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MaureenM1 (PA)
Posts: 344
Posted:
Our development is being transitioned to the homeonwers and we elected a new five member board last week. At our first Board meeting one of the board members suggested transitioning without an HOA attorney. He also suggested that the builder/developer pay the legal costs of we do go through an attorney.

There are still many items that fall under the developer's letter of credit that are incomplete (the builder is threatening to sue the developer if the items are not done). The township is overseeing that the developer complete the development before this monies are released.

The attorney that we would hire wants a 2,500 retainer, however, he has experience in transitions and informed our PM that he will not go over that amount.

I disagree that we should transition without legal advice from an HOA attorney, especially with all the unfinished items that is the responsiblity of the developer.

Your thoughts are appreciated.
MaryA1 (Arizona)
Posts: 388
Posted:
Maureen,

I agree, an attorney would be a good idea especially if you have amenities such as a pool,clubhouse, etc. As for the cost of the attorney; IMO that would be a cost for the HOA to absorb not the declarant. A retainer of $2,500 seems a bit high but then I'm not familiar with your assn and all that is involved to transition. The board can always shop around and get other quotes just to see if this attorney's fee is in line with what others would charge.
NameW (Virginia)
Posts: 74
Posted:
Get an attorney and NOT one selected by the developer.

Have him examine anything and everything, including any outstanding debts, liens, etc. Also have him go through your Covenants just to be sure it is a legal document.

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