Appeals Court Holds Condominium Developer’s Lender Cannot Foreclose on Common Areas
Earlier this month, the Massachusetts Appeals Court held that a bank that loaned money to a condominium developer and gave each unit buyer a partial mortgage discharge upon purchase did not have a remaining mortgage interest in undeveloped common areas of the Condominium. Specifically, in Trustees of the Beechwood Village Condominium Trust vs. USAlliance Federal Credit Union, No. 18-P-89, the Massachusetts Appeals Court stated: “We conclude that all of the land associated with the condominium development, including the common area, was