Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
Kamran Salour Named to Los Angeles Times' 2026 Legal Visionaries List
June 02, 2026 —
Lewis BrisboisOrange County Partner and Data Privacy & Cybersecurity Practice Co-Chair Kamran Salour was named to the Los Angeles Times' 2026 Legal Visionaries list, which honors the most innovative attorneys in Southern California.
In announcing this year's Legal Visionaries, the Times said that Mr. Salour and his co-honorees "distinguish themselves not only through skilleand results but through an unwavering commitment to their clients, their craft and the communities they serve."
"Their paths – shaped by rigorous education, defining cases and purposeful leadership – offer a deeper perspective on what sets true standouts apart," the Times' announcement stated. "Together, these visionaries exemplify a forward-thinking approach to the law, elevating both their profession and the people who depend on it."
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Lewis Brisbois
Can Anything Supersede Excel in AEC?
April 27, 2026 —
Aarni Heiskanen - AEC BusinessIf there’s one piece of software that dominates the business world across industries, it’s Microsoft Excel. Can AI finally dethrone the mighty spreadsheet?
Memorable Spreadsheet Moments
Everyone has memorable spreadsheet moments. I have a few. For example, my then-architecture firm was involved in more than a dozen housing developments abroad. I developed an Excel workbook that took the required number of households as input and automatically generated a breakdown of buildings and their apartment types for AutoCAD. This was urban planning and architectural design done with a spreadsheet.
I also developed business software using Excel for project portfolio management. The prototype was later scaled into a commercial SaaS that is now used globally.
Another memorable moment was when a property owner told me their Excel file grew so large that it ran out of rows and columns. That must have been before 2007, when the maximum number of columns on a sheet was still just 256 and the maximum number of rows was 65,536. The current limits are 1,048,576 rows and 16,384 columns, which I hope no one will exceed.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Settlement Agreements and Contracts Require a Meeting of the Minds
July 20, 2026 —
David Adelstein - Florida Construction Legal UpdatesA settlement agreement does not need to be executed for it to be enforceable as long as there was a MEETING OF THE MINDS. The same rings true for any contract regardless of whether the contract is signed – THERE NEEDS TO BE A MEETING OF THE MINDS.
In a recent case dealing with the settlement agreement on a construction lien, the essential settlement terms (money and mutual release) were memorialized in an e-mail exchange between the parties (owner and subcontractor). The settlement required the owner to pay the principal amount plus some attorney’s fees and then a mutual general release would be prepared. In response to the confirmatory email, the owner sent a check, which the subcontractor deposited, but the owner refused to sign the release signed and sent by the subcontractor. The owner further claimed it doesn’t need to pay the attorney’s fees because the lien amount was paid in full. The subcontractor sued arguing the owner breached the terms of the settlement. The appellate court agreed.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
'Drywall Isn't Light': Peter Lupo on Safety Management at Standard Drywall
May 26, 2026 —
Elaine Silver - Engineering News-RecordPeter Lupo has been safety director since 2019 at San Diego-based Standard Drywall Inc., a major wall and ceiling contractor. He draws on over two decades of safety experience across a wide range of commercial construction work, having previously served as safety director for general contractor T.B. Penick & Sons. He has also previously operated Peter Lupo Consulting, where he reviewed legal cases and provided expert testimony, and blogged on safety for ENR.com. Lupo recently spoke to ENR Correspondent Elaine Silver about the weight of drywall, heat hazard control, bilingual crews and how he supports safety creativity and learning on the Standard Drywall staff. The conversation has been edited.
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Elaine Silver, Engineering News-RecordENR may be contacted at
enr@enr.com
Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements
July 06, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!
- With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
- The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
- Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)
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Pillsbury's Construction & Real Estate Law Team
Navigating the New Frontier of Federal-State Energy Regulation: What Energy Companies Need to Know
June 08, 2026 —
Ryan J. Regula - Snell & WilmerIntroduction
The jurisdictional boundary between the Federal Energy Regulatory Commission (FERC) and the states is being actively contested, from challenges to landmark transmission planning rules to disputes over emergency cost-allocation orders, in ways that carry significant legal, financial, and operational implications for energy companies. For utilities, independent power producers, and transmission developers, understanding these dynamics is now a strategic imperative.
The Jurisdictional Divide: A Bright Line That Isn’t
The Federal Power Act divides authority between FERC and the states: FERC exercises jurisdiction over interstate transmission and wholesale electricity sales, while states retain authority over generation facilities, retail rates, and decisions about resource mix. The D.C. Circuit has regularly been called upon to “referee the Federal Power Act’s jurisdictional line separating [FERC’s] jurisdiction over the federal wholesale market and States’ jurisdiction over facilities used in local distribution.”1
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Ryan J. Regula, Snell & WilmerMr. Regula may be contacted at
rregula@swlaw.com
Congratulations to BWB&O’s 2027 Southern California Super Lawyers and Rising Stars Honorees!
September 08, 2026 —
Bremer Whyte Brown & O'Meara, LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Nicole Whyte,
Keith Bremer,
John Toohey, and
Tyler Offenhauser have been named to the 2027 Southern California Super Lawyers list. Notably, Nicole Whyte was also selected to the Top 50 Orange County Super Lawyers list, an honor reflecting her outstanding work, leadership, and impact in the legal community.
Associates
Kevin Moore,
Sukayna Jaidi, and
Andrew Mathews are also being recognized as 2027 Southern California Super Lawyers Rising Stars.
Our team is being honored for their distinguished service and dedication in Family Law, Civil, Business, Construction, and Personal Injury Litigation.
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Bremer Whyte Brown & O'Meara, LLP
