Q: What is a Condo Board function in transfer money from building insurance to incur damage 3 condo owners ?
Condo board received payment for flood damage for 3 units. Boards payed out us only 50% and requested form us to sign 1) complicated 16 page agreement ,2)certificate of limited warranty, 3)final waver of lien.Why Board required from us to sign those papers? Insurance already made payment by sending the check to Board and gave us damage estimates. We think: when Insurance made payment and sent us estimates therefore insurance finalized the whole process. Board is only obligated to transfer money to us not to obstruct process.
A:
The Board of your Condominium has duty to all residents/members to ensure that insurance proceeds are applied properly for repairs. Once those repairs have been completed, the Board is responsible to ensure that any applicable warranty is honored. Finally, the Board is also required to prevent the placement of any claims by workers against the Condo Association - i.e. to prevent the placement of a Mechanics Lien. It appears that in this case your Board wants you to agree to certain safeguards before passing on proceeds to you for the repair of common elements or even your own units.
You cannot get a fully satisfying answer unless you bring the documents in question to a local Attorney and find out more. Details make a big difference is such situations. I hope that this information has been helpful. Best of luck.
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