Owner Improvements? Get it in Writing!

Any time an owner wishes to install a betterment or improvement on their property which is maintained by the association or the common elements, there should be a Maintenance and Indemnity Agreement to go along with it. A Maintenance and Indemnity Agreement is a binding contract holding the owner (and future owners) responsible for the installation and maintenance of an improvement. Maintenance and Indemnity Agreements are vital tools that give the association important protections from owner-completed work.

What Goes into a Maintenance and Indemnity Agreement?

True to its name, the main provisions of a Maintenance and Indemnity Agreement are:

1. To allocate all maintenance obligations to the owner; and
2. To indemnify the association and hold it harmless from any and all liability.

Depending on each unique betterment or improvement, a Maintenance and Indemnity Agreement may also contain the following contractual language:

• Conditions for approval for installation of the improvements;
• Specifications for the installation;
• Owner responsibility for obtaining necessary permits and approvals;
• Owner responsibility for choosing a qualified and licensed contractor;
• Owner responsibility for complying with applicable zoning, building, and local codes and ordinances;
• Grant of license by the association for the installation of the improvements;
• Owner responsibility for damage or loss to person or property arising out of the improvements;
• Authorization for the association to perform necessary maintenance if the owner fails to do so, at the owner’s sole cost;
• Agreement for the owner to remove and reinstall the improvements should they impede or impair the association’s required maintenance work; and
• Approval process required for removal or modification of the improvements.

Your association’s board of directors or architectural review committee can easily incorporate the Maintenance and Indemnity Agreement in its current request and approval procedures.

What About Modifications to Common Elements?

Maintenance and Indemnity Agreements are even more important if an owner wishes to install a betterment or improvement on a common element or limited common element. Because such improvements are technically on the common area, the association needs to clarify that it will not be assuming maintenance obligations for the improvement. The Maintenance and Indemnity Agreement will also ensure that the association controls the improvement’s impact and encroachment on the common element or limited common element.

Owners wishing to install additional improvements, modify or remove existing improvements should enter into these agreements to protect both the association and the owner.

Please contact an Altitude attorney at 303.432.9999 or [email protected] if you have any questions on the above or any other legal needs for your association.