Declarant Consent to Arbitration Provision Amendment Approved by Supreme Court

The Colorado Supreme Court upheld a provision in the original declaration prohibiting amendment of the document's mandatory arbitration requirement for construction defect actions without the declarant's consent. In this case, the owners voted to amend the declaration to remove the arbitration provision. The arbitration provision expressly required that before any amendment, the declarant must consent which the Association did not obtain. The Association argued that the provision violated the Colorado Common Interest Ownership Act by requiring a percentage greater than 67% for an amendment to the declaration. But, the Supreme Court found that CCIOA only limits the percentage requirement for amendments and does not preclude other restrictions on amendments, including one mandating declarant consent.

Vallagio at Inverness Residential Condo. Ass’n v. Metro. Homes, Inc., 2017 CO 69 (Colo. June 5, 2017).


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