If you're working with investors considering buying unbuilt condominium space in California, be sure they read the condo governing documents before the purchase. If the covenants, conditions and restrictions (CC&Rs) tie the payment of assessments to the completion of the first condo in the development, buyers must pay assessments on their "air lot" or face foreclosure, a California appellate court has ruled in Bear Creek Master Association v. Edwards. The holding is the first in California applying California's Davis-Stirling Act, which governs how homeowners' associations operate, to a case in which the association's governing documents pre-dated the act yet called for owners to pay assessments from the date the first condo in a sub-development was completed, according to Adrian Ada...
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