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

Summary

Allows unit owners to end certain long-term contracts signed after October 8, 1980. It applies to contracts for running, maintaining, or managing a condo or co-op (or property serving those owners) that were made between the developer (or an affiliate) and the owners or association while the developer controlled the association, and that last more than three years (including any auto-renewal the developer alone can trigger). Owners can only cancel during the two-year period that begins when the developer’s special control ends or when the developer owns 25 percent or less of the units. Cancellation needs a yes vote from owners holding at least two-thirds of the units not owned by the developer. The contract ends ninety days after notice is hand-delivered or sent by prepaid U.S. mail to the 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