managing expections

Managing condo owners’ expectations

Condo owners need to respect boundaries and understand when board directors are “on duty” as a director and when they are “off duty” and being an owner. Let me create a scenario. It’s a Saturday afternoon and you’re out for a walk with your dog. You see a neighbor walking towards you and as he approaches, he begins discussing a recent decision the condo board has made. You are enjoying being outside and do not want to talk shop with an owner and answer his questions. This is a clear example of an owner not respecting boundaries. Nor is it appropriate that a director discusses a decision made by the… Read More

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Important Potential Tort Liabilities for HOAs to Understand

HOAs have historically thought that they were exempt from liability from their residents. What HOAs and residents need to understand is that there are certain legal theories that HOAs can be potentially held liable. Depending on the state where the community is located and the CC&Rs of the HOA, there are many potential areas where HOAs can be liable to their residents for damages. In order for HOAs to fully protect themselves, it is vital that they carefully review their agreements and determine what areas need to be revised or improved upon. If your HOA is looking to shield itself from further liability with residents, it is important to have… Read More

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Social Media vs. Relationships with Neighbors

Social Media vs. Relationships with Neighbors: Why Your HOA Must Know the Difference

Why Knowing Your Neighbors Is Rare Today In the United States, it used to be common to know your neighbors on your street or in your apartment building. In fact, your neighbors often stayed in the same home for longer periods of time, which made it possible for lifelong friendships in neighborhoods to form. Today, the Internet has greatly changed how we interact with others and the increase of airplane travel has made many families have the opportunity to move more frequently than they did in the past. Due to the limited in person interactions and prominence of digital conference calls, chatrooms, and social media platforms, the way neighbors communicate… Read More

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5 Risks of Self-Managed Community Associations

Self-managed community associations typically avoid professional management companies because of the cost. However, these associations have to ask themselves, “is the liability worth the risk?” As financial and legal responsibilities increase, so too do the risks associated with self-managed community associations. The Risky Business of Being a Self-Managed Community Association The majority of self-managed community associations are run by volunteer board members who typically work full-time jobs, don’t have the time to properly run a community effectively, and lack the industry experience needed to mitigate common risks. With this in mind, the five most common risks associated with self-managed community associations include: Meeting Minutes Compliance: Meeting minutes must be recorded,… Read More

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Mortgage holders don't like it when property owners do not pay their maintenance fees

Use Riders to Collect Delinquent HOA Fees

If you have purchased a condominium or property in an HOA you have signed a rider. For condos its called a Condo Rider. For HOAs its Called a PUD Rider. This rider is an attachment to the document recorded in the land records to secure the note given by the lender (aka mortgage). These riders are a path to collect delinquent HOA and Condo Fees. Banks Have a Stake in Assessments Being Paid One of the most important items contained in the Rider deals with maintenance fees. It is very important to the lenders that these fees are current. The mortgage company has an interest in the property. The mortgage company wants… Read More

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How Do You Know if Your HOA or Condo is Under Water?

The term “under water” in real estate usually refers to a property that has no equity. That is to say that the money owed on it is more than what it can sell for. Seldom do we hear about an entire HOA or Condominium Association being “under water.” So the question today is: How do you know if your HOA or Condo is under water? The brutal truth is that your entire community association can be under water. Unfortunately in many communities, nobody in authority acknowledges it until it’s too late. Too late is when homeowners are hit with a large special assessment for a capital improvement project. A special assessment… Read More

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