One of the benefits of being general counsel for many community associations—both HOAs and condos—is that we can recognize frequently misunderstood, confusing and difficult issues, and help our clients avoid them. One misunderstanding that arises quite frequently is the failure to properly distinguish between directors and officers. With election season approaching for many of you, we thought a short discussion about a few director v. officer distinctions might be helpful.* read more

Since I worked as in-house counsel for a debt collection agency prior to joining Barker Martin, I find I am uniquely situated to provide input on whether to turn a particular account over to a collections attorney or to collections agency to recover the delinquent amounts owed to an Association. read more

Associations facing repair projects are often given the option of entering into a guaranteed maximum contract or G-Max contract with their contractor. These contracts are common for repair projects, whether the repairs are required because of defects and damage or because the component is at the end of its useful life. The implication that a guaranteed maximum contract caps the maximum amount your association will have to pay sounds great and can be a useful method of controlling costs. But, you should be aware that the guarantee is not absolute. read more

Last week, we discussed how delinquencies affect owners and the lots or units they own. This week, we discuss the effect of bankruptcy, sales and foreclosures on the personal obligation or liens. Generally speaking, an owner's bankruptcy affects the owner's personal obligation to pay the amounts becoming due on or before the bankruptcy filing date, but does not impact the Association's lien against the unit or lot, unless additional steps are taken in the bankruptcy case. If the owner wants to try to remove the lien as part of the bankruptcy case, the Association is entitled to notice of the motion and can object. If an Association receives a bankruptcy motion, legal counsel should be contacted immediately to discuss the Association's options. read more

Under state law in Washington and Oregon, Condominium and Homeowner Associations have the authority to adopt and amend budgets, and levy and collect assessments from owners for the common expenses. But it can be confusing what happens when an owner does not pay the assessment. This two-part article discusses the personal obligation of the owner to pay the assessment and the lien that is created when the assessment is not paid. Next week will discuss the effects of sales, foreclosures and bankruptcy on both the personal obligation and the lien. read more