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Should small two-unit condo association abolish condo fees?

Posted on Fri, Dec 17, 2010 @ 07:53 AM
  
  
  
  
  
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We just bought a condo in Wisconsin 2 months ago. The condo association comprises of just two units: ours and the couple next door. Our neighbors moved in in June. According to the by-laws there is a $40 per month maintenance fee that is to be used for the building insurance and repairs, etc. We do not enlist any outside service for lawns or snow clearance. Our neighbor and ourselves do not wish to continue paying the fee. Its simply a nuisance. But, the county register of deeds insist we must have a real estate lawyer submit a change of the by-laws to the register. Can this be correct? Why must a lawyer be involved? Also, if we as the condo association decides not to pay the fee anymore then who cares? Down the road if we or our neighbors were to sell would a potential buyer really care about how much should be in the reserve fund? Couldn't we just claim it was required for maintenance and repairs. Appreciate your answers as this is my first time in a condo situation. thanks Dale
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Comments

Dale, 
 
It would seam to make sense that you can stop paying condo fees. We work with small condo like yourself that do not pay fees. They simply pay expenses as they are incurred. I guess it is based on state law.  
 
As mentioned, we work with similar condo's helping them effectively manage their condo's. Our solution is free and provides an easy-to-use property website. Happy to talk more if interested (placeforce.com) 
 
Nate 
Posted @ Friday, December 17, 2010 8:05 AM by Nate
No you should not abolish the fee. When your neighbors move out in ten years, they have used 10 years of the effective life of the roof and other common elements. The new owner should not bear 100% of that responsibility. The $40 a month should be covering current operating expenses and reserve for for future capital expenditures.  
 
 
 
There are a whole host of other legal reasons as well. Neghbor loses his job and can't refuses to help pay for the insurance, etc. Now you are going to have to sue for some amount, where as failure to pay dues in most states allow for foreclosure actions.
Posted @ Friday, December 17, 2010 8:06 AM by Ron
pay the fees. 
 
of course a buyer would care what was in the reserve fund! in fact, lots of banks are now asking a well, and denying mortgages based on condos not having enough in their reserve funds. 
 
also agreed with the previous poster - you can place a lien of common charges and move to foreclose if your neighbor decides to stiff you on an assessment for an unexpected expense. I live in a 3 unit condo, and one owner has stopped paying. We had an unexpected expense that we assessed her for, and she just didn't pay. We have placed a lien on the property and are considering foreclosure. Please - go by the book! Pay the charges and build up the fund. Is $40 a month really worth the pontential headache when unexpected situations arise? And they will, trust me!!
Posted @ Friday, December 17, 2010 8:36 AM by babe125
Suggest you download a copy of your state's condominium act. I think you'll find the law will prevent your proposed action. Maybe you should consider reorganizing into some other form of joint ownership than being a condominium???
Posted @ Friday, December 17, 2010 9:25 AM by Charles Adler
I appreciate the responses and will have a re-think on the issue. Perhaps it would be prudent to maintain and add to a reserve fund because (as pointed out) you never know what may happen.
Posted @ Friday, December 17, 2010 11:39 AM by Dale
Download and read your state condominium act. You may find that you violate the law if you don't have a reserve fund.
Posted @ Friday, December 17, 2010 1:06 PM by Charles Adler
May states have aprovision in thier condo laaw to terminate a condo association. I would love to see it happen here. If such a law exists, follow it either with or without a lawyer to terminate the association.
Posted @ Friday, December 17, 2010 1:21 PM by CONDO HATER
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