Who makes decisions, the Board or the Manager?

In many situations, a Board of Directors of an Condominium or Homeowners Association may have very little communication with their Association’s attorney. This can help to make communication more efficient, in that instead of having 2-3 different perspectives going to the attorney as to what to do in a certain situation (which can result in unnecessary attorney’s fees), communication with a property manager can help to streamline needs and communication with the attorney, resulting in lower legal costs.

What needs to be considered, though, is who the Attorney works for and who should ultimately make the decisions that the Attorney then puts into action. The Board is the entity who should be making the decisions as to what the Association wants and needs the Attorney to do. They may delegate to the property manager the oversight of such tasks, but the cannot delegate the decision making process to a property manager.

For example, the Board can put a policy in place where all delinquent owners over 60 days delinquent should begin the collection process and be turned over to their attorney, and the property manager can follow through with overseeing that the correct accounts go the attorney. As soon as an account is over 60 days, the property manager, without further interaction from the Board, can send any accounts that fit the 60 day delinquent criteria. What the property manager cannot do, is to establish the 60 day criteria. The property manager may consult with the Board to help them establish the rule, but in the end, the Board must be the one that makes and approves the rule. This goes for all items, from when to file a lawsuit to landscape rules and regulations.

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