It’s the most wonderful time of
the year. The Red Sox are in the World Series, the leaves are turning, and I
can stop mowing my lawn. But, boy did it get colder
For condominiums and property
managers, it is the time of year to remind all owners and occupants that heat
should be kept at a minimum of 55 degrees during colder months and to identify
those units that have been abandoned or may be vacant due to death, divorce or
foreclosure.
The Trust should first attempt to
locate the owners and request that they either winterize or maintain heat in
the unit. Should the owner not be located or refuse to take any action, then the
Trust will need to step in. If possible, turn off water to vacant units. If a
condominium has shared common water pipes, water should be turned off inside
the unit and faucets opened to drain out as much water in the pipes as
possible. Drain the water from any water heater tanks. If water cannot be
turned off, then the Trust will need to have heat maintained in the unit and
place the account in the name of the Trust. Vacant units should also be
regularly inspected during the winter months to ensure heat is at no less than
55 degrees and that no other issues have arisen, such as wildlife seeking
shelter. The condominium’s Master Insurance policy will dictate that the Trust
undertake proactive action once it becomes aware of a hazardous condition on
the premises. An unheated vacant unit qualifies as a hazard to both common
areas and adjoining units. Failure to take action will give the insurance
company a reason to deny coverage should a pipe freeze or burst.
Trustees often believe that the
mortgage holder should take care of maintaining heat or winterization of vacant
units. In some instances, the mortgage holder may have already winterized bank
owned units. However, just because a bank may now own a unit, the Trust should
still verify that the unit was in fact winterized. The bank should have placed
a notice on the unit door acknowledging that it has undertaken winterization
action. In instances where the bank has not foreclosed, be aware that while
winterizing a vacant unit will certainly protect the bank’s collateral, there
is no obligation for it to do so. It will help if the Trust notifies the bank
of a unit’s occupancy status, but it may still be unable to service a
particular unit before colder weather arrives. Should the bank take no action,
then the Trust will need to do so. It is much better to pay a minimum amount or
heat as opposed to having a claim for substantial water damage denied.
Originally posted October 25, 2018 on tlawmtm.com.
Should you have any questions
regarding this article, please contact Laura Brandow at 781-817-4900 or via email
at lbrandow@lawmtm.com.
