PegM1 (Pennsylvania)
Posts: 26
Posts: 26
Posted:
I'm interested in hearing anyone's thoughts on the following: Should the HOA's attorney be the same as the HOA's management company? Is there a conflict of interest?
Thank you.
Thank you.
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Management Company Attorney Question
Started by PegM1 • 12 replies • 1070 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
No conflict. Attorney's are free to hire. Many HOA's choose to use the same attorney the MC may use. It's less hassle. However, I am more of one of those who researches the type of lawyer I need. I believe lawyers are "service tools" for me to hire to provide the professional service needed. Not unlike hiring an Electrician or plumber since I am not licensed to practice law. So if their lawyer is a Real Estate attorney, most likely would not hire them. Don't need a Real Estate attorney for a HOA most of the time.
If your MC insists on ONLY using their attorney, then I would question the conflict of interest issue with your MC. Don't think they should force you to use their attorney. The MC is a sub-contractor to the HOA. You pay them for a service. Which forcing you to use their own services, should be defined in the contract.
If your MC insists on ONLY using their attorney, then I would question the conflict of interest issue with your MC. Don't think they should force you to use their attorney. The MC is a sub-contractor to the HOA. You pay them for a service. Which forcing you to use their own services, should be defined in the contract.
Former HOA President
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
I think it's better to have an HOA attorney that's not affiliated with your MC. I like th idea of having two separate entities looking after the interests of our HOA instead of only one.
I do think a conflict of interest could arise if your HOA has legal hassles with your MC and your HOA attorney is their employee or affiliate.
If PA law is as complicated as CA HOA legislation, it's best to have an attorney that specializes in such law.
I do think a conflict of interest could arise if your HOA has legal hassles with your MC and your HOA attorney is their employee or affiliate.
If PA law is as complicated as CA HOA legislation, it's best to have an attorney that specializes in such law.
BenA2 (Texas)
Posts: 1,273
Posts: 1,273
Posted:
My guess is that most attorneys would not have both as clients because of the potential for a conflict of interest. In many, if not most, cases the interests of both would be in line with one another but what happens if they are not? The attorney could not ethically put themselves in a position where the interest of one client conflicts with the other's.
If the attorney is working for the management company and part of their job is doing legal work for the HOA (reviewing documents, sending out legal notices, etc. on behalf of the management company) there would be no conflict because their client is the management company, not the HOA.
If the attorney is working for the management company and part of their job is doing legal work for the HOA (reviewing documents, sending out legal notices, etc. on behalf of the management company) there would be no conflict because their client is the management company, not the HOA.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
I do not see it as an issue unless there is a legal conflict between the BOD and the MC. In this case, the BOD should hire a different attorney.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
There was enough concern about this in Florida last year that the condo statute, FS 718, was changed to read, "An association may not hire an attorney who represents the management company of the association."
A pending bill in this year's legislative session would strike that language, once again making it OK for a condo association to hire an attorney who represents the MC.
The pending bill was written by a legislator with a long history of anti-owner legislation when it comes to condos and, to a lesser extent, HOAs. Just the fact that this guy wants to remove that language is enough for me to decide that the restriction is a good one.
There are any number of ways an MC could give bad advice to a board or steer them in the wrong direction. Some directors decide to get a legal opinion. Does anyone think that the same attorney who represents your MC is going to give you a truly unbiased opinion on whatever you think the MC is doing wrong? Hah! Pull the other one.
A pending bill in this year's legislative session would strike that language, once again making it OK for a condo association to hire an attorney who represents the MC.
The pending bill was written by a legislator with a long history of anti-owner legislation when it comes to condos and, to a lesser extent, HOAs. Just the fact that this guy wants to remove that language is enough for me to decide that the restriction is a good one.
There are any number of ways an MC could give bad advice to a board or steer them in the wrong direction. Some directors decide to get a legal opinion. Does anyone think that the same attorney who represents your MC is going to give you a truly unbiased opinion on whatever you think the MC is doing wrong? Hah! Pull the other one.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Quote:
Posted By PegM1 on 02/24/2018 2:52 PM
I'm interested in hearing anyone's thoughts on the following: Should the HOA's attorney be the same as the HOA's management company? Is there a conflict of interest?
Thank you.
I'm interested in hearing anyone's thoughts on the following: Should the HOA's attorney be the same as the HOA's management company? Is there a conflict of interest?
Thank you.
I have never encountered such a situation and believe this would not be prudent. Some developers while in control of the HOA Board might consider doing this; but no homeowner controlled Board should ever consider it IMO.
My thoughts on your two questions are:
1) Never,
2) Absolutely under many circumstances.
PegM, do you have a specific case which prompted this question?
PaulB12 (Virginia)
Posts: 56
Posts: 56
Posted:
Big conflict, never do this.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
It might depend on what the attorney does for the management company vs. the Association, but in general, I err on the side of caution and say no. What would happen if the management company AND association is named in a lawsuit? Who do you represent? What if the association decides legal action is warranted against the property manager - who do you represent?
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Typically, there would be no conflict unless the Association is bringing action against the MC. However, I think it's best that the Association hires it's own attorney and not use the one the MC uses to remove any doubt of conflict.
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
I would NEVER allow my attorney to represent any of my clients!
TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Peg,
If it adds weight, I know that Richard and Roger own Management companies and they say the Association should get their own attorney.
If it adds weight, I know that Richard and Roger own Management companies and they say the Association should get their own attorney.
JoniL (South Carolina)
Posts: 47
Posts: 47
Posted:
Our do called attorney was brought in by management, homeowners who have issue can not even talk to them as they always side with management. We really need the separate attorney.
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