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As a community association manager, you are responsible for overseeing and managing the operations of an association

As a community association manager, you are responsible for overseeing and managing the operations of an association

  • Posted: Apr 25, 2023
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WHY WE CAN’T REVIEW LEGAL DOCUMENTS

By Rafael Aquino  ( see below the article )

As a community association manager, you are responsible for overseeing and managing the operations of an association. Board members rely heavily on their expertise and knowledge to ensure the smooth functioning of the association. However, there are times when board members may ask a CAM to assist them in tasks outside their job responsibilities.

One such task is reviewing legal documents for the association. While it may seem like a simple task, it is not something that community association managers are permitted to do. This is because reviewing legal documents requires legal expertise and knowledge, which only a licensed attorney can provide.

Certain ethical and legal obligations bind community association managers. We are not licensed to provide legal advice or services, and doing so could put our license and reputation at risk. It is essential to understand that giving legal advice or services without a license is illegal and could lead to severe consequences.

If a board member asks you to review legal documents, you must inform them that you are not permitted to do so. Instead, it would be best if you recommended that they consult with a licensed attorney specializing in community association law. This will protect your license and reputation and ensure that the association receives the best possible legal advice.

It is also important to note that if a community association manager recommends a particular provider for legal services, it is for a reason. When recommending a provider, they do so based on their knowledge and experience in the industry.

To put it in perspective, it would be like asking a dentist to perform brain surgery. While both are in the medical field, they require vastly different skill sets and knowledge. Just like a dentist would recommend a neurosurgeon for brain surgery, a community association manager would recommend a licensed attorney for legal services.

In conclusion, as community association managers, we must understand and uphold our ethical and legal obligations. Reviewing legal documents is not within the scope of our job responsibilities, and it is important to recommend a licensed attorney for such tasks. By doing so, we are protecting our license and reputation and ensuring that the association receives the best possible legal advice.

For more information about Rafael P. Aquino and Affinity Management Services

please visit www.ManagedByAffinity.com or call 1-800-977-6279

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PENNY WISE POUND FOOLISH By Eric Glazer, Esq.

PENNY WISE POUND FOOLISH By Eric Glazer, Esq.

  • Posted: Apr 17, 2023
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PENNY WISE POUND FOOLISH

By Eric Glazer, Esq.

In light of the new laws requiring mandatory inspections, mandatory repairs and mandatory reserve studies, some associations are looking to cut back and save money. 

That’s not a bad idea; unless you’re cutting back on your legal counsel reviewing all of the contracts provided to you by those engineers, architects or general contractors who perform any of these inspections or repairs.

I’m starting to see more of this and it’s an alarming trend.  It boggles my mind that an association would spend millions of dollars on a contract for repair of their property, but won’t spend a few hours on their attorney reviewing that contract first.  No question in my mind that the failure of the Board to have that contract reviewed by counsel before signing, is a breach of their fiduciary duty to the unit owners they represent.

I teach a class called “Before You Sign That Contract.”  It talks about so many ways in which the association can suffer financial loss by having the wrong clauses in the contract or by failing to insert certain clauses into the contract.  Once sentence can potentially cost the association hundreds of thousands of dollars.  And you chose to cheap out on a few hours of attorney’s time?  Really?

Even smaller contracts need to be reviewed.  If the association does not have the proper remedies in the contract for the contractor’s breach, the situation can turn into a long lasting nightmare where the association will never be made whole.  And…….the association will have to spend its own attorney’s fees now to correct the problem with no chance of recovering them later on.

We are about to enter into a historic time here in Florida where these types of contracts will be flying off the shelves. 

They will be everywhere, in every condominium.  Be careful.  If you didn’t hear me the first time, I said BE CAREFUL AND DON’T BE CHEAP.  GET LEGAL HELP BEFORE SIGNING.

DON’T COME TO ME AFTER YOU SIGNED A CONTRACT AND SAY “HEY ERIC…OUR ASSOCIATION SIGNED THIS MULTI MILLION DOLLAR CONTRACT.  CAN YOU NOW GET US OUT OF IT?

THE ANSWER IS OFTEN TIMES……NO I CANNOT.  YOU SHOULD HAVE ASKED ME TO LOOK AT IT BEFORE SIGNING IT.

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A FEW BIG CHANGES IN THE LAW By Eric Glazer, Esq.

A FEW BIG CHANGES IN THE LAW By Eric Glazer, Esq.

A FEW BIG CHANGES IN THE LAW

By Eric Glazer, Esq.

Believe it or not, it’s getting harder to sue someone or to sue a business in the State of Florida.

First, it’s more risky now to sue your insurance company.  The typical case that comes to mind is the one where a condominium association sues its own insurance company for failing to pay for roof damage because the insurance company does not believe the storm caused all that damage.  Until now, there was no risk for the condominium association.  The attorney took the case on a contingency and, if the association won the case the association would be entitled to an award of attorney’s fees against the insurance company.  And, even if the association lost, the association did not have to pay attorney’s fees to the lawyers for the insurance company.  In other words, the risk of paying attorney’s fees only ran one way.  No longer.  Now the association has no right to collect attorney’s fees against their insurer even if the case is settled or won.  The association bears the risk of not having their fees paid by their carrier which should ultimately result in a smaller recovery.

Perhaps the biggest change to the law since I’m in practice went into effect last week.  The statute of limitations regarding negligence actions went from four (4) years to two (2) years.  That is a bombshell.

The law is primarily intended to go after personal injury lawyers and prevent personal injury cases from winding up in the courtroom.  From a condominium and HOA perspective the change in the law will also have major effects.  For example, all claims for damages to condominium or HOA property caused by someone else now have to be filed in two years and not four.  This could be damage caused by contractors the association hire, or unit owners who live or rent on the property.

There are some other bills of interest that may pass during the legislative session and if they do, I’ll let you know.

 

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ALL ABOUT E-MAILS By Eric Glazer, Esq.

ALL ABOUT E-MAILS By Eric Glazer, Esq.

  • Posted: Mar 08, 2023
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ALL ABOUT E-MAILS

By Eric Glazer, Esq.

 

There really is a lot to know when it comes to e-mails.  Here’s a brief outline:

Can Directors Communicate and Vote By e-mail?

Members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail.

Example:  Friday night is a board meeting.  On the agenda is whether or not to hire Joe’s Landscaping Service.  Between now and Monday the Board members can send e-mails to each other suggesting whether or not to hire Joe’s.  Even if all decide to hire Joe’s, that vote must still take place Friday night at the properly noticed Board meeting.

Are these e-mails official records of the association, accessible to the unit owners?

E-mails on the personal computers of individual directors are not official records of the condominium association. The property of an individual director does not become the property of the association because of his office on the board.  Even if directors communicate among themselves by e–mail strings or chains, about the operation of the association, the status of the electronic communication on their personal computer would not change.

Similarly, an e–mail to an individual director or to all directors as a group, addressed only to their personal computers, is not written communication to the association. This must be so because there is no obligation for a director to turn on the personal computer with any regularity, or to open and read e–mails before deleting them.  The conclusion may be different if the association owns a computer on which the management conducts business including e–mails (analogous to government public records); or if e–mails are printed up and passed around for discussion at a board meeting.

Does that Mean A Director’s E-mail can Never Be Seen By Anyone?

Just because the e-mail may not be an “official record” of the association does not mean that nobody can ever get to see it.  Trust me, if the association is involved in litigation, and I serve a subpoena on a director for their e-mails which may have relevant information, the court will require production of those e-mails.  So board members be warned, before you hit the SEND button think about whether or not you would be comfortable with a judge, jury or opposing counsel reviewing it as well.

Are the E-mail Addresses of the Unit Owner’s an Official Record obtainable by an Owner?

E-mail addresses are not accessible to the unit owners, unless the reason why the association is in possession of that e-mail address is because the unit owner signed a form consenting to receive notices by e-mail.

Have any additional questions?  Send us an e-mail.

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THE FLORIDA LEGISLATURE – AFRAID TO PASS REQUIRED EDUCATION

THE FLORIDA LEGISLATURE – AFRAID TO PASS REQUIRED EDUCATION

THE FLORIDA LEGISLATURE – AFRAID TO PASS REQUIRED EDUCATION

DOES THE FLORIDA LEGISLATURE WANT YOU TO REMAIN DUMB?

By Eric Glazer, Esq.

For those of you who are intelligent and decided to come to a Board Certification class in the last few months and learn all about the new safety and reserve laws, I applaud you.  It was my honor meeting you and teaching you all over the state.

I love that look in your eyes and the groan that comes over the crowd when I tell you that you do not need to be here today.  You did not have to get certified by taking what I believe is both a board certification and a life safety class.  The Florida Legislature still allows Board members to get certified by signing a ridiculous form that says you have read your governing documents and you promise to enforce them.

Are the new safety and reserve laws found in your governing documents?  Of course not.  You have to be taught them to know what you are now required to do in order that another Champlain Towers disaster never happens again.  You don’t learn these laws by staying home in your pajamas, printing a form off the computer and signing it.  When the members of your Board can get certified by signing that self-serving form, lives are at risk.

It’s ironic that they placed language in the new laws requiring the directors to follow them or face breach of fiduciary duty charges.  So…..according to The Florida Legislature, you must apply these new laws in your condominium, you just don’t have to learn them and know what is actually required of you.

Every legislator I have ever spoken to about a mandatory educational course in order to get Board certified is in favor of it.  Yet, it remains a mystery why in the past it has been removed from the statute.  The classes are free and are even accessible via ZOOM.  This year, there are several condominium bills floating around at the moment.  Not a single one has any mention of mandatory education for Board members.

Back to the title “Does The Florida Legislature Want You To Remain Dumb?”  How else would you explain it?

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JUST WALK AWAY – By Eric Glazer, Esq.

JUST WALK AWAY – By Eric Glazer, Esq.

JUST WALK AWAY

By Eric Glazer, Esq.

I was recently watching an interview of a black belt in karate.  In addition he was built like The Hulk.  He started to say what he does when someone curses him out and even challenges him to a fight.  I was certainly expecting him to describe how he turns others into rubble.  On the contrary, he said that whenever he finds himself in that position, instead of fighting back, he simply walks away.  To say I was originally surprised is an understatement.  I mean this guy could pulverize any opponent.  Instead, he chooses to just walk away.

He spelled out why.  If he beats someone up he faces both criminal and civil charges.  And for what?  Because some dope said a few nasty words about him?  Much better to just walk away from any situation that allows for it.  Wow, I was impressed by this guy’s brain, not just his muscle.

It got me to thinking about my career in condominium and HOA law.  How much time in my life did I spend hearing board members and unit owners verbally go at each other.  How much time in my life did I spend hearing unit or homeowners argue with other unit or homeowners?  It’s ridiculous.

In none of these arguments was anything accomplished whatsoever.  They were all a waste of time for those arguing and everyone who unfortunately had to listen to the nonsense.  I’ve seen physical fights break out and even walkers and canes fly through the air.  And for what?  What was accomplished?  Nothing.

So, board members, unit owners, home owners and even managers, I’m talking to you.  Next time someone is looking for a fight, do what the karate guy does, walk away.  It will probably drive the other person crazy.

 

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RECOGNITION OF PRESIDENTS? By Jan Bergemann on Condo and HOA Blog

RECOGNITION OF PRESIDENTS? By Jan Bergemann on Condo and HOA Blog

  • Posted: Feb 24, 2023
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RECOGNITION OF PRESIDENTS?

By Jan Bergemann on Condo HOA Blog




I know that there are many good presidents who are working hard for the good of the community, keep open books and openly communicate with the members of the association.

But then there are lots of presidents, drunk with power and full of themselves. You wouldn’t believe the many ugly stories I’m hearing daily about presidents behaving like Joseph Stalin, Adolf Hitler or Fidel Castro. With the help of greedy attorneys and community association managers they create dictatorships that make living in community associations a living nightmare. They are even willing to ignore arbitration and court rulings and continue their evil doings even after being officially removed by elections or recalls. They are even willing to waste the association’s money on ridiculous appeals court filings.




The real reason why this can even happen in a so-called “civilized” country like the USA: The unwillingness of our government to enforce the many laws legislators create every year.

Many of these laws turn out to be just a waste of paper because too many of the so-called “specialized” community association attorneys are willing to help these dictatorial presidents to circumvent these laws, telling owners, who stand up at meetings to challenge actions of the board that violate the laws, to “sit down and shut up since they don’t have the money to sue the board anyway”!

Living in a community association isn’t something you can just enjoy by not participating, willing to ignore to happenings in the neighborhood until it’s too late. Apathy of owners allows these dictatorships to be created in the first place. Don’t let apathy destroy your community.

REMEMBER: EVEN THE BEST COMMUNITY IS ONLY ONE ELECTION AWAY FROM DICTATORSHIP.

Jan Bergemann

Jan Bergemann is president of Cyber Citizens For Justice, Florida ‘s largest state-wide property owners’ advocacy group. CCFJ works on legislation to help owners living in community  associations. He moved to Florida in 1995 – hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

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WHEN THE GOING GETS TOUGH By Eric Glazer, Esq.

WHEN THE GOING GETS TOUGH By Eric Glazer, Esq.

  • Posted: Dec 08, 2022
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WHEN THE GOING GETS TOUGH

By Eric Glazer, Esq.

It has always been difficult to get volunteers to be on the Board of Directors.  Even when times are good and the building has made repairs and has some money in the bank, you can never count on owners to volunteer their time for a position where on their best day they will be second guessed and criticized.  It’s always touch and go as to whether an election will even be required in most condominiums because there won’t be enough volunteers.  Maybe it’s because the job doesn’t pay too much.

Well, if you thought it was hard to get volunteers for the Board before, you ain’t seen nothing yet.  Members of Boards starting in 2025, and perhaps some Boards getting a jump on the new laws know that they certainly won’t be winning any popularity contests by serving on the board, especially when they prepare the association’s annual budget.  These new Board members will be the ones who have to tell the members of the community that their monthly assessments are about to skyrocket due to:

  1. Mandatory Phase One Inspections;
  2. Probable Phase Two Inspections;
  3. Massive required repairs in order to pass the 25,  30, 40 or 50 year inspections;
  4. The full funding of a reserve account based upon a structural integrity reserve study;
  5. The fact that reserves can no longer be waived.
  6. Massive Increases in the association’s insurance.

These board members will need to sit behind barbed wire and Police “Do Not Cross” tape during the budget meeting.  They will probably want to be escorted to their units after the meeting by security.  Bottom line is they are going to be facing hostile crowds.

Let’s say they make it back to their unit and still wish to remain on the Board.  Now the fun begins.  These board members will have to hire the architects, hire the engineers, hire the contractors, make sure the repairs get made and pay all of the association’s massive bills. They may also have to negotiate a loan from a local bank so that everyone doesn’t have to come out of pocket for all the repairs.  Of course they will also still have the usual responsibilities of Board members such as attending meetings.

So who in the world is going to want to serve on the Board in 2025 when all of these new laws go into effect?  Why would anyone stick their neck out so far?  Well, if you were always a board member, you may not be scared of the responsibilities to come.  On the other hand, if you were shy of becoming a board member before, I don’t doubt that you’re going to remain the same and stay away.  It’s going to get tough ladies and gentlemen.  But will the tough get going and make the association’s Board the best it can be?

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SO WHERE WILL PRICES GO? By Eric Glazer, Esq.

SO WHERE WILL PRICES GO? By Eric Glazer, Esq.

  • Posted: Nov 17, 2022
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SO WHERE WILL PRICES GO?

By Eric Glazer, Esq.

I think last night’s 60 Minutes episode made it clear that for some, living in their condominium unit may simply become unaffordable.  The question is……which condos will suffer the most and which other forms of housing are most likely to retain their values and even go up.

Everyone is freaking out that all condominium living will soon become insanely unaffordable but that simply isn’t true.  Remember, these new inspection laws only kick in after 25 years if your condo is on the beach or within 3 miles of the coast.  They don’t kick in for 30 years for all other condos.  So, if your condo is new, these new inspections may not apply to you for decades.  Relax.

What else do we know?  Full funding of reserves start in 2025 and they can’t be waived.  Does that spell doom and gloom for everyone?  Not necessarily.  If your condominium has always been doing the right thing and has been fully funding reserves, these new laws requiring the full funding of reserves may not have a financial effect on you at all.   On the contrary, if you have been living in a condominium that has been waiving reserves for years, or even decades, you are in trouble.  You have a lot of catching up to do.  But what did you expect?  You were never putting away money for future repairs?  Did you think your building would never need repairs?  If it did need repairs, did you think these repairs would magically be paid?

Remember, these mandatory inspections, mandatory repairs and mandatory reserves only apply to condominiums of 3 stories or more.  So obviously, if your condominium is under three stories, you won’t be subject to mandatory inspections or mandatory reserves.  Something tells me, your home will be in high demand.

Of course, if you live in an HOA, the new inspection and reserve laws won’t apply to you either.  No doubt in my mind, condo dwellers will soon be looking to switch to the HOA way of life.

If you live in one of those condos above 3 stories that is 30 years of age or older and never reserved a dollar, it’s going to be hard to sell your unit. Buyers are more educated now and realize they would be buying into a financial nightmare.  If you want to sell, your price will definitely have to factor in, what the new buyer is about to pay for those inspections and repairs.

On the contrary, people who own condos under 3 stories or who live in HOAs will be in the driver’s seat as none of these costs will be passed on to their potential buyers.

I’m no realtor……..but this is how I see it.

 

DEVELOPERS ARE ON THE PROWL – By Eric Glazer, Esq.

DEVELOPERS ARE ON THE PROWL – By Eric Glazer, Esq.

  • Posted: Nov 09, 2022
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DEVELOPERS ARE ON THE PROWL

By Eric Glazer, Esq.

I’m already hearing stories of developers making low ball offers to owners in high rise condominium buildings, offering to buy units at bargain prices. Here’s why…..  Developers knows that in building of 25 years or more on the coast or 30 years or more inland, owners are facing massive upcoming expenses.

These include but are not limited to:

  1. Mandatory fire sprinklers or an engineered life safety system;
  2. A mandatory Phase One Inspection;
  3. A likely Phase Two Inspection which will subsequently result in major repairs being required to the condominium property;
  4. A Structural Integrity Reserve Study and the full funding of reserves.

 It’s going to get mighty expensive to remain living in some condominiums and developers know that many owners simply won’t be able to afford it.  Their strategy is to offer you some money for your unit instead of you having to come out of your pocket tens of thousands of dollars or more.

Developers may rely on simply making an agreement to buy everyone’s unit at the same time and if even one owner decides not to sell, the deal is off.

Developers may also have a strategy where they buy enough units to “terminate” the condominium form of ownership.  Under the current statute the developer may wish to accumulate only 80% of all units.  If so, the developer can then file a plan of “termination.”

the plan must be approved by at least 80 percent of the total voting interests of the condominium. However, if 5 percent or more of the total voting interests of the condominium have rejected the plan of termination by negative vote or by providing written objections, the plan of termination may not proceed.

 

If you read the foregoing statute, clearly developers would want to purchase just in excess of 95% of all units so that nobody can stop the plan of termination.  However, some of you may have language in your governing documents that would require a vote of 100% of the owners in order to terminate the condominium.  The question of whether the magic number is 80%, 95% 100% or some other number depends upon whether you have “Kaufman” language or “as amended from time to time” language in your governing documents.  Believe me, it gets complicated.

The bottom line is that many of you will soon be approached by developers looking for a steal.  When this happens, rather than have infighting among those that live and/or own in the condominium, I urge you to seek the advice of counsel on this very complicated topic.

No doubt older buildings will be toppled by developers who will put new ones in their place.  It may be very unlikely that even though you lived there for decades, you won’t be able to afford the prices in the new condominium.  Ladies and gentlemen, gentrification is coming to a neighborhood near you.

Every Sunday watch and listen…Ask Questions get Answers!

WHY THE DIFFERENCES? By Eric Glazer, Esq.

WHY THE DIFFERENCES? By Eric Glazer, Esq.

  • Posted: Nov 03, 2022
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WHY THE DIFFERENCES?

By Eric Glazer, Esq.

At a time when it would make sense for the condo and HOA laws to become easier to learn, they are becoming harder.  Much has to do with why in the world are there such differences between the condo and HOA statutes?  It’s actually ridiculous.  For example:

  1. In order to get access to the official records, why does the condo statute allow access if the owner asks for access in writing while the HOA statute requires the owner to request access by certified mail return receipt requested?
  2. Why does the condo statute require condos with 150 units or more to have a website, while an HOA with 150 units or more does not require a website?
  3. Why does the HOA statute allow voting by proxy but the condo statute doesn’t and requires a very strict way of performing the election?
  4. Why do HOA documents expire after thirty years, but the condo declaration never expires?
  5. Why is competitive bidding required in a condo if the amount at issue is 5% of the budget but competitive bidding is required in an HOA if the amount at issue is 5% of the budget?
  6. Why in an HOA, if the owners amend the declaration to prohibit rental terms of less than six months or 3 times in a calendar year, that amendment applies to everyone, even those who did not vote in favor of the amendment ———- however that same amendment would not apply to those who specifically did not vote in favor of the amendment in a condo?
  7. Why does the condo statute require a 75% vote of the owners in order to make a material alteration, yet the HOA statute does not mention material alterations?
  8. Why as of January 1st, 2025 are condominiums required to reserve funds for all portions of the common elements but HOAs are not?

There are more, but you get the point.  There are no reasons of which I’m aware as to why these statutes are different for condos and HOAs, yet they continue to exist.  At a time when it’s confusing enough to learn the laws, The Florida Legislature should amend the statutes so that the laws are the same and fair across the Board, regardless of whether you live in a condo or HOA.

 

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