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What can our condo association's board do to collect condo fees?

Posted on Tue, Oct 06, 2009 @ 09:53 PM

What rights does a Condo Association or HOA have with regards to the collection of condo fees and fines against a unit owner. The money owned was in direct result of violation of rules and regulations of the association bylaws.
What can our condo do to collect these fines - use a collection agency or a lawyer?  Can and how do we place a lien against his condo unit? 

Your thoughts are greatly appreciated.

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instead of filing a lien on the property. Go to small claims court. That way you get your money. The homeowner has to answer to the court within 30 days here in So. Carolina. Tax lien they will never pay til the home is sold. they may never sell.

posted @ Wednesday, October 07, 2009 8:37 AM by Judith

An association lien may be an option depending on your state law. 
Small claims is another option. Although there even though you may get a judgment in your favor, you might still be left asking "how do we collect on the judgment?" and again end up back at a lien. 
Collection agency is an option to look into too. You'll be paying them a %, but then someone else will do the work to collect.

posted @ Wednesday, October 07, 2009 7:28 PM by MAJ

The rights you have are really based a lot on local law (I'm a Georgia attorney, so my knowledge is really based on Georgia law). As much as it sounds like a cop out, where you are and what's in your documents makes a difference as to the best answer for your HOA. Here in Georgia going to small claims court is very effective because of the post-judgment collections you can do (garnishing wages, etc.), but the expense is prohibitive until the amount in arrears is big enough. I would use an attorney (but as you see I'm biased) as they will know the ins and outs of the local law. Ask them for some REASONABLE advice as to what steps the HOA should take. Look for someone with HOA experience and don't be afraid to shop attorneys to find the best fit for the association. that means not just experience adn reputation, but includes their personality and approach to giving advice.

posted @ Wednesday, October 14, 2009 11:34 AM by Amy Bray

Consider a fixed fee debt recovery agency; If they do calls, letters, report to all three credit bureaus, and guarentee their performance.

posted @ Monday, December 07, 2009 4:21 PM by Joseph

We had to file in Small Claims Court due to the fact the unit owner is 5 months behind in dues of $60.00 a month. We sent letters every month to their door. The Treasurer did not receive any phone calls to make arrangements for payment at any time early in the behind payments. We sent a letter stating we would file and gave them two weeks to come up with the $350 due the HOA. No answer from them again. So I gave a final letter I handed the unit owner along with a Manual of all the important information including bylaw & docs and made them sign for the book. I just took over as President 5/1/09. The letter stated that we would file in 2 days at 10:30am if they did not put their check in the Treasurers mail box. We did not get payment nor a call. So the Treasurer and I filed at 10:30am. We get a message left on the Treasurers phone that they would pay half Friday and half the following month. The Treasurer left a message on her phone that we did not hear from them nor receive a payment so we filed. That it would be an additional $80 for filing. She left an absolutely nasty message on his phone saying they refused to pay the $80 filing fee and be sure to tell me they will counter sue. Needless to say these are my next door neighbors, their exterior yard and cedar siding is so awful I could not sell my home three years ago. The past presidents, sent two letters in five years and NEVER followed up to get them to fix their home. So taking over as the President of our HOA I am the bad guy. I am trying to get our homes kept up for value for when the market does turn around it will be possible to sell if one wants to. This was suppose to be my retirement condo on the golf course. Two homes are up for sale and it has been said by people looking at the units - "what's up with that unit?" We had a past president who did what he wanted on his unit across the pond from our cul de sac. So I have a mess to clean up. I did see an HOA attorney and he suggested we start small - everyone getting letters to clean up their yards. So far I have that have not done so. This is going to be a battle and I know I will have to get this attorney involved due to poor running the HOA in the past. I am a licensed property manager, so I do follow rules and I lead in example with my home.

posted @ Monday, December 07, 2009 7:19 PM by Judith Kennedy

My problem is a commercial office condo association. One of the unit owners has not paid fees to around $8000. I filed a lien against their property. Not sure if this was the poper thing to do. Maybe should have gotten a judgement first. Does anyone know if we should release the lien and seek a judgement in small claims court and then file a lien. Can't get blood out of a turnip, this owner's unit is almost empty. Can we collect through their rent they are collecting. We're trying to avoid involving a lawyer and the court system, the magistrate court is not very helpful (our tax dollars at work). We're in Georgia. Any insight or suggestions.

posted @ Tuesday, December 29, 2009 7:32 PM by Jo Stone

Jo Stone, I think you headed down the right path, depending upon what your documents say (and how your lien was worded). I'm also in Georgia -- feel free to contact me to discuss whether it would be worth it to get an attorney or to investigate using a collection agency to help. Sometimes it helps and sometimes the costs aren't worth it -- as you said, you can't get blood from a turnip!

posted @ Wednesday, December 30, 2009 6:52 AM by Amy Bray

Our HOA has first lien rights. Problem: with new banking regulations I now cannot refinance my home. No bank or mortgage institution will touch a loan under theses circumstances. The Board refuses to rework the language in any way as they are trying to get a large loan to rebuild our private bridge. 
Cost to me: a refinance would let me roll in the cost of my new septic into my mortgage. With the lower rates I could do this and save $150. However, now I lose that opportunity entirely.

posted @ Wednesday, April 14, 2010 10:07 PM by Marilee

May I suggest get an attorney in your state that specializes in HOA law. We are the small condo townhome units that filed in small claims court for our 9 months behind hoa fees of $60 a month. With a great SC HOA lawyer. The unit owner counter sued the Association on a stupid reason to stall his court hearing. I went to the RMC and got all the documentation showing his counter suit was not valid. We spent $750 attorney fees. Time came to go in to the magistrate court and we settled out in the hallway for our $715 fees due plus the $750 attorney fees. They paid up without going into the court room. BUT today is the 14th and they did not pay their April HOA fees. My Treasurer has called twice and no return phone calls. They are the only unit owner that is always behind. Guess they did not learn their lessons.. Two of us are going to the door over the weekend and demand our HOA money, so we don't get behind with this unit owner again. Also, guess what? he is a real estate attorney.... How stupid can he be....We will go after them again - if they can't afford it they need to sell, go or whatever....

posted @ Wednesday, April 14, 2010 11:04 PM by Judith

What happens if the HOA refuses payment? We were delinquent but paid in full. We paid the HOA but we guess the lawyers wanted their money first. Now our account is locked and we have sent payments and they have been returned. Now we are delinquent again because of refusal of payment and late fees.

posted @ Wednesday, March 09, 2011 4:11 PM by Bob

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