Ask The HOA Expert - December 15, 2004
by Richard Thompson
Question: A homeowner is demanding to see the HOA books and records. Our policy has always been homeowner may examine the books and records during normal business hours. He is demanding copies of everything. What should we do? Answer: Most HOA records should be made available for examination as you describe. Collection records are private and should not be released to the members. Same goes for current litigation records, contracts under negotiation and information that is attorney/client privileged. Copies should carry a reasonable charge like 10¢ each to cover material and labor costs. This usually limits the "I want copies of everything demand." Question: We have an ongoing problem with units that sell and close without clearing past due balances, violations or liens. How can we make sure the homeowner association is contacted by the closing agent? Answer: This is a common problem. Most closing agents usually know which properties belong in HOAs and are supposed to contact the HOA for this information. But there is no reliable contact information or it gets overlooked. If the HOA has a properly filed lien, the title insurance company will pick it up and require payment prior to closing. If there is no lien, there is no reliable way to ensure payment other than the seller's honesty. Of course, that doesn't mean the new owner is off the hook for dues owed by the former owner. Title is taken subject to all rights and obligations and if the seller leaves a bill owing money, the HOA can demand payment from the new owner. Question: One of our units is rented and managed by a rental management company. The renters have a barking dog, items stored outside the house, a son who blasts music, etc. What can the HOA do about this situation? Answer: The HOA only has direct legal authority over the property owner and the property owner is responsible for the renter's actions. Start notifying and fining the owner and corrective action usually soon follows. Question: I live in a condominium with three buildings and the one I live in has an elevator that needs substantial repairs. The Board plans to assess all repair costs to our building. Can the Board charge only our building or must all owners share the cost? Answer: Unless the governing documents specifically allocate elevator expenses and repairs to certain units, the costs are spread among all unit owners and that can't be changed unless 100 percent of all owners agree to it. Question: Our Board has allowed unit owners to enclose patios, replace concrete sidewalks with pavers, add bay windows, greenhouse rooms, skylights and roofs to cover new rooms. The rationale was that such improvements increase the value of all units. Is that correct? Answer: What you describe constitutes illegal expansion into the common area. The Board has no authority to expand owner use of common area. Any redefinition of common area (even if it is limited to the use of the unit owner) must be approved by an appropriate majority of owners which may be 100 percent. However, what is done is done. The Board should deny further such encroachments into common area. Whenever the Board grants a legal modification, like carpeting an existing patio, the approval should be done in writing and include the condition that all maintenance and repairs are the owner's responsibility as well as any damage caused to common area resulting from those modifications. For more Ask the HOA Expert, see www.Regenesis.net. | 
