Florida law very clearly prohibits the “Unauthorized Practice of Law”, also known as UPL, either by the Board of Directors, or the property management company.

This is a very delicate issue, often overlooked by Boards or the property management company. One that may have undesired consequences for the Association and the community interests.

Usually the UPL occurs when the law is interpreted by people who read the Florida’s Statutes and then act upon such readings and interpretations, disregarding the consultation of the Association’s lawyer, who is often deemed as “unnecessary”. However, there is not substitute for legal counseling.

It is never overemphasized to remind Boards of the importance of the Association’s lawyer, who is, usually, thought as being important for collections only. She (He) is like a guardian who protects the Board from anyone challenging their fiduciary responsibility.

Gold Property Management & Associates, Inc. would always recommend Boards to consult the Association’s lawyer for any issue that may affect their fiduciary responsibility.

This is the reason why Gold Property Management & Associates, Inc, works closely with the Association’s lawyer for the protection of the Board and the Association.

Another very relevant aspect of the relationship between the lawyer and the Association is the follow up of legal cases by the property management company. This is fundamental.

The Courts have several cases where legal matters were not dealt with the required care by the management company, leading in some cases to the appointment of a Receiver (or the loss of assets) by the Court. The consequences in these cases are devastating for the interests of the communities affected.

These are the areas where legal counseling is very important:

           Legal opinions

           Covenants enforcements

           Litigation

           Construction defects

           Insurance 

           Contracts

           Bylaws interpretation

           Difficult residents

           Disputes with vendors

Naturally, legal counseling has a cost. This cost should be budgeted and contracted either on a retainer basis, in case there is litigation, on an hourly basis, also known as per consultation, or on a collection basis. The latter should not be charged to the Association but to the violating party.

In cases of litigation, the legal fees should be accrued by the Accountant, and recorded as Accrued Legal Expenses in the Balance Sheet.