By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Dear Kelly: I moved into my townhouse four years ago with the dry rot and termite situation apparent. I received a letter from the then-president that the situation would be handled shortly. I have requested numerous times over the years as to the status of repair and keep getting the same answers, we’re getting bids. The damaged wood is attached to the unit and also is very unsightly, not to mention the potential of termites entering the home. Do I have recourse? R.M., Tustin

Dear R.M.: Townhouses could be a planned development or a condominium. It’s important to know which kind of HOA you live in, because the HOA’s responsibilities regarding termite treatment are completely different. Unless the CC&Rs say otherwise, in condominiums, stock cooperatives, and community apartments, the HOA is responsible for termite repair and maintenance per Civil Code Section 4780(a). Subpart (b) of the same statute places the responsibility on the homeowner in planned developments. 

This can be very problematic in planned developments where homes are configured “townhouse-style,” meaning side-to-side attached homes. In townhouse-style planned developments it makes no sense to leave termite treatment to individual homeowners since tenting the entire building is the common method, and only the HOA would have the authority to do that. If your HOA is a condominium, stock cooperative, or community apartment, and termite damage is worsening without the HOA taking reasonable action, the HOA may be failing in its responsibilities to the members. If it is a planned development HOA, the answer could be quite different – check your CC&Rs.

Best, Kelly

Dear Mr. Richardson: I own a stock cooperative home and was informed that due to extensive infestation we were required to comply with tenting. I requested another opinion and a copy of the termite report but was denied. Units must be kept open for three days — doors unlocked and we are supposed to supply the keys to our units. I received calls from the association and a letter taped to my door informing me that if I do not comply then the association will fine me, charge me for all tenting expense, take me before the board and ultimately evict me. B.C., Laguna Woods.

Mr. Richardson: Is there a law that the homeowners association cannot inform homeowners about a scheduled termite tenting too far in advance? Thank you, J.L. Aliso Viejo.

Dear B.C. and J.L.: In wood-framed attached housing, termite prevention can be critical to the building’s long-term structural stability. So, Civil Code Section 4785 empowers HOAs to compel the occupants of the homes to temporarily leave so termite treatment can occur. The residents and homeowners must be given written advance notice at least 15 days but not more than 30 days before the residents need to be out of the residence. The notice must state the reason for the temporary dislocation and the dates and times treatment will start and is expected to end. The residents are responsible for their own temporary housing. If the HOA delivers the notice to the occupants and owners, the HOA can “summarily” remove the occupant (meaning, obtain a court order to that effect).

The HOA is trying to care for your property investment, which action while temporarily inconvenient should be in everyone’s best long-term interests.

Sincerely, Kelly

By CAMICB Executive Director, Matthew Green, CAE

Each year, Community Associations Institute (CAI) and the Community Association Managers International Certification Board (CAMICB) exhibit at the National Conference of State Legislatures Legislative Summit. NCSL serves legislators and legislative staff throughout the United States, and its annual Summit brings together participants from all 50 states and U.S. territories for education, bipartisan dialogue, and an exchange of ideas about the issues confronting state governments.

For CAI and CAMICB, the Summit provides an important opportunity to engage directly with state legislators and legislative staff. CAI can help policymakers better understand the benefits of community associations and the resources available to the people who live and work in them. CAMICB can highlight the value of professional community association management—particularly the importance of choosing managers who have demonstrated their knowledge and competence through certification.

Those are the reasons we attend. What can be surprising, however, is how quickly conversations move beyond formal legislative roles.

Many legislators and legislative staff members are themselves homeowners in community associations. They may serve on a board, have questions about the management of their own community, or simply want to better understand how community associations operate. These conversations allow us to connect public policy with the everyday experiences of the people who live in these communities.

They also provide an opportunity to offer a broader perspective. Legislative discussions involving community associations can understandably be influenced by constituents who have experienced a problem or feel strongly about a particular issue. Those concerns deserve to be heard. At the same time, it is important for policymakers to understand the larger picture: community associations are home to millions of Americans, and effective governance and professional management contribute to the stability, maintenance, and overall well-being of those communities.

The Summit also gives CAI an opportunity to introduce legislators and staff to its information, education, and membership resources. For CAMICB, it provides a setting to explain why professional certification matters and how the CMCA credential helps homeowners and association boards identify managers who have met established standards of knowledge and professional conduct.

Beyond our own field, the Summit offers something equally valuable: perspective. Its broad program exposes us to the many competing issues state legislators must address and helps us understand where community association matters fit within a much larger public-policy environment. We also value the chance to meet representatives from other professional and credentialing organizations, including programs accredited by the National Commission for Certifying Agencies, and to learn how others are approaching certification, accreditation, and public protection.

Ultimately, the NCSL Legislative Summit allows us to step outside the community association world while helping others better understand it. The conversations may begin with legislation, but they frequently become conversations among homeowners—and that is often where the most meaningful connections are made.

By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Mr. Richardson: Can our HOA board unilaterally write off borrowing from the reserve account as a bad debt? After the write-off can the board then declare another loan from the reserve account? D. A., San Diego 

Dear D.A.: Civil Code Section 5515 authorizes TEMPORARY borrowing from the HOA reserve fund if certain required notifications are made to the membership. However, that money must be repaid within one year of the borrowing per Section 5515(d). If at the end of that year the HOA needs a TEMPORARY delay in repayment, Section 5515(d) allows a delay in repayment but requires a board issue a written “finding” explaining the HOA’s need for more time. The statute doesn’t allow boards to simply “write off” such borrowing. Remember, while borrowing can be convenient to temporarily meet other HOA needs, until the reserve borrowing is repaid the HOA is in increased financial jeopardy because of that larger deficit in the reserve fund. Best, Kelly

Dear Kelly: How can homeowners protect themselves from mismanagement by the board and by the manager due to their incompetencies, negligence in failing to do the recommended yearly maintenance for the past several years, failure to fund our reserve account despite substantial HOA dues increases? S.S., Pasadena

Dear S.S.: Association boards who refuse to regularly set aside funds into the reserve account are driving their association into an unliquidated insolvency. It’s similar to someone living on credit cards for normal expenses – it’s convenient for a while, but can build to a very painful situation when the bill comes due.

HOAs lacking the discipline to accumulate funds to offset the ongoing deterioration of HOA common area elements will need major special assessments or long-term bank loans when those common area elements need replacement. Association members in condominium projects that are not properly funded will find it harder to obtain good mortgage loans. At some point, homebuyers may recognize that condominiums in underfunded associations could be worth less than their appraised value because traditional appraisals generally do not account for an HOA’s overall financial health.

If your board refuses to follow the law and refuses to prudently set aside funds in the reserve account and follow the HOA’s reserve study recommendations, perhaps the members should search for more disciplined volunteers to staff that board. Thanks, Kelly 

Dear Mr. Richardson: The management company without board approval used reserve funds for operating expenses – can the HOA board sue? J.M., Tustin

Dear J.M.: Civil Code Section 5510(b) prohibits boards from expending reserve funds except as necessary to fund repairs, restoration, replacement, or maintenance of common area components (or to fund litigation regarding those common area components). The statute does not mention managers, but that doesn’t mean that managers can expend HOA reserve funds on whatever they choose. Boards, not managers, make those decisions and managers should be carrying out the instructions of the board. The manager recommends, but the ultimate decision is the board’s to make. As to what happened in your HOA and whether there may need to be a claim, the board should discuss that with association legal counsel. Sincerely, Kelly

For the Davis-Stirling Act official site, visit www.leginfo.legislature.ca.gov, go to “California Law,” and scroll through the Civil Code. All other sites are unofficial (including www.hoahomefront.com).

HABITAT Magazine

Love it or loathe it, the pied-a-terre tax on pricey second homes is here to stay, and co-op and condo boards need to start making preparations now.

The Department of Finance (DOF) will send out notices no later than August 30 identifying apartments that meet the criteria for the surcharge, Brick Underground reports. During the law’s initial phase, that generally means non-primary residences with a market value roughly equivalent to $5 million or more.

The city will bill condo unit-owners directly. In co-ops, however, property taxes are a portion of the monthly maintenance, so co-op boards will have to establish a process for collecting the tax. Here are five questions co-op boards will need to answer:

What qualifies an apartment as a pied-a-terre, or non-primary residence? DOF will likely use the co-op and condo tax abatement to determine whether an apartment is a pied-à-terre. Since this abatement is a tax break for primary residents, it follows that a shareholder or unit-owner who is receiving the abatement is using the apartment as their primary residence and therefore the pied-à-terre tax would not apply.

Can the determination be challenged? Condo unit-owners and co-op shareholders can contest the determination that an apartment is a second home. A challenge needs to be made within 30 days from the notice date. 

If the tax is contested, DOF will have to use additional information to determine whether the apartment is a primary residence. This might include voter registration as well as New York state and city income tax returns. Challenges about apartment valuations are typically made through the NYC Tax Commission.

How does the law change over time? During the first phase of the law, the city is not using actual sale prices. Instead, it is relying on DOF’s existing market values for co-ops and condos, which are based on comparable rental buildings. A DOF market value of $1 million generally corresponds to a co-op or condo worth about $5 million on the open market — which would make the apartment liable for the PAT tax.

Beginning in 2028, the city will switch to using real-world market values for co-ops and condos. The tax will then apply only to units with a sales-based market value above $5 million. To do that, DOF will need to publish a separate tax assessment roll for co-ops and condos based on comparable sales rather than rental-based values.

How will co-ops collect the tax? The co-op board or managing agent will receive notices identifying which apartments are subject to the pied-à-terre tax, and they will then have to notify the affected shareholders. Since the board pays the property tax bill, it will be the board’s responsibility to recoup the tax from the non-resident shareholders. If shareholders fail to pay, there could be a range of other problems.

Stuart Saft, a partner at the law firm Holland & Knight and no fan of the PAT tax, offers this scenario in the firm’s newsletter: “If a shareholder refuses to pay the PAT Tax, the board must decide between two unappetizing options: The board can pay the surcharge out of building funds, effectively advancing the nonpaying shareholder’s PAT tax obligation from reserves that belong to all shareholders; or (it can) allow the surcharge to remain unpaid on the building’s property tax account, where interest begins compounding at 18% per annum against the entire building while the board pursues the shareholder…with no certainty of ever being reimbursed… Neither option is acceptable because both cause direct harm to innocent shareholders who have nothing to do with the non-primary unit.”

What should co-op boards do now to prepare? Co-op boards should prepare a schedule of the units and the number of shares in the corporation to identify which apartments are likely to exceed the $1 million threshold. The board can then begin communicating with any non-resident shareholders, letting them know what the surcharge will likely be so they can start planning and budgeting.

Martha Stark, a professor at the Robert F. Wagner Graduate School of Public Service at NYU and a former city finance commissioner, has developed a second home surcharge tool to help answer questions about whether the tax applies and what boards should do if there are uncertainties. 

Boards should also be prepared for an uptick in sublet requests. Apartments rented for a full-lease term are exempt from the pied-à-terre tax, provided the tenant uses the unit as his or her primary residence.

Gramercy Park, Manhattan

HABITAT Magazine

The Battle of Gramercy Park is finally over. The winner is the Gramercy Park Hotel while the loser is the co-op next door that sued, unsuccessfully, to retain access to the hotel’s rooftop.

While the rooftop war played out, the co-op at 50 Gramercy Park North succeeded in persuading a judge to stop construction work at the century-old hotel next door, which is under renovation and has been closed since 2020.

But that relief came to an end earlier this week when Manhattan Supreme Court Judge Anar Rathod Patel denied the co-op’s request for an injunction and overturned the stop-work order.

“To the extent that construction is being halted, there is no dispute that will cause delays or perhaps prevent the reopening of the hotel, which is a significant prejudice to the defendants,” Patel said from the bench after an hour-long hearing, Crain’s reports. “By contrast, there is not really any prejudice by the plaintiffs that has been established.”

This legal battle began when the 17-story, 21-unit co-op sued the hotel, claiming that the co-op’s “irrevocable and perpetual” right to the rooftop next door, atop the hotel, is being violated because an illegal members-only club is being built there “for guests of hotel operator’s choosing.” The court agreed to halt construction.

The hotel fired back by filing a counter-suit seeking $125 million in damages from the co-op. The hearing earlier this week allows halted construction to resume, signaling that the hotel has triumphed over the co-op.

In 2023 MCR Hotels bought the Gramercy Park Hotel’s ground lease and vowed to restore the splendor of the century-old hotel that closed in 2020. MCR secured a $150 million loan to renovate the building, and to sweeten relations with its new neighbors while work was underway, MCR offered to give 50 Gramercy Park North residents membership to the rooftop club, though they would have to pay for their own food and services.

A lawyer for the Gramercy Park Hotel, Vincent Pallaci, claimed that co-op residents have since been offered private space on the hotel’s third floor that is better than what they would have gotten on the rooftop. “The overall open space that they’re going to have access to is actually going to be nicer,” Pallaci said during the hearing.

The co-op’s residents can console themselves that sometimes you win even when you lose.

By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Dear Kelly: Our reserves are very very low – can the city or state take over our association? B.P., Huntington Beach

Dear B.P: If the HOA’s reserve account balance is very low, meaning it is far less than the reserve study indicates should currently be accumulated to offset the existing level of deterioration of common area elements, the HOA is in financial danger. When a major common area element fails (decks, roofs, ?), the HOA will be unable to pay for replacement, leaving the members only two options: A major special assessment or a long-term bank loan (if the HOA qualifies for loans). Such an HOA may also violate FHA/FNMA lending requirements, which presently require that 10% of the HOA’s annual budget go to reserve accumulation. [Note- That figure will increase to 15% in 2027.] Condominium homeowners will have difficulty obtaining or refinancing mortgages if the association does not qualify for FHA and FNMA loans. If an HOA falls into complete disarray, it is unlikely that the city, county, or state would take it over. However, if someone petitions the court, a judge could order the HOA into a receivership. In receiverships, a third party takes over running the HOA for an expensive hourly fee. You don’t want that! Sincerely, Kelly

Mr. Richardson, I have enjoyed reading your articles for many years, and I have often shared them with our management and board. Recently, some directors have discussed using reserve funds to offset the operating budget and lowering our funded reserve level. The primary focus appears to be holding dues flat. This approach does not seem realistic or financially responsible. What would be the effect of reducing reserve levels? N.C., Mission Viejo 

Dear N.C.: Reserve funds are specifically accumulated to offset the ongoing deterioration of HOA common area assets. If the HOA takes those funds and repurposes them, that is considered “borrowing” from reserves under Civil Code Section 5515. That borrowing must be repaid within one year, per Civil Code 5515((d). Boards skimping on reserve savings to artificially keep assessments low are not being truthful to their neighbor homeowners – because they are obscuring the fact that the HOA will not be ready for major replacement expenses. Thanks, Kelly

Kelly: What power does a board of directors have to implement a financial plan for the funding of the reserve account without approval of all the homeowners? B.W., Solana Beach. 

Dear B.W.: Budgeting, including complying with reserve study accumulation requirements, is one of the board’s basic responsibilities. For HOAs without properly funded reserve accounts, Civil Code 5550(b)(5) requires the HOA to have a funding plan to catch the HOA up on its reserve accumulation needs. The HOA’s shortfall on reserve accumulation funding must also be disclosed annually to members under Civil Code Section 5570 and 5300(b)(3). It is a board responsibility because it is too complicated to submit to a vote of the entire membership.

HOAs that do not set aside sufficient money to offset deterioration of HOA-maintained common area components are quietly falling into unliquidated debt. Such a debt becomes liquidated when the component must be replaced and the “bill comes due.” Unfortunately, unwise HOAs will not have the funds ready for that expense if they shortsightedly only focused on month-to-month expenses. Best, Kelly

By Anna Baluch for realtor.com

Living in a homeowners association has its perks—but it also comes with rules, fees, and, as we’ve seen time and again, disputes.

It’s become commonplace for residents to take to the internet to vent their frustrations, with trends like #HOAproblems, #HOAstories, and #HOAKarens gaining in volume on platforms like TikTok.

But while it might be tempting to share your frustrations on social platforms like Facebook, Nextdoor, or Reddit, doing so can cost you.

“Social media posts are out there for anyone to find. Since they’re usually monitored, what may feel like privately venting your frustrations can quickly turn into a public record that your HOA can and will use against you,” explains Edward Susolik, CEO and managing partner of Callahan & Blaine PC in Irvine, CA.

If you live in a home with an HOA, think twice before freely airing your grievances online. By understanding the implications involved, you can protect your finances, reputation, and sanity. 

Dangers of venting about your HOA

Speaking up about your HOA on social media carries three major risks:

Legal exposure 

Venting an opinion is fine, but as soon as it crosses over into false statements of fact about a specific board member or a community manager, it opens you up to a defamation lawsuit. 

“Board members are volunteers, and they respond the same way anyone would. Attack them publicly and they shift into defending themselves and the association, making the underlying problem harder to resolve,” says Erik Leland, real estate broker at Realty First in Lake Oswego, OR.

If you approach them with a problem you want solved, most boards will collaborate and figure out a way to work with you. 

“The same grievance can get two completely different outcomes depending on the approach,” Leland explains.

Governing documents

Some HOA covenants, conditions, and restrictions (CC&Rs) contain conduct or nondisparagement provisions with fine schedules attached. Unfortunately, you might not know these clauses exist until you receive a violation.

“The CC&Rs, in California HOAs, for example, include specific clauses, and violating them by making a social media post can be viewed as a breach of your governing documents. You could wind up with fines or face some other legal consequences,” explains Susolik. 

Impact on property values

When a community’s public face is full of complaints, every seller in that neighborhood pays for it, including the person posting. 

“Regardless of how valid your complaints are, choosing to lay them out online could cost everyone equity,” Leland explains. 

Susolik also points out that publicly documented HOA disputes that are visible on Nextdoor or other platforms may show up in a buyer’s due diligence and complicate a sale. 

“Some cases we’ve seen have resulted in huge retaliation enforcement from HOAs that cite every minor CC&R for the homeowner. If you get slapped with a lien for not paying HOA fines, it can make a mess of the title and either delay or destroy your home sale,” says Susolik.

What started as an argument on social media about your gripes with landscaping can bury things at the closing table.

How to raise concerns without crossing legal lines

When you have an issue with your HOA, take a constructive approach—instead of a confrontational one.

“If you must say anything on social media, only talk about documented facts and frame everything else as either a question or concern rather than an accusation, or it may very well come back to haunt you,” says Susolik.

It’s a good idea to put any concerns you have in writing and share them with the board so there’s a record. Show up to meetings, and request some time to explain your position. 

Don’t forget to read the minutes and the budget, because most disputes come from a misunderstanding of process—not bad faith. 

If you want to see a change in leadership, the bylaws spell out exactly how elections work. Organize neighbors and run for a spot to represent the community. 

“Even easier, there are lots of volunteer positions available if you want more of a voice. The homeowners who engage in positive ways inside the process generally get more favorable outcomes,” Leland adds.

By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Kelly: I’ve enjoyed and appreciated your articles in the paper. Wish more board members would read them and take your advice. Why do boards have closed sessions during our monthly meetings? What is it that the board members wish to hide? Owners should be able to address the board when matter(s) or issue(s) are discussed referencing our homes and properties. HOA closed meetings only are a cloak of secrets, that they do not wish the paid owners to hear or have knowledge of. The owners deserve to not be barred from any portion of the monthly meeting and be entitled to hear how the board & manager are spending our monies. J.H., Fullerton

Dear J.H.: There are certain matters, which if discussed openly, would harm either the HOA’s or a homeowner’s interests. So, Civil Code 4935 allows a very few specific topics to be discussed in closed session. In addition, the state Fair Housing regulations also require requests to accommodate a resident’s disability also be handled confidentially. J.H., I agree with you that boards should use closed session sparingly, and only in clear compliance with the statute. Unfortunately, some boards abuse closed session for convenience, which harms the board’s credibility and possibly opens those decisions to legal challenges. Thanks, Kelly

Mr. Richardson: A few years ago you said regarding Section 4935 of the Davis Stirling Act: “Many boards and even HOA attorneys overlook “formation,” and focus only on “contracts” and erroneously expand the use of closed session.” My interpretation is that a board in closed session may negotiate contract terms but the final approval be voted in an open board meeting. I think the phrase “formation of contracts” was intended to apply to contract negotiations and should not be interpreted to allow boards to avoid discussing actions in an open meeting. Regards, N.D., Palm Desert.

N.D.: Many lawyers, managers, and boards conveniently overlook the term “formation” and allow HOA boards to handle all contract-related matters in closed session. This does not comply with the few topics allowed to be discussed in closed session and builds mistrust in the board. The selection of a vendor should be in open session. The discussion of negotiation strategy, counter-offers, or legal discussion of the contract terms obviously must be in closed session to protect the HOA’s interests. I encourage boards to ask themselves “must this be in closed, or can it be in open session?” Sincerely, Kelly

Mr. Richardson: While attending a board meeting, our board stated that they were discussing committee members and committee chairs in executive session. They said it was acceptable to discuss committee members in executive session since they are “personnel.” Can boards view committee volunteers as personnel, thus allowing discussion in executive session? Thank you, R.G., Mission Viejo.

Dear R.G.: “Personnel” discussion that is allowed in closed sessions per Civil Code 4935(a), is the discussion of the HOA’s paid employees – people who receive paychecks from the HOA. Vendors and HOA volunteers are not “personnel” and so those discussions must be in open session.
 

Some boards try to justify their overuse of closed sessions by saying that their meetings are disorderly or too long – I say then improve your meetings!

Best, Kelly.

Davis-Stirling Act official site: www.leginfo.legislature.ca.gov. All others are unofficial.

By Anna Baluch for Realtor.com

Imagine you find the home of your dreams, only quickly find out that a hefty HOA fee is attached to it.

At first, you may be a bit bummed about the additional cost. You may even consider passing on an ideal property because of it.

But experts agree that HOA fees may actually be worth it, especially if the home is in a neighborhood you love and has the kind of amenities that you’ll actually use. 

“An HOA can keep a neighborhood nice while allowing its home prices to rise and making resale more desirable,” says Teri Smith, broker and real estate agent at Newport Properties in Mooresville, NC.

Still, it’s up to you to weigh the benefits of an HOA against the costs so you can ultimately decide whether the home is a good fit for you and your family. Here’s what you should consider.

The purpose of HOA fees

HOA fees are recurring charges homeowners pay to maintain shared spaces and amenities in a community. They’re common in condos, townhomes, and planned neighborhoods, which have become increasingly popular properties for first-time homebuyers and retirees alike, given their price points.

“Besides landscaping, security, and amenities like pools, HOA fees may cover building insurance for common areas, utilities, community management, legal or accounting costs, and reserve contributions for future repairs,” says Stephen Lockard, litigation attorney at J&Y Law in Los Angeles.

This can be especially appealing to those who prefer to let the onus of the exterior of their home be someone else’s problem. For example, your HOA fees will be funneled into a reserve, saved for repairs like roof replacements and siding refinishing.

Typical HOA fees

In most cases, HOA fees are paid monthly, but amounts can vary significantly. Modest communities or those with few amenities may charge a couple hundred dollars each month or less. Luxury high-rises or neighborhoods with extensive services, on the other hand, can cost thousands of dollars. 

“It really comes down to amenities, the level of service you receive, property values, and the age of the community,” explains Lockard.

According to Marcus Sturdivant, advisor, managing member and chief compliance officer at The ABC Squared² DBA All Bases Covered in Charlotte, NC, it’s a good idea to use the 1% rule, meaning your HOA fees should not exceed 1% of your home’s value. 

For example, if you’re buying a home for $450,000 you should pay no more than $4,500 per year or about $375 per month in HOA fees.

How to decide whether they’re worth it 

When considering a home in an HOA, experts recommend these considerations to determine if the fees (and property itself) are a good fit.

Understand what the fees cover

Request a copy of the HOA’s Covenants, Conditions, and Restrictions (CC&Rs) and find out what the HOA fees would pay for. 

“If they include utilities, maintenance, or insurance, they could offset other bills,” says Lockard. 

If most of the fees go toward the community pool and gym, ask yourself whether you’ll actually use these amenities. 

Compare the fees and assess potential increases

See how the HOA fees compare to similar properties nearby. You may even be able to check the history of fee increases by asking the seller or listing agent for records. Determine if the fees are fair and whether you feel comfortable with them rising.

“If HOA fees are unreasonably high, or the association raises fees too frequently, be careful. That could be a sign of overall poor financial management,” explains Lockard.

Do your research

Read the CC&Rs carefully and check out online reviews of the HOA. You can even talk to residents of the community to get firsthand perspectives. 

Your goal should be to understand how the association operates and how the rules are enforced. Are they strict and controlling or more relaxed and flexible?

“Make sure the HOA’s culture aligns with your unique lifestyle and preferences,” says Sturdivant.

UVA Darden Ideas To Action

Life is full of negotiations. At work, we negotiate contract terms and conditions, flex time and pay raises. At home, we negotiate where to go on vacation, what to order for dinner — and how much screen time is too much screen time.

Given how frequently we negotiate, it’s perhaps surprising that one of the most important skills of effective negotiation is often overlooked or undervalued: listening.

“The stereotype of a great negotiator is skewed,” says Allison Elias, an assistant professor at the University of Virginia’s Darden School of Business. “People tend to think the more competitive and selfish you are, the better you’ll do. What they overlook is that some of the most astute negotiators actually use listening as part of their competitive strategy.”

Elias teaches courses about communication and negotiation in Darden’s MBA and Executive MBA programs, as well as for executive education audiences. But over the years, she found there was little practical guidance on how to listen well in a negotiation.

Until now.

Her new technical note, “Listening: A Negotiator’s Playbook,” introduces a three-phase listening framework designed to make listening teachable and actionable. And it’s not confined to work or business settings — it can be applied to everyday life.

“We tell people in class to listen to the other person,” she says. “But how do you really do that well? What’s the purpose? And why should you care?”

The note, she adds, fills a gap in the curriculum. “Renewing my mediation certification recently really emphasized the importance of listening in conflict resolution. And in negotiation too, you cannot be a great negotiator without listening well.”

Elias will be teaching the note in her fourth-quarter elective, “Negotiation.”

Her goal is to get students to think about how intentional one needs to be as a listener.

“When we prepare for negotiation, a lot of times we tend to over-focus on our own interests, our own planning, what we’re going to say,” says Elias. “But there could also be real value in preparing to listen, and brainstorming questions to ask the other person to try to understand them better and really listening to their answers.”

Why Negotiators Need to Listen

“Listening is not just a nice thing to do,” says Elias. “It has cognitive and affective benefits.”

In other words, when you’re listening intently, you’re learning new information that can help create or claim value in the negotiation. Listening also engenders a positive feeling between the parties and helps with relationship-building. “The consequence is that the other person feels respected,” she says.

Yet often, listening is easier said than done. When asked to describe a good listener, most people jump instead to what makes someone a bad listener, says Elias. They point to traits such as interrupting, responding vaguely or illogically, being distracted and fidgeting.

Being a good listener means more than just avoiding these behaviors.

“High-quality listening requires psychological presence, cognitive attention and emotional responsiveness,” Elias says.

How to listen: A Three-Phase Framework

Phase One: Prepare to observe and absorb.

Elias says one of the biggest obstacles she encounters when she teaches negotiation is a lack of curiosity about the other person’s perspective and world view.

“A lot of times I see people rush through the negotiation too fast, and students will say, ‘If this were real, I would have spent more time on it’,” Elias explains. “But if you’re really trying to understand another person, you’re trying to talk to them at length and ask them a lot of questions.”

She adds, “Sometimes we take too narrow of a view of what would be relevant in the negotiation, only focusing on the main issues on the table. If you can develop a curiosity about the other person, you’re going to be a better listener and more expansive about what you’re considering in the negotiation.”

The first phase of the framework is understanding that gaining leverage in a negotiation can begin before any words are exchanged.

“Effective negotiators prepare well by doing their research,” Elias says. “As they gather information and reflect on what they know, they also embrace the fact that there is a lot that they do not know.”

The core aim of this phase is to create conditions for openness. And to do that, Elias says, you must center yourself to quiet powerful cognitive traps, including confirmation bias.

Skilled negotiators bring an authentic curiosity to the discussion. “Embrace what you do not know,” she adds.

Phase Two: Engage and Interpret Signals

This phase is about being present during the conversation and taking note of various signals, including the dynamics of who’s who in the room.

“As effective listeners enter into a conversation, they take note of nonverbal cues such as the physical positioning of others in the room and their emotional states,” says Elias. “These observations provide additional information, perhaps about what has unfolded previously, to guide a communication strategy.”

Negotiators can absorb valuable information from all of these signals.

Doing so requires listening beyond words, attending to emotions and group dynamics, mirroring and paraphrasing conversations, and asking open-ended questions.

Phase Three: Monitor the Agreement as Partners

Elias says that negotiation courses tend to focus mostly on securing an agreement and neglect what happens next.

“Listening should not end when agreement is reached,” she says.

On the contrary.

“A lot of where value is created is in the phase after an agreement is created,” Elias says. “During the implementation phase, you need to continue to have curiosity, flexibility and awareness of the other person because there might be ways you need to tweak the agreement, or things that you hadn’t thought of before that need to be considered.”

You should also broaden your audience as the implementation phase unfolds. “Additional stakeholders who were not parties during the negotiation might emerge as critical to a deal’s success,” she adds.

The key takeaway from this phase is to maintain contact with more parties and remain open to adjustments.

Talk Less. Listen Better.

While listening is one of the most powerful tools a negotiator can bring to the table, we can all benefit from being good listeners. That means listening carefully and purposefully to other people.

Professor Allison Elias is author of the new technical note, “Listening: A Negotiator’s Playbook,” published by Darden Business Publishing (December 2025).