Lawyer for your HOA

Curious as to what others think of this:

1. A HOA where I own a property needed legal work for some transactions with third parties: routine work such as contracts with vendors, borrowing money from a bank and the like.

2. The property manager's firm had its own lawyer who was an employee of the property management firm.

3. The property manager told the board that the HOA had to use the property manager's lawyer.

4. The property manager's lawyer did legal work for the transactions, and as part of the transactions, the property manager's lawyer negotiated documents that provided for a commission in the tens of thousands of dollars, payable to the property manager's firm. The property manager's firm did make a few phone calls (to find a vendor) in connection with the transactions.

5. The property manager's lawyer charged the HOA five figures for his legal work, which took a few hours.

6. The HOA's board did not approve any of this.

To a non-lawyer, does this sound acceptable? The HOA board said that the property manager said that it was all fine, so the board did not question any of this.

-- from the facts presented, the attorney is being paid (or attempting to be paid) by at least two entities and so has at least two clients, namely: The property manager's firm and the HOA.

-- The attorney's drafting of documents that could benefit/harm either of the two parties involves conflicts of interests.

-- The HOA Board's non-approval of this shows the attorney to likely have violated several Rules of Professional Conduct.

-- Barring more information about the contract between the HOA and property manager firm, I do not now feel that the HOA is obliged to pay the attorney.

-- I can see how the contract might allow this. But in my experience with attorneys and the Rules of Professional Conduct, this attorney is far too lax for my comfort.

More weird stuff.

The present Board needs to have a serious discussion about the Property Management company. Look at the present contract that you have with the company to determine if the company is in their rights to do what they did. Second of all, begin to determine what you as a Board would like for services from a Property Management Company. Last of all, begin to interview new companies.

Chris,
I agree with Augustine on this one. I doubt some of your claim since the lawyer almost certainly does not work for the PMC. They may have him on a retainer and refer him/her to HOAs but it is always the HOA boards decision who they use for legal services. What would happen if you ever get in to a contractual dispute with the PMC? You probably would not be able to use this same attorney because he represents the Management Company.

In my HOA we use to different Law firms. The first does collections and is associated with the PMC. The second is a attorney that our last PMC used and since we are no longer with them we use him for the occasional legal items that come up from time to time.

One of my favorite sayings about attorneys is "99% of them ruin it for the good ones"

Well then, the next move is up to them. If they've let the property get away with this and everything you've expressed concern sbout, the next move is up to you and your neighbors.

This sort of thing happens and continues when the board (and by extension, the homeowners) let it happen. Some boards figure the property manager knows all this stuff so well let him/her or them Do everything, including the thinking so we won't have to. And then we can use the property as the fall person.

Meanehile, the homeowners think, well it looks like stuff is getting done - the community is still standing, so unless something really awful happens or February lands on my doorstep and I step in it, then I'll say sonething. Of course, by the time that happens, three will be a ton of caca to pick up, along with getting rid of and the flies and rats (because rats eat caca)

after all your posts on the property manager, it's past time for you to talk to your neighbors and get them involved - and yes, you'll have to go out with your mask, do the social distancing and have at it. If they still don't care, you may have a heavy decision to make as to whether you want to keep a home in this comm or take legal action. Good luck in whatever you decide to do

Chris,
If I got a letter from a lawyer that is on the PMC payroll it would only be slightly higher level of concern than if I got a violation notice. On the other hand if I get a letter from the Firm Do, We, Cheatem and How I know it is more serious. My guess is this lawyer is probably a junior lawyer that maybe looking to climb the ladder or worse someone who can get a job at a real law firm.

Thanks, everyone. I did some further digging and board members objected to the transactions with third parties, didn't understand conflicts of interest, and definitely did not even vote on anything. Seems like everyone is at fault here, but are property managers bound by ethics rules or professional standards of conduct?

Did not the BOD have to approve the payment?

Is this, Chris, the same HOA where the PM is on the Board? I've asked you this question about (I think) the last three PM complaints you've made about PMs and I believe you haven't replied.

Since you seem to be in some sort of legal occupation, just what does the contract between your HOA & the PM firm say about such matters?

Afraid it's high time you take action with your fellow owners and throw out this Board at the next election.

No. There is no lawsuit here. If people are suspecting that I'm a lawyer who represents people in lawsuits, that's false. I wouldn't even know how to sue someone.

I just see crazy things and often need a sanity check--this board has been very helpful in showing me in a lot of situations why I ought to just accept things.

A PM should not be on a HOA board. They may attend the meetings but they are not HOA members. Thus not eligible to be on the HOA board.

For me, I use lawyers like "tools". They aren't anything more than hiring an electrician. You need someone licensed to do certain work. A lawyer is one of them.