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Can HOA put lien on condo units that are not delinquent?

  
  
  
  
  

Can an HOA put a lien on condo if the owners do not own any back fees? We have a person who likes working on their own cars. This is against HOA ccrs. We have sent them several letters including a cease and desist from our lawyers. They claimed to not be braking any laws. Do we first have to fine them then put a lien? Or can we only put a lien on if they owe something? Say we fine them, they pay the fine and they keep working on cars? what is our recourse? Thanks

Comments

No.
Posted @ Sunday, September 11, 2011 7:57 AM by Dead Eye Dick
Does this condo owner have parts all over and it is making the condo look like a junk yard? We had a board who fined everyone and the association never received the fine money. Some of our board members' passion was to extort money by giving excessive large fines and keeping the money divided among the evil people involved. I am so sick of people on the board who are probably the most unethical people alive looking for reasons to fine their neighbors. Do you live in a million dollar condo because I find it disgusting to have a human being trying to find a reason to fine someone and put a lien on his condo. Possibly the board members who are thinking this way should volunteer at a soup kitchen and get rewarded in life for their good behavior rather than hurt some guy who may get self worth from fixing his own car. I live in a condo where there is a lot of corruption and I find those who want to fine are the ones who have caused the corruption extorting money from other condo owners by giving out large fines and keeping the money plus even replacing items that didn't need replacing only to profit from the cost. Let rewards come to those board members who are not narrow minded and give some room for people to do what they love, maybe that person will help you out with your car someday. Our board was so into giving out fines that they allowed the most horrible property manager who is married to the owner of the management company have a lien put on a deceased person's condo because the school teacher didn't replace her light bulb after she passed away and before her condo was sold and this information was volunteered by the property manager herself when we asked if Carol's condo sold. This evil PM went to the closing of the school teacher's condo with a lien made up by the evil condo attorney and collected close to $4,000 from the school teacher's estate cheating her 2 sons out of $4,000 which was never given to the association but kept by the evil corrupt property manager, board members involved and the condo attorney.  
 
Posted @ Sunday, September 11, 2011 8:59 AM by Chilly
I totally agree with you chilly. People need to mind their own business. If this person is not running a car repair shop and is just maintaining his own vehicle, why do they care? ... 
 
Because complainers have nothing else better do in their pathetic lives then to bother their neighbors. Just like the idiots who are complaining when someone plants flowers. By-laws are not set in stone and can be amended. Why does every neighborhhod have a "Mrs Kravitz" who has nothing better to do than bother their neighbors and want to take every rule to heart.
Posted @ Sunday, September 11, 2011 10:08 AM by ds
Chilly sounds quite paranoid. Evil attorneys, extortion, and so on. I feel sorry for the Association he or she lives in. I think that Chilly and ds would do best living in the wilderness where rules and law don't exist.
Posted @ Sunday, September 11, 2011 10:34 AM by Casey
If it is against your CC&Rs, fine the owner (a reasonable, Board approved amount) and hire an attorney to collect (at the offender's expense) if the owner doesn't pay!
Posted @ Sunday, September 11, 2011 10:50 AM by LLH
A lien is for money owed, so I do not understand why you think you could place a lien when no money is owed. A lien can be placed for unpaid fines, but from what you have stated it appears that no fines were issued, therefore no money owed and no lien.  
 
Typically when a homeowner violates the governing documents of the Association, the owner is issued a warning letter that (1) states the nature of the violation, (2) is offered the opportunity for a hearing to discuss the matter / defend himself or herself, and (3) is informed of the Association's fine schedule so that the owner knows the penalties for future violations. These fines are not meant as a get rich scheme for the Association, but rather as a way to "encourage" people to comply with the governing documents.  
 
There are those who don't the restrictions placed on them by those documents, and in that I agree with Casey who stated that some people are best living in areas where rules do not so dictate behavior as they do in condominiums. But it is important to keep in mind that Association rules are no different than local laws that do not allow murder, rape, robbery and so on, and which require that we pay taxes, etc.
Posted @ Sunday, September 11, 2011 11:13 AM by Lynn
In CT, our state condo laws and condo declarations require an Association to Notify the unit owner that he's violating a specific rule of the Assoc. and the hold a Hearing conducted by the executive board at which time the alleged violated comes before the board prepared to answer the charge and prepared to show why he's not violating that particular rule. The violater can bring documents and witnesses to support his side - and the Board show also be prepared to show the violator why he IS breaking the rule(s). 
 
The required process is called "Notice and Hearing."  
 
After the Hearing the board may decide to impose a fine (the declaration and bylaws specify the parameters of the fine that can be imposed) or the Board may decide the guy is right or the Board may decide to give him a break if he says he won't do it anymore. Whatever. 
 
The important point I want to make is that if the Board fines him and he doesn't pay, that fine becomes an automatic statutory lien on the guy's unit. So once the fine is past due, the Association can begin a foreclosure on the guy's unit based on that lien, which in CT is a PRIORITY lien, given preference ahead of the first mortgagee. 
 
If your state doesn't have that statutory lien process, the Association can try to collet the unpaid fine in small claims court, and once you get a judgment there, the Assoc. can attach his property (like a car or his unit) in accordance with law  
 
Posted @ Sunday, September 11, 2011 11:20 AM by George Cameron, Farmington, CT
While I sympathize with what you're saying, I am wondering what the CC&R's say regarding fines. Is your board acting according to its rules? What you are asking I'm sure will be in your CC&R's! Most associations have the ability to fine infractions, and they are usually fair and relatively small. Ususally leins can only be placed when there is a large debt owed in fines, or non payment of fees, of which CC&R's spell out the conditions. Our CC&R's say fines must be imposed first, then the lein option can be applied. 
 
 
 
As per other comments here, while I understand too that it may seem picky to some to impose those fines, remember to others it may seem perfectly ok in order to keep their complex in good and attractive order. 
 
 
 
Remember when boards impose fines it is most likely according to those rules you and everyone else agreed to when you purchased there. Rules are rules, and it is, whether you agree or not, the responsibility of the board to make sure those rules are adhered to. They cannot pick or choose which rules they want to inforce, otherwise they can be accused of being prejudice, and favortism, which can end up in court. 
 
 
 
Also remember while collecting fines, that money should be going to help off set costs of maintaining your complex, and sometimes will help in keeping your association fees from increasing. 
 
 
 
If you feel any of their practices unjust, I suggest you go to meetings, involve yourself by getting on the board, and most of all know your CC&R's and rules and regulations well. You are aware that rules can be changed aren't you? If others feel as you do then go to work and change things. 
 
 
 
While serving on a board myself we had some of the same complaints from owners, as if we were acting unfairly. It was simply their lack of understanding of what our CC&R's spelled out. We managed to keep association fees down year after year, until those in protest who thought they knew better, took over the board. Fees have risen every year since they took over, and the overall condition of the complex compromised by lack of inforcement of those rules. Decks are piled with owners unattractive things, dogs allowed to pee on common area, which is full of stained grass now, and motorcycles parked on common area. So think about what you are complaining about!
Posted @ Sunday, September 11, 2011 11:24 AM by Jackie
Liens on properties are recorded as a collection mechanism. What it does it send a message to other (future) lenders that there is an unpaid debt associated with this property. If an owners tries to sell the property or refinance the new lender will force him to pay off the debt before giving a loan. This is done so their new loan is recorded as a senior loan and gives them the most seniority to collect. 
 
If there is no financial debt you can't record a lien because there is not to pay off. 
 
If this person violates CC&Rs you can follow a process outlined by your governing documents and your state's statue to issue a fine(s). If those fines are not paid on time and become delinquent you'll may some recourse by filing a lien or even proceeding with a foreclosure. 
 
I would highly recommend you consult with an attorney before doing any of these. Depending on your state law your options may vary. For example in California you cannot foreclose a property because of fines, but you can still have a lien recorded. In many places those delinquent amounts have to be above a certain threshold before you can do any of these. 
 
With all of that said I want to urge you to think about this 'violation' before doing anything. While I understand that it might be a direct violation for your CC&Rs you should think about the real 'damage' that his violation does to your community. 
 
Is this a community of private houses and the person does it in his own garage/driveway? Is this a condo complex and the work is done in a common garage? Is it done on a private street owned by an HOA? 
 
Is this person running a car repair show on his property? Is it his hobby to work on restoring cars? Is he fixing his own car? 
 
Answers to all of these questions may steer you in a correct direction? 
 
Your board has a duty to enforce CC&Rs but it also has a duty to do what's right for all members of the association. Sometimes it means reviewing restriction and updating them to fit with your current needs. 
 
Is your effort to enforce this based on a true needs of the community or is this simply an opportunity to enforce a letter of the law without giving a second thought or is this power trip of your board?
Posted @ Sunday, September 11, 2011 11:38 AM by Jeff Ross
Check your Association bylaws and the condo laws in your state regarding the powers of your Board. They may have sections which allow your Board of Managers the authority to place fines on owners who do not follow the bylaws or state mandates. If those fines are not paid then yes the Association can file a lien against your property because you owe them money. You also need to research how your State and bylaws regulate the posting of payments to your account. In Ohio, for example the priority posting in order is: 1. % of interest owed to the Association on the balance, 2. late fees, 3. collection costs and attorney fees, and lastly 4. the principal amount owed by the owner including any penalty assessments against the unit. 
 
Many people move into a condo and just thnk about the ease of not having to do maintenance, and then they forget that they only own the unit "walls in" and they have to get approval from the Board for just about everything else. Unfortunately, if owners would follow the bylaws and other property guidelines their Association would not have to impose fines, let alone file a lien. Most states have a set procedure on how enforcement fines are levied and the steps you must take before charging the owner. They must have an opportunity to "cure" the issue before you can fine them, and in most cases once they know that they are breaking a rule they will stop.
Posted @ Sunday, September 11, 2011 12:45 PM by Kathy
What a shame it is to hear another one of these stories. First of all, the Board levies all fines and the management company takes direction from the Board. When this very basic understanding gets overlooked, the association gets loses. The montly statements and minutes should be reviewed for clarification. Then all paries should be put on notice.
Posted @ Sunday, September 11, 2011 1:04 PM by David J. Murphy, LCAM
The Board is not involved in a conspiracy against the Owners. They are elected by the Owners and serve for a short term It would probably be beneficial to you (considering your complaints), to begin attending meetings. In this forum you should be able to address your complaints.  
 
Your Board seems to be on top of things. ourse you Board seems to have is to file suit. Usually, once tfhe person in question has a sheriff knocking
Posted @ Sunday, September 11, 2011 9:46 PM by niki
Chilly seems to have it in for board members. I can only wonder if he every ran for the board or does he just let other people do it while he complains? Don't criticize the board until you've walked a mile in a board member's shoes. If you're not part of the solution, you're part of the problem. 
 
 
 
Posted @ Sunday, September 11, 2011 11:59 PM by Louise
We have rules that state that you aren't even allowed to wash a car in the parking lot. You can do anything you want in the city street and then it's up to the police if you make a mess. Believe me a resident will call if there is a mess left!  
 
Our management company bills for and collects all the funds and depositis them. The Board doesn't have anything to do with the money. 
 
It seems there has to be money owed to put a lien on property, at least in NY.
Posted @ Monday, September 12, 2011 2:43 PM by linda
This to Linda... This is what we get from owners who do not look into and research the why of certain laws/rules. Our association also has a rule against washing cars on the property. There are REASONS for rules... The city here does not allow it because of the unsafe chemicals being washed down our sewers. Not everyone uses biodegradeable soap. Also, there is water conservation involved and washing your car uses a lot of water. Car washes use recycled water. Now think about this, if your complex does not allow solutions being washed into, eventually, the oceans, a pretty good guess is that it comes from your city laws. Complex waste and city waste all go to the same place!!
Posted @ Monday, September 12, 2011 7:44 PM by Jackie
Who bears the burden of proof that dues are paid on time. I was billed a late fee of $10.00 for August. I gave them the benefit of the doubt since the 15th fell on a Sunday and the post office was not open when I  
put it in the box. However, I mail the September bill at least 5 days or more prior to the 15th and they gave me an additional $10.00 late fee. Our property manager lives down the street but does not have an official office & works out of her how. Can they bill us a late fee if they do not have an office we can walk into to insure payment is on time? Is that legal
Posted @ Tuesday, September 27, 2011 10:39 AM by ME in California HOA
Yes it's legal. They don't have to have an office. Your check needs to be received by the due date, not mailed by that date. It would be your responsibility to ensure that whatever holidays/day off are accounted for.
Posted @ Tuesday, September 27, 2011 10:43 AM by Jeff Ross
I'm an attorney and I tell you how the legal world tends to handle such things. 
 
It's the mailing date, i.e, the postmark date that takes precedence in making and applying rules like this. 
 
If the due date is the 15th, it should be judged by the postmark date, not by an anticipated date of receipt. 
 
Things are just simpler using a postmark date. In the legal world, proof of mailing something by regular mail constitutes the receipt of something (the USPS is trusted to guarantee delivery). 
 
I would also add that if the due date falls on a date the post office is closed, the following day should become the due date. 
 
Using a postmark date is the way to simplify and to resolve disputes.
Posted @ Tuesday, September 27, 2011 11:05 AM by George Cameron Farmington, CT
You may be right about when your check should have reached the HOA, but it's very hard to prove without documentation. The best thing you can do to avoid this in the future is to send your check by certified mail, return receipt requested. That will give you documentation as to the date you mailed it, when the HOA was notified that there was a certified letter waiting for them (if they didn't sign for it right away) and when they signed for it. It will also show if they refused the letter. This would give you a legal leg to stand on if they claimed you didn't pay on time. If I were you I'd use certified mail every time I sent in an HOA check. As added insurance, you could have your check certified at the bank which will show that there are funds to cover it. The funds are then set aside to cover the amount of the check. Or you can send a bank or postal money order.
Posted @ Tuesday, September 27, 2011 9:17 PM by Louise
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