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Are You Practicing Law Without a License? The Common Pitfalls and Dangers for Association Board Members

03 Apr 2015

The Unauthorized Practice of Law (“UPL” as it is commonly referred) by a member of a Condominium or Homeowner Associations Board of Directors is an ever-present danger that carries substantial risk to Associations and Directors alike.

A Director who commits UPL may subject his/her Association to substantial financial liability. Furthermore, a Director accused of UPL could personally be held liable; both criminally (UPL is a misdemeanor of the first degree) and civilly. This means that a Director accused of UPL may not only face criminal charges that carry a possible sentence of imprisonment and/or a fine, but also that they may be held financially liable to the Association for any damages suffered by the Association by their actions of UPL.

So what are some specific actions that constitute (or possibly constitute) as UPL? Directors drafting claims of lien or satisfactions of lien is perhaps the most prevalent actions that brings about claims of UPL. Directors preparing amendments to the Association’s Declaration, Articles of Incorporation, or Bylaws also avail Directors and Associations to claims of UPL. Determining the timing, method, and form of giving notices of meeting and/or determining the votes necessary for the community association to take certain actions constitutes as UPL. Drafting a Notice of Commencement Form (when constructing improvements on association property) is yet another example of UPL.

In conclusion, UPL is something that all Associations and Directors should be wary of. The best general rule to follow is that any action that involves advising the Association of the legal consequences of taking a certain course of action is UPL. So if you ever suspect you or your Association is committing UPL, minimize risk and liability by asking an Attorney for advice!