Posted:
Thereâs a lot of emotional language in your question (which adds nothing to the discussion) so letâs start with the basics. First, what do you mean by the attorneyâs âmilking the fees of the association and the homeowners from the administrative work like collecting back HOA fees and liability insurance claims handled by the insurance company?â You donât explain what you mean by post judgement lawyer fees either.
Attorneys donât work for free â phone calls, legal research, court filing fees, drafting all sorts of legal documents, all take time and money, and the longer the legal matter persists the more expensive it gets. Thatâ. As a former Board treasurer, I can also tell you there could be additional costs in collecting delinquent assessments like garnishing wages or rent (if the owner is renting out the home), skip tracing (if the owner has disappeared), dealing with bankruptcies and all that.
You didnât say if youâre on the board â if you are, ask for an itemized list of charges related to what the attorney did for each legal matter you asked him/her to address on the associationâs behalf. When associations hire attorneys, they should ask for a list of charges so theyâll have an estimate as to what itâll cost to pursue someone for delinquent fees, represent the association in a lawsuit, etc. In my community, we sign a letter of engagement with our attorney every year, which includes a schedule of charges. We also get a certain number of hours we can use to ask questions at no charge. One person was designated the primary contact (either the president or treasurer) and we would usually discuss contacting the attorney at a board meeting before we did it so everyone would know what was up when that expense showed up on next monthâs income/expense report. Most times, we saved money by discussing the matter carefully and checking our documents, finding the answer in there, which saved a phone call or email.
Our communityâs collection policy also states delinquent homeowners also have to reimburse the associationâs court costs, attorneyâs fees and other collection costs related to collecting the debt. If you donât have a similar policy in your community, you might want to start by enacting one â sometimes the prospect of paying delinquent fees, late fees and all those collection costs are enough to encourage deadbeats to stop it before it starts.
Finally, some of you wonât like my usual response to legal questions, but here it is again â if you want answers to legal questions, you need to hire an attorney. We arenât lawyers and whatâs true in my state isnât necessarily true in yours. If you feel your attorney is billing for stuff you didnât get or is unwilling to discuss costs with you, it may be time to hire someone who will. Depending on the situation, you might also be able to file a complaint with your local bar association.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius