Involving Legal Counsel

Started by HeatherJ1 • 6 replies • 1204 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

HeatherJ1 (South Carolina)
Posts: 89

Posted:

How often should a HOA involve legal counsel? Should it be for every single C&R violation? What about for liens for nonpayment of HOA dues? I'm in SC so in this state, a lien can be issued for $10 but is it better for us to use an attorney?

What percentage of your HOA budget do you spend on legal counsel?

Thanks guys!!! Just curious as we are putting together our budget for next year. I'm obviously very new in all of this and you guys are always so helpful!!!!

(I'm sure I'll have many more questions)

SusanW1 (Michigan)
Posts: 5,202

Posted:

You asked:
How often should a HOA involve legal counsel?

I say ONLY as a last resort.

Why? Because the HOA should have all the policies and procedures IN WRITING that explain the steps for overdue assessments/dues and for violations. When all those steps have been exhausted, then it is time to get the attorney involved.

Your county clerk can tell you how to file and lein and if you need an attorney.

Attorneys cost $$ you know.

HeatherJ1 (South Carolina)
Posts: 89

Posted:

See, that is what I kinda thought. We have already this year spent close to $1000 on legal counsel. And our budget was only $500 so we've doubled it.

How do I nicely suggest this to the HOA board? We have a meeting this weekend.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Suggest that you go over all your policies and procedures and make sure that the HOA has exhausted all avenues before seeking advice from attorney. Establish a committee if needed, to go over all the steps taken before making that call.

On the other hand, if no one wants to do this work, then making that call gets easier and easier. You may have to adjust your budget.

With the economy the way it is, all boards should make sure that their ducks are in a row.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Heather,

I would say that whenever the board is in doubt about what they are doing, they should seek legal advice. If the board has adopted a collection policy they must be certain the steps they want to take are legal actions. If in doubt, they should consult with an attorney. If the board is not certain as to whether or not they have the right to perform a certain action they should consult with an attorney. It's much better to be safe than sorry! I'm not promoting seeking legal advice for every little thing, but if you cannot obtain advice from a state agency or any other type of HOA educational entity, then consulting with an attorney may be a wise thing to do.

HeatherJ1 (South Carolina)
Posts: 89

Posted:

Thanks, Mary. Also good advice. I think the issue is that some on our board are using the counsel IMMEDIATELY before investigating anything on their own. They call the lawyer very quickly and it is adding up. I know it's good to cover your butt, but also, it's good to not spend all of the HOA dues on legal fees out of being scared of a lawsuit. Afterall, if the board knows the processes, knows the C&R's, and follows the procedures, we shouldn't be so scared to enact on them.

I think in the very least, we need to establish REASONS to call the lawyer and maybe email the board and ask if it's a legitimate reason and take a quick vote on it.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Heather,

Are there any org's that offer HOA classes? Here in the Phx area there are several org's that offer classes and in recent years several cities have also started offering classes. This is extremely helpful to the board members. AZ doesn't have a state agency that oversees HOAs, as is the case with many states. Education is a very important aspect of the HOA industry. Board members not only have to be familiar with their gov docs, but also state and Fed laws. Being a board member can be a daunting task for some.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here