Court Opinions

(a) A person shall not provide or offer to provide anything of value, directly or indirectly, to a property manager of an association or to a member or officer of an association to induce the property manager, member, or officer to encourage or discourage the association to file a claim for damages arising from a construction defect.

(b) A property manager retained by a homeowneŕs association shall not accept anything of value, directly or indirectly, in exchange for encouraging or discouraging the association that he or she manages to file a claim for damages arising from a construction defect.

(c) A member or officer of an association shall not accept anything of value, directly or indirectly, in exchange for encouraging or discouraging the association of which he or she is a member or officer to file a claim for damages arising from a construction defect.

(d) A person who knowingly violates subsection (a), (b), or (c) of this Code section shall be guilty of a misdemeanor.

(e) An association may bring an action against a contractor to recover damages resulting from construction defects in any of the common elements or limited common elements of the common interest community only. Such action may be maintained only after:

(1) The association first obtains the written approval of each unit́s owner whose interest in the common elements or limited common elements will be the subject of the action;

(2) A vote of the unitś owners to which at least a majority of the votes of the members of the association are allocated;

(3) The full board of directors of the association and the contractor have met in person and conferred in a good faith attempt to resolve the associatiońs claim or the contractor has definitively declined or ignored the requests to meet with the board of directors of the association; and

(4) The association has otherwise satisfied all of the preaction requirements for a claimant to commence an action as set forth in this part.

(f) At least three business days in advance of any vote to commence an action by an association to recover damages resulting from construction defects in any of the common elements or limited common elements of the common interest community, the attorney representing the association shall provide to each unit́s owner a written statement that includes, in reasonable detail:

(1) The defects and damages or injuries to the common elements or limited common elements;

(2) The cause of the defects, if the cause is known;

(3) The nature and the extent that is known of the damage or injury resulting from the defects;

(4) The location of each defect within the common elements or limited common elements, if known;

(5) A reasonable estimate of the cost of the action or mediation, including reasonable attorneyś fees and costs, expert fees, and the costs of testing; and

(6) All disclosures that the unit owner is required to make upon the sale of the unit.

(g) An association or an attorney for an association shall not employ a person to perform destructive tests to determine any damage or injury to a unit, common element, or limited common element caused by a construction defect unless:

(1) The person is licensed as a contractor pursuant to law;

(2) The association has obtained the prior written approval of each unit́s owner whose unit or interest in the common element or limited common element will be affected by such testing;

(3) The person performing the tests has provided a written schedule for repairs;

(4) The person performing the tests is required to repair all damage resulting from such tests in accordance with state laws and local ordinances relating thereto;

(5) The association or the person so employed obtains all permits required to conduct such tests and to repair any damage resulting from such tests; and

(6) Reasonable prior notice and opportunity to observe the tests is given to the contractor against whom an action may be brought as a result of the tests.

(h) An association may commence an action only upon a vote or written agreement of the owners of the units to which at least a majority of the votes of the members of the association are allocated. In such a case, the association shall provide written notice to the owner of each unit of the meeting at which the commencement of an action is to be considered or action is to be taken at least 21 calendar days before the meeting.

(i) The board of directors of an association may, without giving notice to the unitś owners, employ a contractor and such other persons as are necessary to make such immediate repairs to a unit or common element within the common interest community as are required to protect the health, safety, and welfare of the unitś owners.

Last modified: May 3, 2006

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Georgia Code - Building and Housing - Title 8, Section 8-2-42

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