Managing a homeowners association involves navigating legal issues, and an HOA attorney is just the right person to help. Board members are often volunteers from the community, and they don’t always have the legal expertise needed to keep the association afloat. An attorney not only advises the board on decisions but also serves as the HOA’s legal representative.
What is an HOA Attorney?
An HOA attorney, otherwise known as an HOA lawyer, is a professional specializing in advising and representing homeowners associations in legal matters. They can also apply to condominiums through a condo association attorney.
Attorneys are experts in real estate, contracts, litigation, and especially HOA law. They help associations remain compliant and provide helpful insights for legal decisions. Moreover, attorneys can assist boards in navigating disputes with homeowners or vendors.
It is important to remember that the HOA attorney represents the association itself. They do not represent the board members or the homeowners. For this reason, HOA attorneys always prioritize the association’s interests. They don’t offer legal advice that would benefit individuals.
What Does an HOA Attorney Do?
Some communities may hesitate to hire legal counsel, especially if they don’t have a large budget. But hiring an attorney opens the door to many benefits for the association, as they cover a wide range of responsibilities.
A homeowners association attorney can draft, amend, and interpret governing documents and ensure legal compliance. They can help collect unpaid dues, enforce the rules, manage risk and liability, and resolve disputes. Furthermore, attorneys can advise the board on legal issues and represent the HOA in litigation.
1. Draft and Amend Governing Documents
Attorneys can draft an association’s initial governing documents and subsequently help amend them. They can ensure that these amendments align with existing provisions and state laws.
2. Ensure Legal Compliance
Attorneys can help the board interpret the governing documents, including the CC&Rs and bylaws. Additionally, they can ensure the association complies with all applicable federal, state, and local laws.
3. Collect Unpaid Dues
Delinquent homeowners can negatively impact the HOA’s finances. An HOA attorney can help collect unpaid dues by filing a lawsuit or placing a lien on the home. If worst comes to worst, they can even assist with foreclosure proceedings.
4. Enforce the Rules
Enforcing the rules is a big part of the HOA board’s job, but it is not always easy. They must navigate notice requirements, hearings, and permissible penalties. The board might not know what processes and conditions to meet, but an attorney definitely will.
5. Manage Risk and Liability
Attorneys can evaluate the association’s position in terms of risk, listing potential exposures and how best to prevent them. Should the association face liability, an attorney can assist the board on how to respond and move forward.
6. Resolve Disputes
A homeowners association lawyer can help the board with dispute resolution. This includes implementing internal resolution methods and alternative dispute resolution, such as mediation and arbitration. As a neutral party, the lawyer can guide both parties in reaching a compromise or outcome that works for everyone.
7. Provide Legal Advice
Board members make legal decisions that can have long-term effects on the association. Instead of relying on advice from strangers online or their own limited experience, boards are better off seeking direction from a legal professional.
8. Represent the HOA
Associations are no strangers to lawsuits. Some carry weight, while others do not. An HOA litigation attorney can help associations settle these suits and, if things escalate, represent them in court.
How to Hire the Right HOA Attorney
Some associations hire attorneys through law firms, while others seek independent counsel. Regardless of which one an association prefers, the search for a compatible and capable one generally follows the same process. Here are the steps for hiring HOA attorneys.
1. Look Online
Most associations start with an online sweep for attorneys in their area. While a Google search can turn up many results, the College of Community Association Lawyers (CCAL) directory is a better place to look. This directory lists all CCALs, recognized by the Community Associations Institute, by state.
2. Ask for Referrals
Referrals are a good way to get leads on potential candidates who have already worked with similar communities. Board members should ask fellow community leaders for recommendations on capable lawyers. Of course, referrals still need to go through a vetting process, no matter how glowing their reviews are.
3. Verify Credentials
The next step is to check the credentials of the potential candidates. Confirm their license to practice law in the state or local area where the association is located. It is also important to ensure they have prior experience with HOA laws and community associations.
4. Conduct an Interview
When looking for an attorney for HOA issues, boards should never skip the interview. This allows board members to get to know the potential candidates more deeply.
Ask about their expertise and how they handle different situations relevant to HOAs. Talk about their past experience with similar communities and how they communicate with their clients. This is also a good time to discuss their fee structure.
Finally, boards shouldn’t forget to detail the association’s needs. Discuss what the association expects from them if they get hired. This will help keep everyone on the same page from day one.
5. Discuss Billing
While the interview process can touch on fees, it’s essential to have a separate discussion on billing. This should include a clear breakdown of the fees and any additional charges that aren’t included in the package. For invoices, it is best to request a detailed invoice with an itemized list of expenses.
6. Monitor Performance
The process doesn’t end at the contract signing. It is an ongoing effort that includes performance evaluations and discussions. Boards should monitor their HOA attorney’s work and ensure they fulfill their obligations under the agreement. This will help the board decide whether to renew the contract or switch to a different law firm or lawyer.
How Much Does an HOA Lawyer Cost?
Lawyers typically charge on an hourly basis, but the exact cost can vary by experience and location. Some even charge a higher fee if the case is more complex.
On average, an HOA attorney typically costs between $250 and $500 per hour. In addition to this hourly rate, some attorneys may require a retainer. This is an upfront payment that works in much the same way as a deposit. Retainer fees can range from $1,000 to $5,000, again depending on factors such as experience, location, and case complexity.
A Worthwhile Investment
An HOA attorney is a valuable asset, especially if the association’s board is inexperienced. They can help with a wide array of legal issues and decisions, ensuring the community remains compliant and risk-free. While the hiring process can be time-consuming, it is well worth going through for the benefits these professionals offer.
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