How does an Association enter into an LMF agreement, does it require an owners meeting and vote?
Once an Association submits the online questionnaire, LMF will prepare a Funding Estimate. If the Association is interested, LMF will then provide its standard Purchase Agreement for review by the board. Usually only board approval is required. LMF recommends that the board’s attorney review the agreement unless the board’s attorney is also performing collection work and therefore has a conflict of interest. Every major law firm in Florida has reviewed the LMF Purchase Agreement. A list of attorneys who are familiar with the LMF agreement is available upon request. They typically charge $500 per review. The Purchase Agreement is really an agreement that provides the association with an option to sell accounts to LMF. Once the Purchase Agreement is signed the association sends ledgers of accounts it wishes to sell to LMF. LMF hires a title company to review the accounts and prepares a Schedule of Assignments which simply lists the accounts and amounts funded. The association and LMF exe
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