By J.D. Tuccille | Reason
Outvoted by One Property Owner
In 2018, Jie Cao and Haining Xia purchased a condominium at Dorsey Place in Tempe, Arizona. Over time, PFP Dorsey, an investment company, acquired 90 of the 96 units in the complex. According to the covenants, conditions, and restrictions (CC&Rs) that applied to the complex, owners were subject to state regulations regarding condominiums, and each unit had one vote within the association. That meant that PFP Dorsey controlled 90 out of 96 votes.
At the time, Arizona law (Section 33-1228) allowed an 80 percent supermajority (later increased to 95 percent) to terminate a condominium agreement and to “provide that all the common elements and units of the condominium shall be sold following termination.” PFP Dorsey exercised its votes to force the remaining individual owners to sell their units to the investment company.
