2 Tips for Avoiding HOA Litigation

Home owners associations must be careful to avoid litigation, which can eat up both time and money. There are a number of steps your HOA can take to avoid this issue, although this brief article will discuss two methods that can prove effective.

The first tip for avoiding costly HOA litigation is to never accept contracts without a review or negotiation. Before you begin working with vendors, remember that a fair contract can eliminate the need for litigation entirely.

A good example of this is a contract that is set to expire on November 1st by itself. If you choose not to renew this contract there will be no litigation.

On the other hand, a contract that automatically renews for three more years can prove troublesome. If the president who negotiated the contract initially has left and there is no one who knows about this automatic renewal provision, you're left without options if you decide to cancel and will probably end up in court. This emphasizes the importance of consulting with a litigation services law group regarding your existing contracts.

It's just as important to fully understand your contractual duties and document any problems you may experience. Always track your contractual obligations, know when contracts will expire and understand the steps that must be taken to terminate contracts the right way.

When you encounter problems, document them completely and notify your vendor in writing. Doing this gives you documentation to back up a termination if you need to send a termination letter in the future. Never leave yourself trying to back up a termination without documentation of complaints, calls to the company and details about who you contacted.

Of course, this means you must do your part by sending a notice of termination to the proper person and using certified mail to verify they received it.

Without these measures, the association is put in a vulnerable position as the vendor may decide to sue based on breach of contract. If an association fails to hold up its end of the contract, there is very little a litigation lawyer can do to mitigate the problem.

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