Pulte Home Corp. v. Countryside Cmty. Ass’n, Inc.

The Countryside Townhome Subdivision was a residential common interest community. The homeowners association for the Subdivision filed a complaint against the developer, seeking over $400,000 in past-due assessments for maintenance of the developer's unsold properties and related common elements. The developer's liability was implicated when its properties became part of the Subdivision under the community's governing instruments and the Colorado Common Interest Ownership Act. In a split decision, the court of appeals determined that the community was formed when the document containing the community's covenants and the plat were recorded, and that the developer's properties were brought into the community at that time. The Supreme Court, however, disagreed, finding that the mere recordation of the covenants and plat did not create the common interest community. "Rather, the community was created when the developer first subjected the property to the covenants." Because the developer's property could not become part of the community until it was added, and the developer was not otherwise liable for the assessments. View "Pulte Home Corp. v. Countryside Cmty. Ass'n, Inc." on Justia Law