This is a legal fee dispute where the President of a homeowners association hired an attorney to collect on an overdue special assessment by threatening foreclosure on a homeowner. The attorney didn't write to the homeowner stating a date by which he was to make full payment. He wrote a threatening letter to the homeowners BANK that the HOA was foreclosing, just an an FYI to the bank with a cc: to the homeowner. But no demand was made of the homeowner or written threat that they would be charged legal fees if the payment were not made by any deadline.
For this the attorney sent a bill to the HOA President who is trying to make the homeowner pay for it. But the laws state the homeowner gets time to cure the payment default before he can be charged legal fees. The homeowner paid, the default went away, but now the HOA President still wants her attorney's fees paid by the homeowner. The law CLEARLY states the HOA President cannot collect because proper advance notice wasn't sent. So now the HOA President is panicked because she or the HOA who elected her may have to pay the attorney's fee which is only fitting since she hired him, received the benefit, but somehow believes the other party always has to pay for the attorney.
But now as an intimidation tactic, she has sent the homeowner the attorneys bill for NEXT week if he doesn't pay this past months bill. The lawyers bill is on his letterhead for services not yet even rendered. But it is being used like a threat to induce payment by the homeowner. And because the homeowner cured the default, the law says no-one can foreclose just to collect attorney fees.
The attorney is a DIVORCE and PERSONAL INJURY attorney -- not a REAL ESTATE attorney. And the laws regarding Attorney Fees are contained in the PROPERTY CODES of the state which a divorce or personal injury attorney might not know. Still, they are an attorney now practicing out of their regular field, and believe they can advance bill for services not yet performed (i.e. another threatening foreclosure letter to the bank) when the law says foreclosure could not happen for legal fee collections alone. The lawyer can't win but may not know this. Still they are trying to collect through questionable advance billing.
Is this allowed? Is it unethical? Might it even be Malpractice?
To responder Homer claiming attorney fees are NOT contained in state property codes: Check Texas Property Code 209.208 "Attorney Fees" under the Texas Residential Property Owner Protection Act.
http://tlo2.tlc.state.tx.us/statutes/docs/PR/content/htm/pr.011.00.000209.00.htm
Maybe your state doesn't have this but ours does. Laws can vary state to state.
Please state your source in your response and if you are an attorney or other legal professional. Not looking for wild guesses on this one.
PS -- When responders direct to "go check with an attorney", do they really think that is helpful advice as if the Asker doesn't know this already? Many attorneys as well as other professionals answer questions over Yahoo! Answers, so the hope is attract that level of advice on questions like this versus someone guessing or stating the obvious which is no value added. Please don't point game.
Answer by Max Hoopla
There is nothing wrong with asking for a retainer.
Answer by LoveYa!
You pay a retainer fee for work that is described by the hour.
But you must ask for an itemized list and check on them because they basically charge whatever they want.
Once they work beyond the hours covered in the retainer fee, they start billing you again.
The entire thing is a huge scam. Keep your eye on the work and ask lots of questions about how long it took.
Answer by Homer
HOS president hired the attorney acting for the benefit of the HOA. Pres was aget of principal (HOA) HOA must pay. Done.
Fact attorney specializes in divorce does not mean they were not trained in other aspects of the law
good night
Answer by Vet's Daughter
You need to check with a real estate attorney to see what's legal. Since you didn't hire the lawyer, I don't think that you can be forced to pay the bill. Unless there is something in your HOA contract that says you're responsible for legal fees.
Answer by US Army Veteran
The HOA president does not collect.
The HOA Treasurer sends a 15 day notice if the homeowner is at least 30 days deliquent. The Notice must meet the all legal requirements.
If the Homeowner does not pay the Assessments within the 15 days after the notice was mailed by first class mail, then the HOA is entitled collection costs, including attorneys' fees and court costs.
Whether or not the Attorney bills the Association or the Homeowner, or for how much is not very relevant.
The relevant part is that the Homeowner may lose their entire house over a few hundred dollars.
The HOA will foreclose on the property, evict the owner and/or tenants, and sell it for what is owed.
The ex-homeowner is still required to pay all costs of collection and foreclosure.
At least that is the way it is in my state.
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Orignal From: Is it ethical for a lawyer to bill you in advance for work he WILL do if you don't pay his CURRENT bill now?
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