Insights Into How Our Legal System Works

Why Community Associations Need To Hire An Association Attorney

12 October 2021 by Yolanda Lane

Community associations should always ensure that their residents' welfare is protected. While that is not always easy to do without experience, an association attorney can help ensure your community is in compliance. Read on to learn why community associations need to hire these legal practitioners.

Representing the Interests of the Association

Disputes may arise within the association or between the association and its members. These can lead to members suing the association. If there's no one to represent the association's interests in the court or at meetings, these disputes may escalate into full-blown litigation that could lead to a breakdown in communication between the parties and make the association pay fines.

An association attorney can prevent this from happening. They will serve as a liaison between members, the board of directors, and management to help the association stay solvent. They'll also act as an information resource, represent the community's interests in court or at meetings where there are disputes about property use or violations, and provide guidance on governance issues. This will prevent the conflicts from becoming bigger.

Creation or Amendment of Association Documents

If governing documents are incomplete or poorly written, owners may have trouble enforcing community rules and regulations against residents who do not follow the same standards. It may also make it difficult for board officers to understand their duties fully.

An association lawyer can review governing documents when the board considers modifications on behalf of all members. This involves creating and amending the covenants, conditions, and restrictions that outline community rules for residents. For instance, if a new owner wants to change their unit by removing some cabinets or changing carpeting color, an attorney will be required to review these proposed changes before they can be implemented. A well-written set of governing documents will ensure that owners receive notice of proposed changes, give authority to board officers for making decisions, and specify how transactions should be approved by owner vote or board approval.

Financial Statement Procedures and Review

If financial statement procedures are not followed correctly, the association may find itself in a sticky situation. Such a situation could involve a lawsuit from a member against the association or claims of breach of fiduciary duty that can plunge members into costly litigation.

To ensure compliance with accounting laws, associations need an attorney's help to make sure they're following all procedures correctly. Attorneys will keep a check on the association and ensure everything is done according to the state law to protect owners and directors from any liability issues.

Hiring association lawyers comes with great perks. They help with legal advice and representation against lawsuits. They'll also ensure the community is following the required laws. Contact an association attorney to learn more.

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