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CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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The CCR's condo HOA state that the treasure and president

Customer Question

The CCR's for my condo HOA state that the treasure and president have to sign all checks to venders. The association lawyer gave me a $43,000 invoice when I asked for a construction project. This invoice did not go through the board meeting nor logged in with the management company. I showed this to the president and he said he never saw the invoice. Another board member told me he signed it. I spoke with the treasurer and she said she never saw on and told me to move on. The president told me he was unaware of the CCR's and anyone has been eligible to sign for checks and they have done it that way for the past ten years. All meeting are attended by the board members, a representative for the management company, and the lawyer.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 2 years ago.
Dear Customer, thank you for using our service. I would like to assist you today. Responses may have a short delay for review and research.
It appears you have identified an issue with the HOA Board failing to follow the CC&Rs.
Hopefully they will begin following them properly in the future.
Generally, there will be no action or penalties for failure to follow this kind of CC&R or By-Law in the past, the issue is going to focus on future performance. If there were issues with budget or purchase issues in the past, having a problem like this can compound the matter and open the board up to additional liability, but in and of itself there is not going to be any significant issue.
Is there an issue or a question you need addressed?
Customer: replied 2 years ago.
Thank you. There was issues about this in the past but it was settled.
Expert:  CalAttorney2 replied 2 years ago.
That is excellent to hear, I am glad to hear that it was settled.
Thank you for using our forum, and please do not forget to rate my service so that I can receive credit for assisting you.
Thank you again, and again I wish you the best.
Customer: replied 2 years ago.
Thanks. What about this. The invoice never went to the board or at a meeting, and the invoice was just paid by that one board member on his own (and I think he has a personal relation with that contractor). The president and treasure never saw the invoice. Again, the lawyer had it. The management company did not have it.
Expert:  CalAttorney2 replied 2 years ago.
This shouldn't have happened in this way.
But again, if the issue was in the past, the board may have "affirmed" the action by this board member, and simply acknowledged the work was done, and the price was paid for it.
It may be worthwhile for the board to reiterate at a meeting the proper procedure for presenting bills at its next board meeting, and more importantly to bring this up with their attorney (I am somewhat disappointed to hear that the HOA's attorney presented an invoice in this fashion, particularly for a bill that was this high, they really should not have done this - while I do not want to propose a "knee jerk" reaction - if the Board has reason to lack confidence in their attorney for this or other reasons, they may want to consider changing counsel, or at a minimum reiterating with their attorney in writing that all invoices need to be presented to the board (usually this is done through the HOA's management who presents the bills to the Board or the President/Trustee in what should be a formal or at least specified procedurally manner).

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