HOAleader.com - Tip of the Week - September 18, 2009
Published: Thu, 09/17/09
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Be On the Lookout for Questionable Fees
from Your HOA Management Company
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Board members are telling us that they're noticing new and
unusual fees in their management company's bills.
They're not imagining things.
"What I'm seeing are a lot of attempts by management companies
to sneak in some add-on fees," we were told by Elizabeth White,
a shareholder and head of the community associations practice at
the law firm of LeClairRyan in Williamsburg, Va. "Because of the
economy, there may be a temptation for management companies to
come in at a lower monthly rate and recoup some of what they're
giving up with add-on fees. They look good when they're
submitting a proposal--they're really competitive or lower than
other companies--but when you start calculating what they're
going to charge, it's not as good as it looks."
The bad news for boards, however, is that some management
companies use that technique because it often works. "A lot of
times management companies are successful because boards may not
read the contract carefully enough," Elizabeth says.
She also provided this week's tip when she told us, "Boards may
be focusing on the regular rate, whether it's a monthly fee or a
per-unit rate. But you need to examine the whole business deal
of the management contract and not just what the monthly or
per-unit fee is going to be."
In a new article, Elizabeth and other attorneys who represent
condo and homeowners associations detail fees they've seen
slipped into their clients' management contracts and invoices.
They also offer tips for addressing them. You can see the article
here: http://www.hoaleader.com/members/335.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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HOA Management Fees: Beware These Questionable Fees; How Your
Association Can Address Them
Here, White and other attorneys who represent associations reveal
fees they've seen slipped into their clients' management
contracts and invoices. They also offer tips for addressing them.
Click here to read full article:
< http://www.hoaleader.com/members/335.cfm >
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HOA or Condo Insurance Checkup: Review Your Governing Documents
"Read carefully the [insurance] requirements of your own
governing documents," advises Robert Galvin. "Occasionally, I
find an association that
Click here to read full article:
< http://www.hoaleader.com/public/334.cfm >
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Recalls, Part II: If You Must Do a Recall Vote, Read This First
In November 2008, a California appellate court held invalid an
association's requirement that director recalls required a 60
percent supermajority of the association's total voting power.
Here's what you need to know about that case even if your
association isn't in located in California, along with tips on
how to properly conduct a recall vote. If you're a board member
who has gotten wind of a potential recall effort in your
community, you'll find advice for you too.
Click here to read full article:
< http://www.hoaleader.com/members/333.cfm >
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HOA and Condo Insurance: 5 Tips to Double-Check Your Association'
s Insurance Coverage
It's time for an insurance checkup so you can determine whether
your condo or homeowners association's policy provides the right
coverage and whether you can save money. Here are 5 tips on
double-checking your coverage.
Click here to read full article:
< http://www.hoaleader.com/members/332.cfm >
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How Should Your HOA Deal With Developers' Improper Promises?
Discussion Forum Follow-Up
A frequent thread on the HOAleader.com discussion forum deals
with the all-too-common problem of associations that are left
holding the bag after developers have bent the rules by making
promises that violate the association's governing documents.
Developers tell potential buyers they'll make an exception to
association rules to close a deal. Then, after the developer
turns the property over to an independent board, the new board is
left trying to explain why some owners can break the rules while
other owners have to follow those same rules. What can be done?
Click here to read full article:
< http://www.hoaleader.com/members/331.cfm >
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