Condogrl there is even more concern about the HOA then you brought up. The client of mine who is interested in the downtown area is an attorney. He has found that some of the current projects that are less then 10 years old are indeed having litigation regarding construction defects. The larger problem here is that the developers that are defendants may not have any money left so even if the HOA wins the lawsuit, if the developer is broke or is structured in such a way as to be able to shield the assets, then the HOA is on the hook for whatever needs to be remedied in the building. This (in some cases) can be big dollars. Now as a homeowner you may be on the hook for an assessment, perhaps a non trivial assessment.
Is this happening alot? No. Is this particular client perhaps a little over paranoid? Yeah a little but he is an attorney and he is simply covering all possibilities. Not a bad idea.
