An HOA lawyer can be a huge asset to any homeowners association or condominium. These communities work in much the same way as corporations, which means a lot of legal work is involved. Board members, who are volunteer homeowners, don’t always have the expertise necessary to carry out legal responsibilities. This is where lawyers come in.
What is an HOA Lawyer?
A homeowners association lawyer specializes in offering legal advice and representation to HOAs and condominium associations. An HOA lawyer must be well-versed in various legal areas, including real estate, contracts, and litigation.
Homeowners associations can hire independent counsel or have a law firm on retainer. Many acquire the services of an HOA management company, whose in-house legal department assists HOAs in all legal matters.
HOA Lawyer for Associations vs HOA Attorney for Homeowners
It is important to differentiate the role of a lawyer for HOAs from that of a lawyer for homeowners. For associations, an HOA lawyer helps interpret and amend governing documents, collect unpaid dues, mitigate risks, ensure legal compliance, and resolve disputes. A lawyer can also represent the HOA and its board in the event of civil litigation.
On the other hand, for homeowners, an attorney represents the interests of the individual owner. They can represent the homeowner in case of a dispute or civil litigation with the HOA. Lawsuits and legal conflicts can happen between homeowners and associations—they are quite common. But whereas an owner’s attorney serves as their defense, the HOA’s attorney represents the association’s interests and the board.
The Benefits of Hiring an HOA Lawyer
Why should an HOA have a lawyer in the first place? No matter how harmonious an HOA is, there will come a time when it will need the services of a lawyer. Here are the benefits of hiring an HOA lawyer.
1. Interpreting and Amending Governing Documents
Homeowners associations must adhere to federal, state, and local laws and their own governing documents. These laws and documents can be hard to understand, especially for board members with no legal background. An attorney can help interpret the law and the governing documents, allowing the board to make better decisions.
Additionally, a lawyer can also assist with amendments. Sometimes, an HOA will need to amend its existing documents or write a resolution. When that happens, an HOA lawyer can draft the amendment or resolution using the appropriate legal terms. The lawyer can also ensure that the change or new policy aligns with existing provisions and the law.
2. Collecting Unpaid Fees and Fines
Many community associations struggle with homeowners who fail to pay dues or fines. Some homeowners lack the funds to do so, while others simply refuse to pay. Boards must use various methods to collect these outstanding fees, including imposing late charges and revoking certain homeowner privileges.
The board must seek assistance from an HOA lawyer for further action, such as filing a lawsuit or placing a lien. A lawyer can help ensure the HOA’s actions comply with the governing documents and the law.
3. Representing the HOA
It is not uncommon for an HOA or condo association to be sued. If the HOA is sued by an owner or vendor, it must have a lawyer to act as its representative and defense. Sometimes, lawsuits can also name the board members directly. In most cases, the HOA’s lawyer will also represent these board members as they are the association’s figureheads.
Of course, not all lawsuits will wind up in court. A lawyer can help the association settle out of court or sift through which threats hold weight. Even if an owner’s threat of a lawsuit doesn’t have any merit, it’s still better to have a lawyer to cover all bases.
4. Ensuring Compliance
The laws governing HOAs are complex and always changing. Most of the time, board members can’t keep up with these changes and new laws. Fortunately, it’s part of a lawyer’s job to stay informed and ensure their clients remain in compliance with legal requirements. Whether it has to do with fair housing laws, zoning regulations, or corporate reporting, a lawyer can be of service.
5. Mitigating Risks
With HOA communities, there are always legal risks involved. Homeowners, vendors, and guests may claim property damage or injury due to the association’s negligence. A lawyer can identify these risks and minimize them for the association. Doing this will help protect the HOA’s financial interests and ensure a harmonious community.
6. Resolving Disputes
There is no such thing as a perfect community. With residents coming from different backgrounds and having differing opinions, conflicts are bound to arise. It is also normal for homeowners to disagree with some of the association’s policies.
When these things happen, an HOA lawyer can step in to ensure disputes don’t escalate. Lawyers can adopt dispute resolution tactics such as negotiation, mediation, and arbitration. In doing so, they can facilitate open communication and assist in achieving a compromise. Should disputes boil over, a lawyer can also help represent the HOA.
7. Providing Legal Advice
Homeowners associations face an assortment of legal issues all the time. Some of them are unique to individual HOAs, while others are more general. Whatever the case may be, an HOA lawyer can provide valuable advice, helping the association tackle issues with legal finesse. Board members can also turn to their lawyer if they are uncertain about an action or decision.
How Much Does an HOA Lawyer Cost?
There are a few factors that can affect lawyer fees: experience, case complexity, and geographic location. Lawyers tend to cost more in bigger cities or if they have an extensive legal background. More complex cases also demand a higher price.
In general, homeowners associations in Texas can expect to pay somewhere between $150 to $500 per hour. Many lawyers request an initial retainer fee of $5,000, but this can also vary. It is a good idea for HOA boards to shop around first to find the best lawyer for their community.
How to Find an HOA Lawyer in Texas
To find a good HOA lawyer in Texas, board members should employ a thorough search and selection process. Associations can ask for referrals from other communities, vendors, or even management companies. A quick search online will also turn up countless results.
Speaking of searching online, HOA boards should also remember to check reviews. Many clients use online platforms to leave reviews. Once an HOA has a list of candidates, asking for testimonials or references is also wise.
Additionally, board members should not forget to verify a lawyer’s credentials. Confirm the lawyer’s qualifications and identity. A good way to do this is to look through the different bar associations in Texas.
Once an HOA has a list of candidates, the board should interview them. An interview will help the board get a more personal view of the lawyer and their characteristics. This is also a good time to ask lawyers about their values.
Compatibility is essential. If a lawyer’s values don’t align with the association’s, they will clash every step of the way. It is essential for an HOA to find someone who matches the association’s personality and principles.
Finally, don’t forget to monitor their performance. Many lawyers put their best foot forward for the first few months before showing their true colors as time goes on. Similar to vendors, performance evaluations can help the board decide whether to renew their business relationship with a lawyer or law firm.
The Bottom Line
It is clear that an HOA lawyer serves a valuable purpose, and community associations would be wise to employ one. Many management companies offer legal assistance in addition to HOA management and financial services. When in doubt, boards should ask their HOA management company for guidance.
Graham Management offers exceptional HOA management services, including legal compliance, to Houston communities. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.
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