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As treasurer of my building, I have noticed that when we have had sellers and Buyers contracts of sales reviewed by our atty, we have not passed the cost onto the seller of shares. Is that correct or should any atty fees pertaining to vetting a sale should be charged back to the seller/shareholder?
If so, what is the statute of limitations? Can the amount be charged to the buyer who is now a shareholder?
Thanks
So if the Corp was billed for the lawyers' review of two sales packages two years ago, is it too late to send the atty fees on to the sellers if we know where they live?
Our Corp only charges $250 for the managing agent to assemble the package and board review. Since the legal fees can vary, it makes sense to just bill the seller at closing, right?
Thanks.
Normally your attorneys would not be representing the seller AND the corporation in the same transaction; however if that was the case, it is up to the attorney to collect those fees at the closing.
Legal fees for reviewing purchase application documents on behalf of the corporation are the responsibility of the buyer, not the seller. They are typically very cookie cutter and therefore should not vary - your attorney should provide you with a fee schedule that your property manager can collect as part of the application package. Because those fees are the responsibility of the buyer, it is not too late to pass those charges on to those shareholders.
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Those fees should NOT be paid by the corporation. We collect the fee for document review (contracts and recognition agreements) as part of our application package with the check payable to our law firm. This simple step ensures that the law firm gets paid and that we are not stuck with the bill.
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