Virginia Community Association Law Blog : Virginia Condo & HOA Lawyers & Attorneys in Williamsburg & York & Newport News & Hampton VA / Property Management Issues

On Thursday, February 16, 2012, LeClairRyan employment law attorney and Community Association Team member Brian Muse will present a one-hour webinar on the Fair Credit Report Act.

This webinar will provide practical advice to employers on what they need to know to conduct background checks and employee investigations without running afoul of the FCRA. It will address the types of notice that employers must provide prior to background checks and the required procedures for compliance. It will also offer practical advice to employers to avoid legal trouble in this constantly evolving area of the law.

For more information, and to register for this event, click here.

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May your community association legally conduct meetings via webcast? Should it conduct meetings in that manner? What are some of the legal risks related to using emerging technology in the context of meetings? HOAleader recently interviewed LeClairRyan's Liz White on this topic. Check out the full article here.

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Will Sleeth and Liz White were recently quoted in a Virginia Lawyers Weekly magazine article reporting on the challenges that associations and their attorneys face when attempting to collect unpaid assessments. The article (subscription required) discussed the importance of associations and their attorneys strictly complying with the requirements of the federal Fair Debt Collection Practices Act. The article illustrates an important lesson that all associations should keep in mind: when an association attempts to collect on a debt, it should consult with legal counsel to ensure compliance with all applicable laws.

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 A reader recently asked us to comment on members' rights to inspect their property owners’ association’s books and records, such as financial information and meeting minutes, pursuant to the Property Owners’ Association Act.

A member’s right to inspect records is not only governed by the provisions of the Property Owners’ Association Act, but also by the provisions contained within the Virginia Nonstock Corporation Act. The provisions of the two acts must be read in conjunction with each other, and therefore the interested member should review not only § 55-510 of the Property Owners’ Association Act in order to understand his rights, but also §§ 13.1-932 – 934 of the Virginia Nonstock Corporation Act as well.

This blog post is limited to a discussion of the provisions contained within the Property Owners’ Association Act, and at some future time we will likely make a post regarding the inspection provisions contained in the Virginia Nonstock Corporation Act.

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Editor's note: Liz White was recently quoted in the following article on HOAleader.com, concerning owners' ability to view draft meeting minutes.

A reader on the HOAleader.com discussion board asks: "A member requested a copy of the board meeting minutes prior to the approval. We conduct open board meetings, and [agendas] are posted in advance. Does a member have the right to these unapproved minutes?" Fellow HOAleader.com readers were split in their responses to our reader's quandary. Here, experts tell us how they'd approach the issue. 

The Simple Answer

 "That's a real sticky wicket," says Elizabeth White, a shareholder and head of the community associations practice at the law firm of LeClairRyan in Williamsburg, Va. White doesn't just mean the distribution of draft meeting minutes. Our reader's question brings together several difficult issues, including who's entitled to see minutes when and what should be in meeting minutes.

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We received the following question relating to disclosure packets and financial updates: Va. Code § 55-509.9 provides that settlement agents may request escrow instructions from the disclosure packet preparer, who would be the association manager in the case of a professionally managed association. No fee may be charged for escrow instructions, whereas an association manager may charge a $50 fee for a financial update. Settlement agents and other parties involved in the sale of a property (e.g. real estate agents) regularly request written confirmation of outstanding assessments, special assessments, HOA insurance coverage, insurance agent contact information, etc. Since this information is in the disclosure packet already provided, does this information qualify as a “financial update” for which a fee may be charged? Is there a definition of what is included in a settlement agent request that is not subject to a fee and one that is?

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Thank you to all those who participated in our March 31^st webinar on POA Disclosure Packets. To follow up, the following are answers to those questions you submitted that were left unanswered at the end of the program. Thank you for your insightful questions!

Q. Is HB 702, the new law regarding time of payment for disclosure packets (effective July 1, 2010), applicable to professionally managed associations as well as self-managed associations? 

A. The new law will apply only to self-managed associations. For the time being, professionally-managed associations should continue to ensure that fees for disclosure packets are collected at settlement.

Q. Must a copy of an insurance document or certificate for the Association be included in the disclosure packet, or only a notation of the coverage amount?

A. The disclosure packet must include a "statement setting forth what insurance coverage is provided for all lot owners by the association, including the fidelity bond maintained by the association, and what additional insurance would normally be secured by each individual lot owner." A document from the insurance company is not required.

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This Wednesday, March 31st, LeClairRyan's Community Association Industry Team will be hosting a free webinar entitled "What You Need to Know About Property Owner Association Disclosure Packets."

On Wednesday from noon to 1 P.M. EST, attorneys Lori Schweller and Liz White will discuss the Virginia Property Owners' Association Act's requirements, including when disclosure packets are required, who is responsible for requesting and providing them, what they should include, the costs of producing them, and the ramifications of non-compliance.

If you haven't already registered for this free event, click here to register now.

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