Published in Construction Defect Journal
In an article published on April 14 in Construction Defect Journal, Ball Janik LLP Partner Nicholas B. Vargo explains why community associations should investigate their property and potential construction defect exposure before signing any turnover settlement or release agreement. He highlights how developers may offer minor repairs or a claimed budget shortfall forgiveness in exchange for broad releases that can waive unknown or future defect claims.
The article outlines how developers often have years of project knowledge while newly elected boards are still gathering records and learning the community’s condition. Vargo emphasizes that many defects are latent and that signing at turnover can bind current and future owners to waive valuable rights without full information.
Signing a release at turnover is not an administrative formality; it is a major legal decision. Preserving the right to investigate until an independent evaluation is completed is responsible governance.
To read the article in full, click here.