Commerce Park Condo. Ass'n v. Little Deer Valley, LLC
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The case revolves around a dispute between the Commerce Park Condominium Association (Association) and Little Deer Valley, LLC (declarant), concerning the conversion of convertible land into a new structure, Building C, within the condominium. The declarant had recorded a declaration of condominium in 2005, reserving the right to create and build Building C on convertible land within five years. In 2010, shortly before the five-year deadline, the declarant recorded an amendment to the declaration and a new site plan, asserting that this action converted the convertible land. However, the Association contended that the amendment merely extended the declarant's right to convert for another five years, but did not actually convert the land.
The Superior Court ruled in favor of the Association, holding that the Condominium Act required the declarant to physically construct Building C for conversion to occur. The court reasoned that since the declarant did not engage in any substantial construction of Building C before the extended deadline of May 9, 2015, its right to do so expired at that time. The court also concluded that the declarant's attempt to begin construction well after the May 9, 2015 deadline would be contrary to the Condominium Act's purpose to protect buyers and establish reasonable expectations among the parties.
On appeal, the Supreme Court of New Hampshire reversed the lower court's decision. The court held that to convert convertible land, the Condominium Act required the declarant to file "appropriate instruments" within the five- to ten-year statutory deadline but did not require the declarant to physically construct Building C. The court also concluded that the declarant properly converted the convertible land when it filed the amended declaration and new site plan in 2010. Therefore, the declarant retained its statutory right to build Building C upon conversion.
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