Association (both property owners’ association and condominium association) meetings are typically held at the community clubhouse or other local building.  However, with the increasing availability and utility of technology, virtual meetings are becoming more commonplace.

Virginia’s General Assembly (Virginia’s state legislature) recently passed legislation, House Bill 1205 (the “Amendment”), amending the Virginia Nonstock Corporation Act, that may increase the use of virtual meetings for property owners’ associations in the Commonwealth.  Note: property owners’ associations are typically non-stock corporations, subjecting them to the Virginia Nonstock Corporation Act.  Continue Reading Virtual HOA Meetings?: Virginia’s General Assembly Makes It Easier For Property Owners’ Associations To Hold Entirely Electronic Meetings

In a previous post, we discussed the advantages and disadvantages of a memorandum of lien foreclosure.

In this post, we will focus on the process of enforcing an Association’s judgment lien.

When an Association sues a delinquent owner, the Association seeks a monetary damages award (plus attorney’s fees and costs usually) from a court.  If the Association wins, the court awards the Association a monetary judgment.

What’s a Judgment? 

A judgment is merely a piece of paper that states that the delinquent owner owes the Association the delinquent amounts.  A judgment is not a court order to pay.  With the exception of child support or tax debts, delinquent debtors are generally not court-ordered to pay debts. Continue Reading Stepping Up The Pressure: Using a Judgment Creditor’s Suit to Enforce an Association’s Lien

In our previous post, we considered one method a Community Association may use to preserve and collect its lien for unpaid assessments: the memorandum of lien.

In this post, we will focus on the process of foreclosing on a Community Association’s memorandum of lien.  As we discussed last time, once the memorandum of lien is recorded, it acts as an encumbrance on the property’s title.  Once recorded, the memorandum of lien will be valid for a period of 36 months.

So what may a Community Association do with a memorandum of lien to collect delinquent assessments?  As we discussed in the previous post, simply recording the memorandum of lien does not necessarily mean that the Community Association will be paid.  However, the General Assembly has provided the Community Association with a powerful statutory tool to enforce its memorandum of lien: the nonjudicial foreclosure.

Continue Reading Persistence Can Lead to Dollars Part II: Foreclosing on a Memorandum of Lien

One of the most common questions we receive from Community Association clients is how do we preserve our lien for and recover delinquent assessments?

The frustrating reality is that some owners in Community Associations fail to pay their assessments in a timely manner.  These delinquencies can create serious financial issues within the community.  There are a few ways for Community Associations to pursue delinquent assessments.  In part one of this series on collection remedies, we will discuss one method of collection, or rather, preservation, of a Community Association’s lien: the memorandum of lien.

What is a memorandum of lien?

A memorandum of lien is a document that is recorded in the land records of the Circuit Court Clerk’s Office in the city or county where the real property is located.  The memorandum of lien essentially states that the Community Association has a lien encumbering the property for delinquent assessments.  The operative statutes require the Community Association to include certain information on the memorandum of lien, including, but not limited to, the name of the development, a description of the lot, the delinquent amounts and their due dates, and the names of the owners.  Moreover, the Community Association must provide written notice (sent via certified mail at least ten days prior to the filing of the memorandum of lien) to the delinquent owner that a memorandum of lien will be filed if the amounts remain delinquent. Continue Reading Persistence Can Lead to Dollars: Preserving the Community Association’s Lien for Delinquent Assessments – Part One

As of July 1, 2015, the Virginia Condominium Act provides that no condominium association may impose an assessment or charge against a unit owner unless such charge or assessment (a) is expressly authorized by the Condominium Act (see particularly Va. Code Sec. 55-79.83) and/or by the condominium instruments for the community, (b) represents a fee for service provided, or (c) is a fee for a resale certificate, as provided for in the Condominium Act. Va. Code Section 55-79.42:1.

The Common Interest Community Board has the authority to assess a monetary penalty and/or issue a cease and desist order against an association or common interest community manager who violates this Code section pursuant to its powers under Title 54.1 (“Common Interest Communities”), Sections 54.1-2349, -2351, and -2352. (The Property Owners’ Association Act already included a similar provision regarding assessments and charges in Section 55-509.3, which was amended in 2015 to add the CICB’s enforcement powers.)

Continue Reading Association Charges : Be Aware of Legal Restrictions on Assessments and Charges

Since our last postings on the subject of disclosure packets, the General Assembly has adopted several minor Code changes to clarify existing provisions:

Delivery by Overnight Carrier 
The Code section providing for cancellation of the purchase agreement within a certain time period after receipt of the resale certificate / disclosure packet previously failed to mention when the purchaser could cancel if the resale certificate / disclosure packet were delivered by overnight delivery service. For both property owners’ associations (“POAs”) and condominium associations, whether self-managed or professionally managed, if the resale certificate / disclosure packet is delivered by commercial overnight delivery service, the purchaser may cancel the contract within three days after receiving it.

The seller or the seller’s authorized agent may choose whether a resale certificate / disclosure packet will be delivered in hard copy or electronically. Such request and instructions must be stated in writing.

Continue Reading Disclosure Packets and Resale Certificates: Statutory Updates

Will SleethJoin me, Thursday, Jan. 22 (11:00 am – 12:30 pm ET), for this practical collections guide reviewing key issues and processes involved in pursuing outstanding debts in common interest communities. The real estate market troubles have left many condominium and HOAs in turmoil. With fewer members to carry the financial load, every penny counts.  Explore the debtor protections that exist in specific situations, and make certain the collection efforts are lawful and effective.

Topics include: A walk-through of the essential steps of collection procedures; Making certain governing documents support the claim; Finding new ways of legally pursuing the debt owed to the community; and practical tips for staying in compliance with FDCPA.

Who Should Attend: Attorneys, Common-interest community presidents and vice-presidents, Accountants, and Real estate professionals.

Registration fee: $199. CLE credit available. 
Additional details and registration can be found at: www.nbi-sems.com

This weekend, four members of LeClairRyan’s Community Association Industry Team are attending the Virginia Leadership Retreat (VLR) at the Homestead in Hot Springs, VA. The team has attended the annual conference each year since its inception six years ago, often having one or more of its attorneys speaking at the event. Pictured below at the Homestead (from left to right) are Brian Muse, Liz White, Will Sleeth, and Lori Schweller.

LeClairRyan attorneys Lori Schweller and Will Sleeth will be speaking once again at this year’s Community Association Day trade event sponsored by the Central Virginia Chapter of CAI, which will take place this Tuesday the 18th. The two will be giving a presentation titled "Common Area, Common Problems — Parking, Drinking, and Other Liability Issues".

For more information about this year’s CA Day, including information about how to register, please click here.

 

  Amazon.com’s recent announcement – that in the future it may utilize unmanned drones to deliver packages to individual residences – has created a host of novel legal issues that all homeowners associations should consider and plan for. Although commentators believe that the commercial use of delivery drones may be a few years off, associations should begin planning now for whether they should regulate the use of drones within the association; how they should regulate the use of drones; and how they can minimize potential liability arising from the use of drones.

While the public has so far only been provided with bits and pieces of information about the make-up and capabilities of unmanned delivery drones, some general information is available: a drone will carry a package and will fly from a warehouse to an owner’s house, with the goal of attempting to deliver the package in a very short amount of time right after it has been ordered. The drone is designed to land, helicopter style, on an owner’s lawn and drop off the package. The drone will then use its helicopter-style propellers to vertically ascend from the owner’s lawn and return to the warehouse.

Continue Reading Drones and HOAs: How Homeowners Associations and Condominium Associations Can Be Prepared to Deal with the New Technology