Running an HOA can be challenging. After all, the Board of Directors has several responsibilities, ranging from maintaining community property and enforcing rules to managing finances and resolving disputes. Having an attorney on your side helps keep your HOA legally compliant and free of potential lawsuits. Today, we’re reviewing why an HOA should seek legal counsel, what an attorney can do for your community, and how to find the right professional for you.
Contents of This Article:
- Why Should an HOA Seek Legal Counsel?
- What Can an HOA Attorney Do For You?
- How to Find an HOA Attorney
- Find the Right HOA Management Company for You
Why Should an HOA Seek Legal Counsel?
Whether you live in a homeowners association (HOA) or you’re a board member serving your community, you know there are several rules and regulations to follow. With these rules, HOAs need the help of an attorney to assist with potentially complex legal issues.
Philadelphia property managers know that there are several instances where legal counsel can be helpful. That said, finding an attorney that protects the best interests of your community can be a process. Before we go over how to find one, here are some of the reasons why you need one.
Handling Insurance Claims- If you need help negotiating or processing insurance claims, having legal counsel can help ensure you get the coverage you need.- Amending or Rewriting Governing Documents- If your HOA board has to amend or rewrite a governing document, such as the bylaws or the covenants, conditions, and restrictions (CC&Rs), you may want to seek legal counsel. Most of these are governed by law, so having legal assistance is key.
- Enforcing HOA Rules and Regulations- If you’re having trouble enforcing rules or regulations, an attorney can help while staying legally compliant.
- Resolving Election or Voting Disputes– If there are concerns around elections or voting, an attorney can help mediate and resolve these conflicts.
- Responding to Legal Action Against the HOA- If someone files a legal action against your HOA, getting an attorney involved is crucial. Handling this on your own can worsen the situation.
- Managing Fiduciary and Financial Responsibilities– Legal guidance is helpful when managing financial obligations that impact the whole community. An attorney can help you stay in compliance with local regulations and laws.
What Can an HOA Attorney Do For You?
If your HOA needs legal counsel for an issue, what can an attorney do for you? Here are some of the main things you’ll need an attorney for.
- Prevent Lawsuits- One of the main things an attorney can do for your HOA is make legally sound decisions to reduce the risk of lawsuits. They also give guidance on compliance and best practices, working to keep your community free of legal challenges.
- Keep Disputes Out of Court- Going to court is an incredibly long and costly process. A good attorney can help you settle disputes outside of court, saving everyone time and money.
- Interpret Laws and Documents- An HOA’s governing documents and laws can be hard to understand. If you have an attorney, they can help you interpret them and explain things further if necessary.
- Represent Your HOA- If a homeowner experiences discrimination, neglect, or other major issues, they may pursue legal action against your HOA. An attorney can offer legal representation.
- Collect Assessments– Sometimes, homeowner don’t pay their assessments. If you’ve already imposed late fees or taken away priveliges and they still haven’t paid, you may want to take legal action. An attorney can help file a lawsuit or place a lien on someone’s property.
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How to Find an HOA Attorney
If you don’t already have legal counsel for your HOA, you’ll want to find an attorney to partner with. A good place to start is by asking for referrals from other HOAs or property management companies. They may have good recommendations for trusted legal professionals that they currently work with or have worked with in the past.
You can also search online for local attorneys specializing in HOA management and real estate law. Look for attorneys with strong client reviews, testimonials, and information about their past experiences with homeowners associations.
Once you’ve found a few potential candidates, schedule calls to discuss your needs and learn more about their experience. Asking as many questions as possible can help you find HOA legal counsel that fits the needs of your community.
What to Check When Hiring an Attorney
Choosing the right attorney is key to ensuring your HOA receives the best legal support available. Here are some important factors to consider.
- Experience- Find an attorney with extensive experience in HOA and real estate law. That way, you know they have experience navigating similar legal challenges as the ones your HOA may face.
- Qualifications- Don’t hire someone without first checking their qualifications. Check their educational background and certifications and confirm they’re licensed to practice in your state.
- Communication Skills- Good communication is crucial. Your attorney should be responsive and dedicated to informing the board about legal matters.
- Billing Practices– You’ll want to fully understand the attorney’s billing structure and rates. Ask any questions you may have about hourly fees, flat rates, or retainers, and request an estimate of costs for typical services. That way, there are no surprises later on.
Find the Right HOA Management Company for You
Finding HOA legal counsel for your community is crucial for any homeowners association. Without a qualified, experienced attorney, you may find yourself in costly legal battles, which is something you don’t want. So, do your research, find an attorney that meets your needs, and follow the rules and regulations of your HOA.
If you need help managing your HOA, look no further than Bay Property Management Group. Our team of reliable real estate professionals can help ensure your HOA gets the attention and care it needs. From creating annual budgets, coordinating meetings, performing inspections, and managing vendors, we’ve got it covered. Contact BMG today to learn more about our HOA management services in Philadelphia.
