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.
Congratulations to Gianna Liddy on Her Promotion to Partner
September 21, 2026 —
Dolores Montoya - Bremer Whyte Brown & O’Meara, LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Gianna Liddy has been promoted to partner. Gianna’s dedication, leadership, and exceptional contributions to the firm have earned her this well-deserved recognition. Please join us in congratulating her on this exciting achievement!
Meet Gianna Liddy!
Gianna has been with BWB&O since 2019 and has been practicing law since 2017. Her practice focuses on complex civil defense litigation, including high-exposure personal injury, premises liability, transportation, construction defect, habitability, and general liability matters. As a Supervising Attorney in the firm’s Encinitas office, she oversees a team of attorneys, collaborates closely with clients and insurance professionals, and develops litigation strategy in complex matters.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O’Meara, LLP
Building the Research and Healthcare Facilities of Tomorrow Without Impacting the Progress of Today
August 16, 2026 —
Jason Tobias - Construction ExecutiveResearch labs run experiments that can’t be paused. Hospitals treat patients around the clock. Yet these same facilities constantly need upgrades—new infrastructure, modernized systems, renovated spaces—to meet the demands of twenty-first century science and medicine. The challenge for construction teams isn’t just building. It’s building without ever turning the lights off.
This unique dynamic creates an environment where construction activities are happening adjacent to sensitive testing and treatment, a complex setting where disruptions can have serious consequences.
Skanska continues to successfully navigate these challenges across multiple sectors, including from occupied lab space at the
North Carolina Department of Environmental Quality’s (NCDEQ) Reedy Creek Laboratory in Raleigh to hospital corridors alongside staff and patients in various hospital locations across the country.
Reprinted courtesy of
Jason Tobias, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
At the Frontier of Change: How—or Where—to Rebuild as Alaska's Permafrost Disappears
September 28, 2026 —
Pam McFarland - Engineering News-RecordIn some areas of the tiny subsistence coastal village of Kwigillingok along the Bering Sea in western Alaska, pockets of ground feel squishy, almost gelatinous, rather than solid. It’s an odd sensation, as if there is only a thin layer of muddy soil preventing people from falling into the water beneath their feet.
Read the full story...Reprinted courtesy of
Pam McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
Over 50 Lewis Brisbois Attorneys Recognized in 7th Edition of Best Lawyers: Ones to Watch in America
September 01, 2026 —
Lewis Brisbois56 Lewis Brisbois attorneys across 26 offices have been named to the 7th edition of “Best Lawyers: Ones to Watch in America.” Congratulations to the following attorneys on this recognition!
You can see the full list of Lewis Brisbois attorneys named to Best Lawyers' 33rd edition of The Best Lawyers in America
here.
Akron, OH
- Partner Meleah M. Skillern - Commercial Litigation
Atlanta, GA
- Partner Catherine Crawley - Personal Injury Litigation – Defendants; and Transportation Law
- Associate Davis Lackey - Insurance Law; and Personal Injury Litigation – Defendants
Read the full story...Reprinted courtesy of
Lewis Brisbois
Underlying Complaint Alleges Possibility of Coverage, Triggering Duty to Defend
September 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute among insurers for various defendants in the underlying case regarding the providing of a defense, the Second Circuit vacated, in part, the district court’s judgment and remanded the case. New Your Marine and Gen. Ins. Co. v. Fed. Ins. Co., 2026 U.S. App. LEXIS 18087 (2nd Cir. June 23, 2026).
Mary Guzman, who worked for a cleaning company, PBM, LLC, alleged that she was injured when a glass panel in a revolving door fell onto her as she cleaned the door. She filed suit in state court against the owners of the building as well as the lessee of the fifteenth floor where the accident occurred, Bank of New York Mellon (Bank). She alleged the owners and the Bank were negligent in creating the dangerous condition that caused her injury.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage
April 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025).
The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners
July 20, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!
- Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
- Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
- Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
