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We
also work closely with professional managers, management
companies, and boards of directors to assist in the
daily operations of associations, as well as yearly
elections and long-term planning. We feel that one of
our greatest assets to our clients is that we are accessible
and are not hidden behind layers of staff and assistants.
We are directly responsible to our clients and we do
not shift the legal work of our clients to non-lawyers.
Our bilingual professionals also assure that those clients
who prefer to converse in Spanish will receive the personalized
service they deserve.
The
legal profession has changed drastically, with a trend
toward larger and impersonal law firms who attempt to
maximize their profits at the expense of their clients.
C&O is built on the idea that personalized service is
of the utmost importance to our clients, as well as
accessibility for those unanticipated emergencies. Phone
calls are returned promptly and the professionals of
C&O, are available during off-hours to better service
our clients. By staying true to our priorities, we are
able to establish strong relationships with our clients
and satisfy their legal needs.
COLLECTION
PROCEDURES:
LIEN
FORECLOSURE PROCEDURE
CONTINUING
EDUCATION
TRANSFER OF CONTROL
ANNUAL MEETINGS
BUREAU OF CONDOMINIUM
GENERAL REPRESENTATION
PROCEDURE
FOR COLLECTION OF MAINTENANCE AND FINE ARREARS
We
at Cuevas & Ortiz, P.A., feel that it is important
that in representing our clients we do not just protect
their legal needs - we should also be protecting their
financial needs. With this concept in mind, we provide
a cost effective way for the collection of maintenance
arrears (and fine arrears for Home Owner Associations),
without negatively affecting our clients monthly cash
flow. The general concept is that we do not get paid
until a collection matter is resolved. We have been
able to substantially reduce the accounts receivables
for our community association clients by increasing
the efficiency of the collection procedures. Our unique
procedure assures our clients that C&O is diligently
pursuing collection matters because C&O is not paid
until the job is done.. Our calendering system and monthly
status reports sent to our clients ensures that collection
matters are handled in a timely fashion. We recommend
that maintenance checks for those units currently under
collection proceedings be sent directly to our office
so that we can monitor those cases. However, we will
gladly work together with the Association if they desire
to receive checks directly. Our goal is not to affect
our client's monthly cash flow.
We
provide two alternatives for the collection of maintenance
arrears:
- Lien
Foreclosure Actions (the preferred method)
-
Small Claim Actions – wherein we seek to get
a judgment against the unit owner directly
LIEN
FORECLOSURE PROCEDURE
As
with our Small Claims Actions procedure, instead of
receiving monthly bills from our firm for legal services
related to collection matters, we do not collect our
fees until the end of the procedure and directly from
the unit owner. Our recommended procedure is as follows:
- Determination
of Unit Owners In Arrears: On the 10th or
15th day after the date on which assessments first
come due, delinquent unit owners will be sent a short
but firm notice by the Association advising them that
their payments are overdue and that their failure
to pay immediately will result in the referral of
the matter to the Association's attorney. The Association
may decide to have C&O send such notice.
- Request
for Attorney Action: At the Association's
request, any account still delinquent after all efforts
by the Association have been exhausted will be referred
to C&O for collection. When a matter is referred to
C&O, it will be submitted on our form titled "ATTORNEY
AUTHORIZATION TO PROCEED WITH COLLECTION MATTER"
(or similar document) along with a copy of the unit
owners accounting statement. The Association will
instruct the Law Firm to either:
- Send
a letter to the delinquent owner requesting payment
of the outstanding obligation and specifying the
Association's intention to file a claim of lien
and foreclose on same if the entire balance is
not forthcoming; or
- Proceed
with the filing of a Claim of Lien after such
lien is executed by the Association. C&O will
then send to the unit owner, by certified mail,
a copy of the Claim of Lien, together with the
notice of the Association's intent to commence
an action to foreclose that Claim of Lien thirty
(30) days from the date upon which the letter
is mailed, unless full payment is made. The collection
procedure will comply with the Fair Debts Collections
Practices Act.
- Charges
To Be Paid By The Unit Owner: All legal charges
will be collected directly from the unit owner. We
do not bill our clients until a matter is resolved
either through payment, entering into a settlement
agreement, or at certain other stages which result
in finalization of the collection process.
- Collection
of Payments: C&O recommends that all payments
made by unit owners that are in collection proceedings
be made directly to the Law Firm. C&O will deposit
the funds in its trust account and account such payments
separately. Immediately upon the clearing of the funds,
C&O will issue a check to the client for the maintenance
or fines amounts that have been collected. The benefit
of this procedure is that C&O will ensure that the
Association will not accidentally waive its rights
to recover attorneys fees and court costs, because
of the cashing of a restrictively endorsed check.
However, if the Association desires to receive payments
directly for those matters that have already been
turned over to C&O for collection, the Association
is urged to be cautious in accepting partial payments
of assessments for those unit owners that are in collection
proceedings so as to avoid waiving rights to collect
any balances owed on an account. If in doubt, the
Association should call the Law Firm.
- Proceeding
to Litigation: In the event payment has not
been made in full by the end of the thirty day period
from the date on which the notice was mailed to the
unit owner (if such notice was required by the Association),
the Association will authorize C&O to initiate foreclosure
proceedings against the Owner and his unit (home).
C&O will undertake the following:
- Confirm
non-payment with the Association or its manager;
-
Obtain
title search in order to determine the true ownership,
all correct names, and interests of any other
persons or entities, such as lien holders.
- File
a Complaint to Foreclose the Claim of Lien against
that unit. The Complaint will seek foreclosure,
and, as an alternative count, all delinquent assessments
in the form of damages. The Complaint will also
seek to recover all of the costs related to the
collection procedure, including the costs of the
title search and reasonable attorneys fees
- When
Legal Fees Are Due C&O: C&O will
seek to recover compensation for those services involved
in the litigation directly from the delinquent owner(s)
or from the proceeds of a foreclosure sale. If the
case goes through foreclosure and the Trial Court
awards legal fees which are less than that for which
the Association is obligated, C&O agrees to accept
the amount set by the Court as full payment of the
obligation of the Association for the litigation.
NOTE:
If the Association desires to enter into a payment
schedule with the unit owner, the Association must
first request an "Attorney Fee Estoppel Letter"
from C&O so that all charges made to date will be
included in the payment schedule.
NOTE: If the Association is notified that a unit is
being offered for sale, the Association must request
an "Attorney Fee Estoppel Letter" from C&O
so that all charges made to date will be included
in the amounts owed to the Association at closing.
At no time will C&O bill the Association on a monthly
basis without having finalized a foreclosure procedure
or providing an "Attorney Fee Estoppel Letter"
pursuant to a payment schedule entered into by the
Association and the Unit Owner or the sale of a unit.
This protects the Association's monthly cash flow
and gives assurance to the Association that C&O will
diligently pursue all collection matters.
- Costs
Incurred In Collection Procedures: The Association
will be responsible for all costs related to collection
procedures before they become due, such as filing
fees for liens, filing of complaints in the court
of proper jurisdiction, and title search costs. The
Association should put these charges directly on the
unit owners account. Note that these charges are usually
minimal when compared to the legal costs of the collection
procedure, which of course are not charged to the
Association but instead directly to the unit owner.
Continuing
Education for Community Association Managers
and
Information Services for Boards of Directors
Cuevas & Ortiz, P.A., is approved by the Department
of Business and Professional Regulation (DBPR) to provide
continuing education courses to Licensed Community Association
Managers (C.A.M.) for the purposes of meeting licensing
requirements of the DBPR. Our courses provide up to
date information on the most recent laws as they affect
community associations and their members. Our seminars
are also very useful for members of the Board of Directors
so that those interested can learn more about their
responsibilities and obligations.
UPCOMING
SEMINARS
To
be scheduled...
TRANSFER
OF CONTROL
The
transfer of control of the Association from the Developer
to the Unit Owners is an essential time for the Association.
It is at this time that the Association must investigate
the status of all accounting, legal, and structural
issues that can affect the Association. The concept
of Transfer of Control, also known as "Turnover",
has many pitfalls that must be considered by seasoned
professionals. C&O has extensive experience in turnover
negotiations, investigation, document preparation, and
litigation. We also work with many experienced accountants
and engineers who are intimately familiar with all issues
related to Association Turnover.
Even
though the Condominium Act (Chapter 718, Florida Statutes)
details the documents needed, there is no substitute
for experience when it comes to Transfer of Control.
We will be more than happy to meet with your Board of
Directors or your Property Manager to discuss the issues
and give you guidance as to the areas that must be examined
carefully so as to protect the interests of all members
of the Association.
ANNUAL
MEETINGS
The
Annual Meeting is the most important meeting for the
Association. The purpose of the typical annual membership
meeting is to count the ballots for election of members
to the board, receive the reports of officers and directors
as to the state of affairs of the Association, and,
if applicable, approve or reconsider a budget, waive
or fund reserves, approve amendments to the condominium
documents, and waiver certain financial reporting requirements.
We at C&O work with our clients, through their Board
of Directors and/or their property manager, to ensure
that the Annual Meeting functions smoothly. We can provide
services related to the preparation and mailing of all
statutorily required notices, ballots, proxies and other
documents. We can also provide services of overseeing
the procedures for the counting of ballots and other
issues that are voted on during the Annual Meeting.
BUREAU
OF CONDOMINIUM ADMINISTRATIVE PROCEEDINGS
The
Department of Business and Professional Regulation,
and in most cases the sub-unit called the Bureau of
Condominiums, has primary responsibility for enforcing
the provisions of the Condominium and Cooperative Acts
that relate to the development, construction, initial
sale or lease, ownership, operation, and management
of residential condominiums and cooperatives. Included
in its broad powers of overseeing the establishment
and functions of condominiums and cooperatives, are
mandated arbitration and mediation provisions. C&O offers
services to our clients in managing these regulatory
requirements in an effort to enforce the rules and restrictions
provided in our clients Declaration of Condominium of
Declaration of Covenants and Restrictions.
GENERAL
REPRESENTATION
There
are many, many other areas of Community Association
Law, which are not discussed in this website for which
C&O has extensive experience. We provide continuous
consultation to our clients as to the interpretation
of the documents that control their association, contract
formation and enforcement with third party service providers.
Formal legal opinions are provided to our clients when
requested. We also counsel Board Members as to their
obligations and responsibilities, as well as assist
them in making legal decisions.
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