You Don't Speak "Legalese"?

Homeowner associations (HOAs) are responsible for maintaining a community's common areas, enforcing community rules, and handling finances. With so many responsibilities, it's easy for HOAs to fall out of compliance with state and federal laws. This is where an HOA management company like Liberty Allied Management can be a valuable asset. In this blog post, we will discuss the importance of legal compliance for HOAs and how companies like Liberty Allied can help prevent issues and tragedies from arising due to noncompliance.

Legal compliance is critical for HOAs, as failure to comply with state and federal laws can result in costly fines, legal disputes, and even the dissolution of the HOA. For example, in Texas, HOAs are required to provide certain disclosures to homeowners, such as annual financial statements and meeting minutes. Failure to provide these disclosures can result in fines of up to $500 per violation. In addition, the Texas Property Code sets strict guidelines for the conduct of HOA meetings and elections. Failure to follow these guidelines can result in legal challenges to the validity of the election or meeting.

To help prevent issues and tragedies from arising due to noncompliance issues, HOA management companies like Liberty Allied can assist HOAs in understanding and complying with state and federal laws. A good tip for HOAs to help with legal compliance is to ensure that all records, including financial records and meeting minutes, are properly maintained and made available to homeowners.

FUN FACT: According to a survey conducted by the Community Associations Institute, the majority of legal disputes involving HOAs are related to records access and document production.

Liberty Allied has extensive knowledge and experience in helping HOAs maintain legal compliance. Their team can assist HOAs in drafting and enforcing bylaws, policies, and procedures that comply with state and federal laws. They can also provide education and training to board members and homeowners on legal compliance issues.

An example of how Liberty Allied can help prevent issues and tragedies from arising due to noncompliance is by ensuring that the HOA has proper insurance coverage. In Texas, HOAs are required to carry certain types of insurance, such as liability insurance and property insurance. Failure to carry adequate insurance coverage can leave the HOA and homeowners vulnerable to costly lawsuits and property damage. Liberty Allied can help HOAs understand their insurance needs and ensure that they have the proper coverage in place.