May 24, 2019

Colorado Supreme Court: CCIOA Requires Execution and Recording of Amending Documents to Subdivide Parking Garage

The Colorado Supreme Court issued its opinion in Perfect Place, LLC v. Semler on Monday, September 17, 2018.

Common Interest Communities—Quieting Title—Deeds.

In this quiet title action, the supreme court reviewed whether the owner of a garage condominium unit validly subdivided the unit under C.R.S. § 38-33.3-213 of the Colorado Common Interest Ownership Act by merely painting or marking lines on the garage wall, and thereafter separately conveying the spaces thus marked as individual condominium parking units. Because C.R.S. § 38-33.3-213(3) provides that “no subdivision of units shall be effected” without executing and recording the necessary amendments to the condominium declaration, and because no documents were recorded in connection with his purported subdivision, the court held that the owner did not accomplish a valid subdivision of the garage unit in this case. The court further held that a quitclaim deed obtained from the owner was not void for fraud in the factum. Although evidence in the record suggests the owner may have been deceived as to the purpose of the deed, fraud in the factum requires proof that the grantor was ignorant as to the nature of the instrument itself. Here, the owner understood that he was signing a quitclaim deed, even if he failed to appreciate the ramifications of his act. Accordingly, the court reversed the court of appeals’ judgment and remanded the case for further proceedings to determine the resulting chain of title for the disputed parking units.

Summary provided courtesy of Colorado Lawyer.

Colorado Supreme Court: Foundational Documents Insufficient to Create Homeowners Association for Common Land

The Colorado Supreme Court issued its opinion in McMullin v. Hauer on Monday, June 18, 2018.

Colorado Common Interest Ownership Act—Common Interest Communities—Homeowners’ Associations.

The supreme court reviewed the court of appeals’ opinion affirming the trial court’s order finding that the recorded instruments in this case were sufficient to create both a common interest community by implication and an unincorporated homeowners’ association. The court held that the recorded instruments were insufficient under the Colorado Community Interest Ownership Act to create a common interest community by implication. Accordingly, the court reversed the court of appeals’ judgment and remanded the case for further proceedings consistent with this opinion.

Summary provided courtesy of Colorado Lawyer.