Research Matters: How cutting corners in legal research costs community associations

Seemingly trivial oversights or cost/time saving techniques are often the root of an association and its management company being co-defendants in unwanted litigation. Our firm has represented management companies, managers and associations in these matters in an exceptionally large number of cases.  Community association lawyers play an integral part in reducing the potential occurrence of unwanted litigation. This article focuses on the proper method for checking record title in collection matters.

The Reliable Way to Do Title Searches

County Title Records

Each time a collection or compliance step is taken, record title to the property should be verified. Reliable title research takes mere minutes, yet many folks in the community association industry, lawyers included, fail to follow best practices. They rely on questionable resources rather than confirming record title through the most accurate resources.  

In many instances, the appraisal district records are used as the sole resource for determining ownership.   While these records can be a good resource for finding alternate addresses, appraisal district records are not determinative of record title to real property.  

 

The only source for current record title is the real property records of the county in which the property is located.  Many counties grant access to these records with “unofficial” documents available at no charge.  For counties that do not grant this type of access, subscriptions to the databases and/or vendor charges for title work are affordable and worth it.

The potential risk to the association and its management company is that a demand for collection or compliance may be sent to the incorrect party or address.  A suit against the community association, management company, and possibly the manager, for violation of the federal and state debt collection laws and a wrongful foreclosure is born. 

  

The amount of protection gained from a quick and affordable title search is immeasurable and good insurance against unwanted litigation.  Board members and management companies should check with their legal counsel to ensure that they are protected by reliable title searches.

Brady E. Ortego, of Roberts, Markel, Weinberg, PC, is an attorney specializing in community association law.  He is a frequent author and educator on issues affecting community associations and is active in community association industry support groups such as the Community Associations Institute.