Why a legal retainer should be in condo assessment budgets
From owed fees to rogue members, here's why attorney fees are necessary for COAs and HOAs
When I was first approached to be a member of a condo board, I didn’t know all of the drama unfolding before I moved in. I had no idea that one owner owed more than $8,000 (according to his ledger) and there’d been a huge blowup in the property manager’s office with a receptionist. I didn’t know about building violations or slum landlords who were buying units and then ignoring their tenants’ requests. It was a lot to handle for a volunteer. For honest property managers (in Chicago, they’re referred to as Community Association Managers), I see why this group is needed for condo associations (COAs) and homeowners associations (HOAs). I also fully understand why the ones worth their weight charge their monthly rates. It can be — a lot.
From lived experience, one fee that was not in my condo association’s assessments that later made sense to add was a legal retainer. Condo board members are not legal experts. As much as they may try to follow the condo bylaws and state laws in regard to condominiums (in Chicago, this is called the Condo Unit Owner's Rights and Responsibilities Handbook), there are going to be times when condo board members fall short and even property managers may not be totally clear on what to do.
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But how does a condo association know who to hire? Every attorney is not always the best choice. Some attorneys may claim to be experts on condo associations and have their own legal baggage. Other attorneys may charge sky-high rates simply for a 15-minute phone call, and then the condo association receives the exorbitant bill later. But there is a middle ground. There are condominium association attorneys who do look out for owners* and for associations, who are honest, and who actually prefer to make day-to-day duties peaceful instead of profiting from nonstop fighting. As is the case with other contractors, sometimes you may just have to work on a small job with an attorney to decide whether this person (or law firm) meshes with your COA or HOA.
Here are five reasons why condo associations should consider having a regular legal retainer in their annual budget.