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.
Brenda Radmacher Authors Chapter in ABA Publication on Construction Delays
May 26, 2026 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, a partner in Seyfarth’s Construction Law practice and a mediator and arbitrator serving on the American Arbitration Association’s panels, is among the contributing authors to the American Bar Association’s forthcoming guide on construction disputes: Time – The Legal Implications of Project Delay in Construction.
Drawing on three decades of experience, Radmacher authors Chapter 8, Contractor Delay Damages, offering practical insight into one of the most contested issues in construction litigation and arbitration.
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Brenda Radmacher, Seyfarth Shaw LLP
The Most Expensive Signature to Not Get: Why Change Orders Matter
August 16, 2026 —
Kathryne E. Baldwin - Wilke FleuryGeorge Bernard Shaw has a quote we use a lot in my family: “The single biggest problem in communication is the illusion that it has taken place.” This is pertinent to contractors and homeowners alike because the cost of failing to get proper signatures on documents like construction contracts, and particularly, change orders, is heavy. Both contractors and homeowners are in the same boat as far as wanting to complete a job as swiftly as possible: contractors go on to their next job and homeowners can return to peace in their home. This is prime territory for either party to suggest the work be completed today and the contract or change order executed tomorrow, or even later. However, without a contract, there is no memorialization of the communication between the parties, which can lead to confusion and missed expectations on both sides.
Construction plans are rarely as neat and tidy as they originally seem to be. A contractor may uncover unforeseen conditions, an owner may request additional work or changes that require additional work, or weather interferes with project schedules or the work itself. Unfortunately, the signature that never gets collected can become one of the most expensive omissions on a project – for both sides.
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Kathryne E. Baldwin, Wilke FleuryMs. Baldwin may be contacted at
kbaldwin@wilkefleury.com
2026 Top Business Risks for Construction and Engineering Companies
May 26, 2026 —
Darren Tasker - Construction ExecutiveThe 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this
annual business risk ranking by corporate insurer
Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year.
Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026:
Natural Catastrophes
Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion.
Reprinted courtesy of
Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Understanding the EPA’s Latest Proposed Drinking Water Contaminant Monitoring Rule, Published in Law360
September 01, 2026 —
Gordon Rees Scully MansukhaniThe U.S. Environmental Protection Agency’s (EPA) proposed Sixth Unregulated Contaminant Monitoring Rule (UCMR 6) represents another step in the federal government’s ongoing effort to identify and evaluate emerging contaminants in drinking water. The proposal would require certain public water systems to monitor and report on 30 unregulated drinking water contaminants from 2028 through 2030, while generating occurrence data that could inform future regulation and affect environmental, commercial, litigation and risk assessments.
In an article published by Law360, Gordon Rees Scully Mansukhani Senior Counsel, Ayodeji Ayolola, analyzes the scope and practical implications of UCMR 6, including the contaminants selected, the proposed monitoring requirements for public water systems, and the EPA’s continued focus on PFAS and related organofluorine compounds. The article also touches upon the potential significance of publicly available monitoring data for businesses and property stakeholders.
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Gordon Rees Scully Mansukhani
A Customized Approach to Data Center Construction
June 29, 2026 —
James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogData center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions.
Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.
Reprinted courtesy of
James P. Bobotek, Pillsbury,
Arielle L. Murphy, Pillsbury and
Robert A. James, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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SDV Celebrates 30th Anniversary Press Release
April 08, 2026 —
Saxe Doernberger & Vita, P.C.Trumbull, Connecticut – Saxe Doernberger & Vita, P.C. (SDV) is proud to announce the celebration of its 30th anniversary.
Founded in 1996 by three attorneys in a small New Haven, Connecticut office, SDV was built on a clear and focused mission: representing policyholders in insurance coverage matters. Three decades later, that commitment remains at the core of the firm’s identity and has been instrumental in its continued success and reputation nationwide.
Today, SDV is a nationally recognized boutique firm with 50 attorneys serving policyholders across the United States. Building on its longstanding reputation for excellence and client advocacy, the firm is pleased to announce the opening of its newest office in Massachusetts—an exciting milestone that reflects SDV’s continued growth. The new office is led by Managing Partner Anna Perry.
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Saxe Doernberger & Vita, P.C.
In the Eye of the Beholder: Court of Appeal Finds Duty of Care Owed by Owner and Contractors for Death of Minors Caused by Independent Truck Driver
May 05, 2026 —
Garret D. Murai - California Construction Law BlogI was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had
the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady.
Cases can sometimes be like that: You see what you want to see. The next case is also like that.
In
Lorenzo v. Calex Engineering, Inc., 110 Cal.App.5th 49 (2025), the 2nd District Court of Appeals reversed a motion for summary judgment granted in favor of an owner and its contractors in a case involving the death of two minors struck by a dump truck enroute to a non-permitted off-site staging area.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
