. L. Rep. 181 (2008). In question was the enforceability of the liquidated damages clause within the terms of a Purchase and Sale Agreement. In March 2004, the defendant and Seller, Ashby C. Moncure (“Moncure”), contracted with Coldwell Banker to list certain real estate. Subsequently, a Purchase and Sale Agreement was executed by Moncure and the Buyer, Plain Road. At that time, Plain Road placed a deposit of $92,500.00 with Coldwell Banker to be held in escrow. The terms of the Agreement contained a standard liquidated damages clause as follows:
“If the Buyer shall fail to fulfill the Buyer’s agreements herein, all deposits made hereunder by the Buyer shall be retained by the Seller as liquidated damages, as Seller’s sole and exclusive remedy, without further recourse hereunder, in equity or at law.”
On the day of the closing, Plain Road failed to appear and the transaction came to a halt. Coldwell Banker did not release the deposit monies to Moncure and instead held the funds for some time. Coldwell Banker then acted as agent for Plain Road in a subsequent unrelated transaction. Upon the completion of that transaction, Plain Road owed Coldwell Banker a brokerage commission. Coldwell Banker agreed to an assignment from Plain Road of any interest to the escrowed funds of Plain Road in connection with the transaction with Moncure. Coldwell Banker then brought an action against Moncure for declaratory judgment alleging that it was the rightful owner of the escrowed funds and that the liquidated damages clause within the Purchase and Sale Agreement with Moncure was unenforceable. Moncure moved for summary judgment in connection with a counterclaim against Coldwell Banker for breach of fiduciary duty and violation of G.L.c. 93A.
The issue in dispute was whether the liquidated damages clause of the Purchase and Sale Agreement was enforceable. Ultimately, the Court determined that the liquidated damages clause was enforceable and that Moncure was entitled to receive Plain Road’s deposit as liquidated damages. Citing NPS, Inc. v. Minihane, 451 Mass. 417 (2008), the Court indicated that such clauses should be enforced provided that the provisions of the liquidated damages clause are not so disproportionate to anticipated damages so as to amount to a penalty. Referencing the same case, the Court further stated that the burden was on the plaintiff challenging the provision to show that the liquidated damages clause is unenforceable. Here, Coldwell Banker was not able to prove that the clause should be unenforceable.
The Court also drew its opinion from Kelly v. Marx, 428 Mass. 877 (1999), in which a liquidated damages clause was upheld where the Seller was able to convey the property to a subsequent Buyer for a higher amount than originally contemplated. What is interesting is that within the circumstances surrounding the Kelly matter, the Seller suffered no actual loss. However, the Court held that the question was not whether the Seller suffered actual damages, but rather whether the parties understood at the time the contract was signed that the potential damages for Buyer’s breach were difficult to determine and, as a result, the parties agreed to certain amounts to be payable as liquidated damages. The Buyer’s deposit of five percent was a reasonable forecast of Seller’s losses that may result in the event of Buyer’s breach as the list of unforeseeable circumstances include the time associated with finding a subsequent Buyer and the status of the real estate market. Where the potential damages were difficult to determine at the time the agreement was executed by the original parties, in the Court’s opinion, the deposit amount as agreed upon as liquidated damages was a reasonable amount in the event of Buyer’s future breach. The circumstances within the Moncure case are substantially similar.
Coldwell Banker argued that the liquidated damages clause was unenforceable as Moncure knew what his actual damages would be. Upon learning that the closing with Plain Road might fail, Moncure took steps to obtain financing for the purchase of other real property that was originally to be purchased with the proceeds from the sale to Plain Road. Thus, Coldwell Banker alleged that Moncure knew his actual damages and was able to prevent his inability to purchase the subsequent property by obtaining financing. The Court did not agree. While Moncure was able to determine potential losses just before the failed closing, such loses were not similar to the anticipated losses at the time the Purchase and Sale Agreement was signed. The Court stated that at the time of the Purchase and Sale Agreement, the Seller could not know what delays might become prevalent in finding a subsequent Buyer, how the failed sale might affect Seller’s future plans, or what might occur in the real estate market after a failed sale. Even where Moncure was fortunate enough to secure financing just before the failed sale, the Court stated that it does not mean that Moncure’s actual damages were ascertainable at the time the contract was entered into.
Coldwell Banker was also unsuccessful in its defense against Moncure’s G.L.c. 93A claim. The Court stated that Coldwell Banker’s attempt, in filing an adversarial action, to obtain the very funds it was entrusted to hold as escrow agent were unethical and unscrupulous. By filing the action, Coldwell Banker sought to satisfy a debt owed, by Plain Road to Coldwell Banker, by seeking to obtain the funds it held as escrow agent. By doing so, Coldwell Banker placed its own interests ahead of its fiduciary duty to Moncure, thus acting unethically and unscrupulously, thereby violating G.L.c. 93. The case indicated a subsequent hearing would be held to determine Moncure’s damages as a result of Coldwell Banker’s violation.Add a comment
- Written by Lou Genovese
In early December, the Massachusetts Appeals Court affirmed a 2008 decision of the Superior Court in the case of NRT New England, Inc. d/b/a Coldwell Banker Residential Brokerage v. Ashby C. Moncure, 24 Mass. L. Rep. 181 (2008). In question was the enforceability of the liquidated damages clause within the terms of a Purchase and Sale Agreement. In March 2004, the defendant and Seller, Ashby C. Moncure (“Moncure”), contracted with Coldwell Banker to list certain real estate. Subsequently, a Purchase and Sale Agreement was executed by Moncure and the Buyer, Plain Road. At that time, Plain Road placed a deposit of $92,500.00 with Coldwell Banker to be held in escrow. The terms of the Agreement contained a standard liquidated damages clause as follows:Add a comment
- ► 2017 (21)
- ► October (1)
- ► September (1)
- ► August (3)
- ► June (2)
- ► April (3)
- ► March (2)
- ► February (2)
- ► January (7)
- • HAM Radio Bill Re-Introduced and Passes U.S. House
- • Homeowner Association Predictions for 2017
- • Community Associations Institute Highlights Legal Issues for 2017
- • Ignorance is Not Always Blissful
- • Smoke Detectors are Now Subject to New Regulations
- • Regulations for Notaries Public Undergo Legal Refinement
- • P&A Welcomes Daniel Lopez as our New Associate Attorney
- ► 2016 (54)
- ► December (5)
- • Amazon PrimeAir Performs Initial Drone Delivery
- • HAM Radio Legislation Regarding Community Associations Does Not Pass the Senate
- • Fannie Mae and Freddie Mac Will Repeat Their Stoppage of Foreclosure Related Evictions During the Holidays
- • College Grads Working in Public Service Jobs May Not Receive Intended Loan Repayment Benefits
- • Senior Partner Charlie Perkins Would Like to Update Readers on CAI Efforts to Expand FHA Loan Certification for Condominiums
- ► November (5)
- ► October (8)
- • Site Work Has Begun on the Groton Inn
- • Former P&A Intern Megan Johnson Headed to the US Attorney’s Office
- • Government Response to Hurricane Matthew Damage Comes Under Scrutiny by CAI
- • Please Join us at the Community Associations Institute Annual Condo Expo
- • Student Loan Debt Continues to Rise
- • Lenders Have a Third Party Interest in Condominium Loans
- • Fun Amenities Appear in Some Condominiums
- • TV’s “Modern Family” Sitcom Spawns Realtor Advertising Campaign
- ► September (4)
- ► June (3)
- ► May (9)
- • Attorney Kim Alley Completes the Run to Remember Half Marathon
- • P&A Wishes Everyone a Happy and Safe Memorial Day
- • New Home Sales are Occurring at a Historic Pace
- • California Hyperloop Transport Construction Race Begins
- • Wave of Bankruptcies in the Energy Sector Continues
- • Condominium Terminology Explained
- • Builders Face Increased Fees, Struggle to Meet Lower Priced Housing Demands
- • Please Join us as the New England Condominium Expo!
- • Commonwealth Prepares for Full Legalization of Marijuana in Upcoming Ballot Measure
- ► April (8)
- • Leominster Condominium Association Suffers Embezzlement by Board Member
- • The HOME Act is Now a Bi-Partisan Resolution in the House of Representatives
- • The Nation’s Largest Coal Mining Outfit Declares Bankruptcy
- • Homeowners’ Associations Should Prepare for the Zika Virus
- • Parental Rights on Trial Before the SJC
- • Best Time to List a House for Sale in Boston
- • Property Tax Should be a Consideration When Home Shopping
- • Team P&A Bowling Night at King’s was a Huge Success
- ► March (10)
- • Important Update – SJC Issues Decision in Drummer Boy Case
- • Bankruptcy Courts are Beginning to Consider Forgiving Student Loan Debt
- • Perkins & Anctil Supports the People of Belgium
- • Homeowner Association Fees May Become Tax Deductible
- • The Boston Area is Home to Multiple Condominiums that are Converted Churches
- • City of Boston Considers Rent Control-Again
- • Law School Graduate Sues Alma Mater
- • Sports Authority Files for Chapter 11 Bankruptcy
- • Water is Coming
- • P&A Welcomes Rhonda Duddy to our Real Estate Department
- ► February (2)
- ► December (5)
- ► 2015 (33)
- ► April (2)
- ► March (1)
- ► February (15)
- • Law School Offers Training That Provides Courtroom Experience
- • Home Inspection Items for the DIY Buyer
- • Unauthorized Practice of Law or Legitimate Consumer Service?
- • Decreasing Housing Stock And Increasing Home Prices May Equal Big Seller Benefits
- • “WELCOME BACK MY FRIENDS TO THE SHOW (OR RATHER SNOW) THAT NEVER ENDS…”
- • SEND IN THE DRONES
- • Interest on Treasury Securities, Oil Market Upheaval and Other Factors Effecting Downward Trend for Mortgage Rates
- • Seasonal Real Estate Market Fluctuations May be Overstated
- • Certificates of Insurance
- • Real Estate Closing Costs Explained
- • Low Mortgage Rates are Competing with Low Housing Inventory in 2015
- • Condominium Terminology (CMigrator copy 1)
- • Notes from CAI’s 36th Annual Community Association Law Seminar
- • Fed Planning to Increase its Target Federal Funds Rate
- • HAM Radio Antenna Debate Expected in Congress
- ► January (15)
- • Attorneys Perkins, Chenelle and Eriksen to Attend the 36th Annual Community Association Law Seminar
- • Disaster Preparedness an Important Feature of Association Well Being
- • Condominium Terminology
- • P&A Attorneys Aid Two Condominium Associations in Going Smoke-Free
- • Government Studies Reveal That Consumers Shy Away From Mortgage Research
- • Mortgage Rates Return to Historic Low Levels
- • Subscribe to Blog
- • LEGISLATIVE VOTE UPDATE
- • Interest-Only Loans Re-Emerging as a Borrowing Alternative
- • Declining Oil Prices to Benefit Mortgage Rates
- • Hot Trends in Real Estate Seminar a Huge Success
- • Warm Weather Condominiums Available
- • Jumbo Loan Applications are Becoming Time Sensitive
- • Boston Condominium Has Interesting History
- • Hot Trends in Real Estate Seminar Scheduled for January 7, 2015
- ► 2014 (42)
- ► December (17)
- • Executive Action Expected on Mortgage Debt Forgiveness Relief Act Extension
- • Community Associations Institute Concerned By Federal Housing Finance Agency Actions
- • Drones: Popularity and Technology Advance, Prompting Community Associations to Think Ahead
- • 2015: Home Prices, Interest Rates Expected to Increase; Millennials to Enter the Housing Market
- • CAI Urges Congress to Extend Terrorism Risk Insurance Program
- • Military Members Subject to an Extension of Foreclosure Protection by Congress
- • Community Association Profile: Summer Village in Westford, MA
- • Tax Breaks in Store for Short Sellers
- • When a Condo Can’t Say No to Fido: Service and Emotional Support Animals
- • Condo Media Magazine Cover Story Features Thoughts by Senior Partner Charlie Perkins
- • More Home Buyer Advice
- • Community Association Profile: The Village At Salisbury Square
- • Lenders Prepare to Ease Borrowing Requirements as the Financial Crisis Wanes
- • Who is this Robert Guy Anyway?
- • Condos Proliferating, Values Climbing in Boston’s Outer Suburbs
- • Attorney David Chenelle Recognized for Public Service by United States Bankruptcy Court
- • Percentage of Buyers Shopping for Their First Home Falls Well Below Average
- ► November (18)
- • BOA Attorneys Approach Supreme Court for Clarification of Chapter 7 Bankruptcy Cases as They Relate to Second Mortgages
- • Borrowing Better Done Sooner Rather Than Later
- • Thoughts on Refinancing and Equity Withdrawal
- • City of Detroit Reaches Historic Bankruptcy Agreement
- • Choosing a Mortgage Lender
- • Bad Apples: How to Avoid Spoiling the Barrel
- • Tricky Condominium Questions - Answered by Attorney Rob Anctil and Mortgage Network Employee Candace Rosetti
- • Developer of Mixed Use Forestdale Village in Sandwich Files for Chapter 11 Bankruptcy Protection
- • Potential Decrease in Down Payment Requirement from 20% of a Home’s Value to 3% May Increase the Pool of First-Time Home Buyers
- • For Those Not Convinced the Cold War is Over
- • Community Association Quality of Life Ranked High in CAI Survey
- • THE 'DRUMMER BOY' DECISION AND HOW IT AFFECTS US
- • RE-VERIFYING OCCUPANCY IN A 55 AND OVER ASSOCIATION
- • First-Time Homebuyer Guidance
- • Attorney Rob Anctil to Speak at N.E.A.R. Lunch & Learn Event: "Tricky Condo Questions Answered"
- • Should College Loans be Forgiven for First Time Home Buyers?
- • Can your “cease and desist” letter be used against you?
- • Rising Mortgage Rates Are Still Low Enough to Interest Some Refinancers
- ► October (7)
- • The Annual Community Association Institute Roundtable Event Took Place (with a surprise) on October 25th
- • Michelle Phelps brings 25 years of paralegal experience to the P&A Team
- • Today marks our 5th Anniversary at 6 Lyberty Way!
- • Nichole Cincotta joins Perkins & Anctil as our new receptionist and legal assistant
- • The Groton Inn Property Has Been Sold to P&A Developer-Clients Chris Ferris and Rich Cooper
- • P&A Condominium Attorney Scott Eriksen Weighs in on Malicious Unit Owner Behavior
- • P&A Congratulates Kim Alley on finishing the Bay State Half Marathon
- ► December (17)