Tuesday, April 6, 2010

Insulate Your Association From Unnecessary Liability

Now is not the time to make costly and avoidable mistakes. Make sure your association is following proper protocol in terms of association operations to avoid the costs and headaches associated with Division complaints, arbitrations and recalls.

Even though you may be looking to cut back on services to save money, do not cut back on essential common area maintenance as it may result in even more costly repair projects.

Periodically check the Association’s records with the Secretary of State to ensure that you have filed your annual corporate report and paid your annual fee in order to continue enjoying certain corporate protection from individual liability.

Periodically check to see who is authorized to sign your association checks and remove any individuals who are no longer on the board or who are otherwise unauthorized to be signatories. Along those lines, make sure that all persons who control or disburse association funds are properly bonded in an amount that is equal to or greater than the maximum funds that will be in the custody of the association or its management company at any given time.

Make sure your association’s official books and records are properly organized. Organization is key to avoiding additional stress in already stressful times.


  1. Our HOA is unable to keep up with routine maintenance and has apparently abandoned a roof cleaning & sealing project leaving 90% of the project undone. Do you have a solution or suggestion? I would really like to get my roof sealed [we also have gallons and gallons of sealant that was purchased a year ago]

    Thanks for the assistance

  2. Has your HOA abandoned the project because there is no money to complete it, no contractor to complete it, the board has changed composition or something else?

    One of a board's main duties is to maintain, repair and replace the common areas of the community. If your current board does not have a feasible reason for failing to proceed with this maintenance, my suggestion would be to petition to put this topic on the next board meeting agenda (you will need 20% of the owners to so petition) and then urge your neighbors to show up and discuss the need for this project to continue with the board. As a last resort, the community can always vote out unresponsive board members and vote in a new board.