§3607 — Title 15 Commerce and Trade | U.S. Code

Summary

Unit owners or their association can cancel certain long-term management or maintenance contracts with the developer or a developer’s affiliate. This applies to contracts made after October 8, 1980 that let the developer run or maintain the condo/co-op or its property, were signed while the developer controlled the association, and last more than three years (including automatic renewals the developer alone can start). A contract can only be ended during the two-year period that begins when either the developer’s special control ends or the developer owns 25 percent or less of the units. Ending it must be approved by owners of at least two-thirds of the units, not counting units owned by the developer or its affiliate. After that vote, the termination takes effect ninety days after notice is given by hand delivery or by prepaid United States mail to the contract parties.

Title 15, §3607

Commerce and Trade — Source: USLM XML via OLRC

(a)Any contract or portion thereof which is entered into after October 8, 1980, and which—

(1)provides for operation, maintenance, or management of a condominium or cooperative association in a conversion project, or of property serving the condominium or cooperative unit owners in such project;

(2)is between such unit owners or such association and the developer or an affiliate of the developer;

(3)was entered into while such association was controlled by the developer through special developer control or because the developer held a majority of the votes in such association; and

(4)is for a period of more than three years, including any automatic renewal provisions which are exercisable at the sole option of the developer or an affiliate of the developer,

(b)Any termination under this section may occur only during the two-year period beginning on the date on which—

(1)special developer control over the association is terminated; or

(2)the developer owns 25 per centum or less of the units in the conversion project,

(c)A termination under this section shall be by a vote of owners of not less than two-thirds of the units other than the units owned by the developer or an affiliate of the developer.

(d)Following the unit owners’ vote, the termination shall be effective ninety days after hand delivering notice or mailing notice by prepaid United States mail to the parties to the contract.

Editorial Notes

Codification In subsec. (a), “October 8, 1980” was substituted for “the

Effective Date

of this title”. See

Effective Date

note set out under section 3601 of this title.

§3607 Termination of self-dealing contracts

Summary

Title 15, §3607

Notes & Related Subsidiaries

Editorial Notes

Effective Date

Effective Date

Citations & Metadata