Is HOA or Condo Association Required to Disclose Litigation?

Here is a question a reader asked:
“Recently a homeowner sued our association for illegally towing her car in front of her home….    Is the association obligated by law to inform the membership the association is being sued?”
There is no law requiring disclosure of this kind of a lawsuit. In fact, the only kind of lawsuit for which there are disclosure laws in the Davis Stirling Act are lawsuits relating to suing the developer for construction defects. These disclosures appear in Civil Code Section 1375 which contains a complicated process for “mediating” construction defect claims.
However, it might be good here to note that if an owner is selling a unit and in the course of the transaction the board receives a lender questionnaire that asks if there is any litigation pending, if the HOA completes this form it should answer honestly.
And it is important to note that if there is a big lawsuit pending keeping it a secret can come back to bite in many ways.
  • Share/Bookmark

Sorry, comments are closed for this post.