The August Issue Includes:
- How to Reply to This Newsletter
- Free Money for the Association and Lots of It!!!
- Coyotes, Bears, & Toads - Oh My!
- Kudos!
- And The Winner Is...
- CM Short Takes
- On Demand Board Certification Classes
- "Elective" On Demand Classes Available
- Board Certification Form Available
- Board Member Update & Mailing List Request
- Manager/Vendor Referral Service
- Get the Trending News with Facebook
- Two Ways to Follow Us on LinkedIn
- View Our YouTube Videos
- About the Green Marble
- CM Contact Information
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When replying with a question or a statement, please include your full name and legal name of your Association, if you are a Board or Committee Member and/or Resident, and if you are a manager, your name, name of the your Management Company or if you are an independent manager, the name of the Association you manage.
No acronyms please, unless your legal name is an acronym, This will expedite our reply to you as our database is by Association or Management Company.
Make a comment on our featured article or other articles by simply emailing pr@clayton-mcculloh.com. Don't forget to add your Association, email address, and phone number so we can get back in touch with you. We may even ask if we can publish your comment in the next issue.
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Free Money for the
Association and Lots of it!!!
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Does your association’s Governing Documents (e.g., its Declaration) require future purchasers of Lots and/or Units within your community, upon closing, to pay the association a capital contribution? If not, you’re losing out on free money. Even if your Governing Documents require such capital contributions from future purchasers, is the amount too low? Please appreciate that a capital contribution requirement in the association’s Governing Documents (e.g., its Declaration) would generally require each future purchaser (and/or transferee) to make a one-time contribution (i.e., a payment) to the association at the time of purchase in the designated in the Declaration. [1] By way of example, a capital contribution provision in the Declaration may require purchasers to pay an additional one time assessment to the Association in the amount of one-thousand dollars ($1,000.00).
Ultimately, Clayton & McCulloh believes that associations and their current owners greatly benefit from capital contribution requirements in their Governing Documents. In many ways, we see capital contribution requirements, as alluded to above, as providing the association with free and easy money. While we appreciate that someone may, at least initially, be concerned that requiring a capital contribution may have a chilling effect on sales or potentially even preclude sales, I have never experienced this. To the contrary, I have never had anyone object, challenge or even question them. In fact, I am unaware of an association that has ever been challenged or questioned with respect to them. As such, it is my overwhelming experience that they are automatically paid at closing without objection.
There are various reasons why capital contributions go unquestioned. However, the primary reason may be that purchasers are probably not even aware that they are paying them. Please appreciate that at closing, there are all sorts of fees above and beyond the purchase price of which purchasers generally have little or no understanding. By way of example, if you are buying a piece of property for one-hundred thousand dollars ($100,000.00), at closing the amount that you may be required to pay might be one-hundred and seven thousand dollars ($107,000.00) due to the other expenses and charges associated with the purchase (e.g., title insurance, closing cost, document stamps, taxes, recording fees, proration of assessments, etc.). Ask yourselves, what percentage of purchasers really understand these charges, their propriety and whether they have been accurately and properly calculated? In my experience, most people just rely on the closing company’s calculation. Moreover, the closing company generally requests and gets an estoppel letter from the association delineating assessments and other charges due to the association at closing. As such, this is just another assessment/charge.
In addition to the above, please appreciate that usually when people are purchasing property, they sign the contract without ever reviewing the association’s Governing Documents and the requirements therein. Therefore, the purchaser(s) usually are bound by the contract and its terms despite never having reviewed the Governing Documents. Even if a purchaser obtains the Governing Documents prior to executing the contract, what percentage of purchasers ever read them, much less, read them prior to closing? Even those who endeavor to read the Governing Documents, at best, normally only scan them or review them for other purposes. As such, what is the probability that a purchaser is going to understand that by purchasing, he or she is going to be making a one-time contribution? Even if he or she understands the requirement of a one-time contribution, what is the probability that he or she is going to object or even try to kill the purchase predicated on such a relatively minor amount compared to the purchase price? In any event, remember that the sales contract has already been signed and the requirements in the Governing Documents must be met.
In addition to the above, please consider that it is in each of the current owners’ best interest to have and/or implement a capital contribution requirement as it will defray association expenses and should reduce the amount of future assessments he or she will have to pay. Therefore, each and every one of the current owners should be in favor of capital contributions.
For your convenience, we have listed, in outline form below, some of the potential benefits of associations’ Declarations requiring capital contributions:
1. Free money;
2. Reduces assessments;
3. Provides capital to defray expenses, especially for potentially unpopular and/or controversial expenses;
4. Generally, collected as part of the closing process by the title company;
5. Current owners pay nothing extra;
6. Purchasers are generally unaware of the requirement for payment;
7. Purchasers generally are unaware that they are making (i.e., paying) a capital contribution to the association;
8. Generally, purchasers sign their purchase contract and are bound by its terms prior to obtaining the association’s Governing Documents, much less reading them, much less appreciating their requirements (including payment of a capital contribution);
9. Even if a purchaser learns of the capital contribution, is he or she really going to object and try to forgo the purchase due to the extra charge?
10. The purchaser being obligated to pay the capital contribution pursuant to the Governing Documents (e.g., the Declaration) and, if he or she fails to pay it, then, provided the association’s Governing Documents are properly worded, it should be able to be collected as a type of assessment for which the association can lien and foreclose;
11. All current owners, ostensibly, benefit from a capital contribution, and
12. The lack of chilling effect on sales.
Given the above, associations should seriously consider amending their Governing Documents to provide for capital contributions, if they do not already require them. Moreover, even if your Governing Documents provide for a capital contribution, consider whether your association may want to amend the Governing Documents to increase it.
[1] If the association is going to amend its Governing Documents (e.g., its Declaration) to provide for a capital contribution or increase the amount of its already existing capital contribution, it may want to consider a capital contribution of one-thousand dollars ($1,000.00) or one years’ worth of assessments. However, we have seen capital contributions which are less, as well as substantially more.
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Coyotes, Bears, & Toads - Oh My!
August 25th at 6:00 p.m.
Speakers: Attorney Morgan Swenk
and Leo Cross of Florida Wildlife Trappers
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Florida is being over-run with several invasive and nuisance animals:
- Coyote population is multiplying endangering pets;
- Bears are entering our communities with no fear;
- Poisonous cane toads are encroaching on Central Florida with fatal results for our pets;
- Irresponsible pet owners allow their dogs to run free to possibly attack your residents and other pets.
This class is based on one of the most talked about subjects on social media - especially on Nextdoor. This class will deal with the nuisance animal population that is increasing and affecting residents of communities. What steps, if any, can an Association take to deal with these nuisance animals? The objective of this class will help you identify the problem and suggest possible solutions to this growing area of concern. This class was one of most requested classes from Board Members over the past two years. Attorney Morgan Swenk and Wildlife Trapper, Leo Cross, will be the hosts of this event.
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Everyone is touched when they receive kind words about their actions. Our firm is no exception. Clients have asked us over the years, "Is there some place that I can submit a compliment that would get to the right person and also give them some internal recognition?" To that end, we created a "Kudos" page on our website to provide people an opportunity to recognize members of the firm.
- Has one of our attorneys or staff members gone above and beyond on your behalf?
- Did you receive a great result in a case as a result of our attorneys and paralegals expertise?
- Did someone in our Billing Department provide more information on an invoice?
- Was our Client Services Department helpful in handling a non-legal matter for you?
- Did our receptionist brighten your day with her greeting?
- Or maybe you had a positive experience with our webinars or other complimentary services, such as referrals or assistance after hours?
- Perhaps you would like to share with the firm your appreciation of our representation of your Association or a particular case?
Our staff will be recognized internally at our monthly meetings and by a firm email with your kind words.
If you would like to submit a "Kudo" to be shared with that staff member or attorney, you may do so by clicking the button below. Your kind words are not automatically published in our newsletter or Facebook page unless you specifically authorize us to.
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And The Winner Is...
Congratulations to the following winners of the Survey contests from April through June. If you are a winner, be on the lookout for your door prize in the mail. "Tune in" later to find out the July winner! The next winner will be announced in an upcoming newsletter.
James Ward, Director - Mark Mobile Homeowners Association
Sheryl Lager, Director - The Reef Condominium Association of Melbourne
Susan Maurer, Vice President - Raintree Forest Property Owner's Association
If you want to be eligible for future door prizes, make sure to complete and submit your survey when taking any board certification, elective, or Short Take course. We will add your name twice to the drawing if you make a donation to our Pet Drive!
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Don't Forget to Register for Our Short Takes! |
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What is a CM Short Take? Glad you asked! It’s our brand new complimentary 10 minute or less (excluding introduction and closing) informal discussion presented by one of our attorneys, staff members, or guest expert speakers from the community association industry. Brand new for ’22, these pre-recorded Short Takes will include legal, and practical non-legal topics for associations’ board members, managers, committee members, and residents alike! Short and sweet. Be on the lookout for new Short Take posts each month!
There is an optional five question survey you can take afterwards for which we will add your name to our monthly drawing for a special gift. If you make a voluntary donation of any amount for our Pet Drive for the Short Take, we will add your name in the drawing twice! This promotion ends August 15, 2022.
Do you have a suggestion for a topic or a speaker? Let us know below so we can work it in our schedule. This is a great opportunity to request any topics in a perceptible, concise presentation that is accessible and free. It may be an issue your association is facing or something you're interested in!
Alright, alright, alright! People are loving our Short Takes! Our current Short Takes which are now available are:
“All About Short Takes” with Arlene Ring, Director of Public Relations
“Fining Tips from Alan” featuring Partner, Alan Schwartzseid
“How to Read a Financial Statement” with guest community association expert - Bill Jackson, CPA
More Short Takes that will be making their debut soon:
"Title Searches: A Necessary Evil" with our Founding and Senior Partner,
Ken Clayton
"The Critical Elements of Turnover" featuring our Founder and Senior Partner, Neal McCulloh
"Political Signs" with Partner,
Alan Schwartzseid
"Do or Die! - Failing to File Timely Corporate Report" featuring our
Coordinator of Client Services, David Batan
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All NEW Board Certification CM On Demand Classes! Plus Elective Classes
You read it right! We now have all new Board Certification Classes including all the major changes last year. Even if you are already certified, we strongly encourage you to retake the course because of all the recent changes that affect community associations.
From the firm that Embraces Community, we now feature three Board Certification classes and multiple Elective classes - all on CM On Demand for viewing in the convenience of your own home and on your own time - throughout the 30 day viewing period.
This is a complimentary service for all active clients, however, they may make a voluntary donation to the Pet Drive of any amount. There is a small $15 fee for non-client registrations that directly benefits our Pet Drive.
For all of our CM On Demand Classes - please remember to carefully read and fill out the reservation form and instructions prior to submission as errors may prohibit it from going through. Wait for the automated receipt banner confirming that the registration went through.
Do not share the links! If we receive notification that the link has been shared with an unauthorized individual, your association may be banned from taking future CM classes.
So, pop the popcorn, pour your favorite beverage, grab your pen and pad, and settle in for easy On Demand viewing on your computer, smart phone, or tablet! From the firm that Embraces Community, help us put you first with this personalized service.
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Announcing Our CM
On Demand Elective Webinars!
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The following CM Elective On Demand Classes are now available. Please view the class summary on our website and register at the link below.
The 2022 Mini Legal Update
Who Does What: Officers Duties
To Special Assess or Not to Access? That is the Question
What?!! We Can Be Sued Because of Our Website?
Elements of Community Association Insurance
Are You on the Eve of Destruction?
Effective and Destructive Posts on Social Media
Bad Board Members:
What 'Ya Gonna Do When They Come for You?
Working with Acts of God
Paradigm Presents: The T's of Telecommunication
Oh, What a Night!
2022 Mini Legal Update
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Don't Want to Take the
Board Certification Class?
If you prefer not to take the certification class, CM offers the Board Certification form which you can use to opting out of taking the class. There is a $10 donation for this service that is exclusive to our clients. The donation goes directly to our Annual Pet Drive to assist the private non-profit 501 (3) (c) rescues with their vet bills.
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Have You Submitted Your
Current Board Information to Us?
Want to Be on Our Mailing List?
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Clients, it is very important to submit your current Board information to us within thirty days of being elected by contacting the Client Services Department and/or clicking the corresponding button below.
If you are not currently a client but would like to be on our mailing list, please click the corresponding button below.
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Time for a New Manager or a New Vendor?
We Can Help!
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It's that time of the year again when Associations are thinking "Wow! This is more work than I want to do," or "Not sure about our present manager - maybe we should look into possibly hiring a new one?" Does this describe how you are feeling?
If so, we can help. Whether you are a client or a not, we provide a complimentary Management Company Referral Service to help you find a Manager! If you have a Manager presently, we always recommend trying to work it out with them as you have a history which is quite valuable. If you are uncomfortable about approaching your current Manager or Management Company, as one of our clients, we can contact the company or manager to see if we can assist in resolving the issues.
Do you need a landscape, insurance, painting, or roofing company? We also offer a complimentary Vendor Referral Service to help you find vendors who work with associations like yours. We have many vendors that we can refer to you and your fellow board members to help make your job easier.
For more information on this service, please call our Director of Public Relations at our office at 407-875-2655 ext. 129 or at (407) 808-2553 after hours/weekends. You can also make a request by clicking the button below.
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Get The Latest Trending News!
Like and follow us on Facebook for:
- Late Breaking News on topics affecting Community Associations,
- Seminar Invitations,
- Legal Updates,
- Human Interest Stories,
- and much more!
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Follow Us On LinkedIn for:
- Legal Articles for Community Associations,
- Legislative Updates,
- Advance Notice of Seminars, Webinar, and Special Events,
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Follow our Director of Public Relations, Arlene Ring, for:
- Articles addressing practical issues with solutions for Community Associations' Board & Committee Members,
- How To Articles for Board and Committee Members,
- Special Interest information for CAMs and Community Association Vendors,
- and more!
Connect with Arlene here.
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Have You Checked Out Our YouTube Channel?
Our attorneys have personalized videos on our website and our YouTube Channel covering different aspects of Community Association Law! See some of our newest videos below or check out our channel here.
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Ken Clayton,
Founding & Senior Partner
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Neal McCulloh,
Founding & Senior Partner
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Russ Klemm,
Partner & Litigation Chair
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Arlene Ring,
Director of Public Relations
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About the "Green Marble"
The Green Marble is a monthly digital newsletter, a complimentary service for our Association Clients and Managers. CM also features an additional monthly digital newsletter, "CM Update," an annual "Community Chat" (delivered to your home via USPS), and "CM Special Editions." These publications are published by our Public Relations Department. If you have any questions, comments, or suggestions about this newsletter, please contact us at pr@clayton-mcculloh.com.
You are receiving this e-mail as you fall into one of the following categories:
*You are currently a client or client's manager;
* You have requested to be on our mailing list;
*as a former member of BCAM and NECAM you are
provided a complimentary subscription to the CM mailing list;
*By attending one of our seminars, you agreed to be part of our Confidential Mailing list.
If you would no longer like to receive seminar invitations, up-to-date information and changes regarding Community Association Law, newsletters, or exclusive, premium CM services, please contact us at pr@clayton-mcculloh.com.
When replying with a question or statement, please include your name and the legal name of your Association or Management Company (no acronyms, please, unless your legal name on the Article of Incorporation lists an acronym.)
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Orlando Office: Maitland
The Clayton & McCulloh Building
1065 Maitland Center Commons Blvd.
Maitland, FL 32751
Phone: (407) 875-2655
Fax: (407) 875-3363
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Toll Free: (888) 793-1486
After Hours - 24/7: (407) 808-2553
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