Deed Restriction Enforcement Program

  In a perfect world, every homeowner would comply with the   rules that govern their subdivision and would maintain their   residence in a manner which would increase the value of every   home located within their community. Unfortunately, it seems   that, in every community, there are homeowners who do not   share this sentiment and, for whatever reason, choose to   maintain their residence below community standards.   Consequently, an association, after unsuccessfully attempting   to motivate a homeowner to bring their residence in line with   community standards, is often faced with the issue of whether   to use legal action to accomplish deed restriction compliance. If   the cost of legal services to obtain deed restriction compliance   was free, an association’s decision to use legal action would be   fairly easy to make. However, most associations are somewhat   leery about using lawyers or courtrooms to accomplish deed   restriction compliance because, even if they recoup their legal   costs in the long run, they have no way of determining their   initial out of pocket cost. As a result, the real question, in the   Association’s collective mind, becomes: “Is it worth it to spend   potentially thousands of dollars in legal costs to obtain   compliance in a single deed restriction matter?”

  In an attempt to address this concern, Gammon & Associates   offers a program for deed restriction enforcement which   minimizes an association’s out of pocket legal costs by   combining a capped out of pocket legal fee component with   a result oriented legal fee component. Fees for legal   activities relating to the enforcement of deed restrictions will be   invoiced to the Association on a monthly basis through the   preparation of the lawsuit petition and the Firm’s attendance at   the Temporary Injunction hearing. Following the Temporary   Injunction hearing, the association is no longer obligated to pay   upfront monthly charges for the legal services provided in   pursuing a deed restriction matter. Rather, legal fees incurred   by our clients after the Temporary Injunction hearing are   invoiced when money is recovered from the homeowner who has   failed to comply with the community’s deed restrictions. Most of   the legal cost incurred in pursuing a deed restriction matter   arises after the temporary injunction hearing and through, if   necessary, the ultimate trial of the lawsuit. In fact, more often   than not, the association’s costs for legal services rendered   through the Temporary Injunction hearing is approximately a   little over $1,000.00. Consequently, this program greatly   reduces the upfront monthly legal costs paid by our clients. As   importantly, it removes the possibility of the “black hole” deed   restriction lawsuit, in which, because of unforeseen   circumstances, the association spends thousands of dollars in   legal costs attempting to pursue a single deed restriction   matter. The purpose of this fee arrangement is to enable an   association to implement an active, uniform deed   restriction enforcement program by minimizing the   uncertainty of the cost to pursue legal deed restriction   enforcement.

  Knowledge of the maximum upfront costs that could be paid by   an association in a given deed restriction matter also enables an   association to project a much more accurate forecasting of   their annual legal fee budget. As importantly, the program,   because of its result oriented legal fee component, creates a   much greater incentive for the Firm to accomplish an efficient   and quick resolution of the matter being handled than a   traditional law firm who is paid for all of its legal efforts   regardless of their success.

  Following its attendance at the Temporary Injunction hearing,   the Firm agrees to invoice legal charges incurred for a deed   restriction enforcement matter, not in the month in which it is   incurred but, rather, when the sums are collected from the   homeowner responsible for the debt. Throughout the legal   process, the Firm will act as a collecting agent for the   Association. As the Firm collects deed restriction debt owed by   an individual to the community, the Firm will collect the checks,   money orders, and/or cash payments paid by homeowners and   will send them, in the form tendered, directly to the Association.   The Association, in turn, will be invoiced the legal fees   incurred for a given matter as sums are collected from a   homeowner. The payments collected by the Firm will be   forwarded to the Association accompanied by an invoice which   allocates, for the matter upon which payments are collected,   the portion of the sums collected that are to be used to pay   the legal charges previously incurred.

  The legal charges incurred every month for a given matter are   itemized on a client’s monthly status report and are the basis   for the legal charges set forth on the invoices which are billed   to the Association either on a monthly basis or upon receipt of a   homeowner’s payment. The status report for deed restriction   matters includes both a list of the violations turned over to the   Firm for pursuit as well as the date the initial compliance   request relating to the most recent violation was sent by the   Firm.

  Should an association have any questions with regard to this   service or program, or should it desire a meeting with a member   of the firm, please feel free to call us at 713-964-5340, fax your   requests to 713-964-5341, or email the firm at   info@gammonlaw.com.

    
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