Check your documents and with your HOA attorney. Your condo HOA should have filed a lien against the delinquent owner so that these funds could be collected at closing on behalf of the HOA. Those funds would be paid into the general fund of the HOA, not to an individual "paying" owner.
You seem to be bitter that the owner is paying his fees on time and what is owed.
I feel sort of cheated when I pay and my neighbor does not.
yes, people who do not want to pay for their use of hoa areas and such, need to be noted as dead beats - there are no free rides even in this time of hard ship. I do understand people that are behind on payments have a reason and should not be held in the same way a person who will not pay at all and will not even try to put in a payment plan to the hoa - those everyone wants to own a piece of the pie like real estate, not all people should - that was a GW bush and congress pill -- liens and then forclosers are the way to handle it on non payers
To anser your question, I doubt very much that you have any claims on funds from sold properties. However, your association has every legal right to collect past dues. Barring bancrupcy by the delinquent ex owner your association can use small claims court, collection agency or any means necessary to collect past dues. Our attorney will attach paychecks of former owners if necessary. Most states havevery strong laws to help associiations collect past dues. Educate your association and get yourselves a good attorney.
Your action options are with your BOD, any property manager.
You can complain to the BOD and possible vote them out if they are failing in the fiduciary duty. Only very willful and egregious fraud is actionable by litigation.
Stupidity and bad management decisions, including bad collections policies are only actionable via persuasion of the board or replacing them.
NO. In Florida we get really blasted by the State's Safe Harbor Law protecting the Banks at the expense of us little guys. No one likes paying for the Dead Beat, but they are protected by Law in most states. I was able to take away their ID card, Laundry privileges, Pool privileges, Clubhouse privileges. But Comcast would not shut down their shared cable. I could spin my wheels and money and foreclose to get them out, and rent the place out to try and recoup. But that's it. What a country. Immigrants especially are learning how to abuse the system and living rent free in my neck. None of us expect this when we buy into a Condo.
After they leave, maybe you can do this to recoup fees:
Hundreds of homeowners and condo associations are foreclosing on banks that have failed to pay dues and other expenses on the properties they've repossessed.
The correct answer, as many have stated, is NO.
It is up to your HOA Board of Directors in conjunction with your Community Management Company, assuming you have one, to pursue collections for delinquent assessments to the extent of the laws of your state and your HOA governing documents.
Once the owner files for bankruptcy at some point early in the process, your HOA nor their attorneys can any further contact with the owner. It's the law. Consequently, your HOA's claim will be in limbo for the duration.
All this is true for any HOA, it just impacts condo HOAs more.
In the early expansion of home ownership, all (almost) owners expected to pay their bills on time or sometimes just a little late - but never to refuse to pay or be unable to pay. This expectation was the standard and condo and hoa assessment collection was not anticipated to be a problem. Therefore, the structure for collections was limited to the lien process.
Today, all boards and associations struggle with the "accepted" mentality that assessment payment for many is an afterthought. The legislative procedures have not kept up with the challenge. Many boards have no good recourse to deal with several long-term deadbeats. Liens go away when boards lack the funds necessary to obtain judgements on these individuals. Master meters for gas, water, electricity provide limited options for enforcing payment by owners.
Paying owners can encourage the board to increase the budgeted expense for more legal representation - as long as other expenses are funded. In working with boards, I find that they are limited in financial resources for additional legal actions which might be helpful.
This past week a board discussed an investor owner with delinquent account of $14,000. Yes they have liens on the account. The owner has mortgages on each unit that preclude the condo from completing the foreclosure process.
In some states, the timeframe for the lien is limited and without further action it expires. Owners need to learn this information and then work to increase the lien "life" to at least 10-12 years. Here in Maryland, two counties have recently passed local legislation that will assist associations in forcing investor owners to obtain AND maintain rental licenses if there are any liens on the property for assessment collection.
This may be one major step that will help associations. The legislation is new and results are not yet available.
No! The reason is when people go behind there probably is a good reason. If your association or HOA self manage you should be putting liens on the owners along with proper tracking of their fees and late fees the assoc or HOA will get this all back when and if they decided to sell or pass away. Now if they go Bankrupt then you have a problem. We are in that phase right now with 2 owners and it it a crying shame that others are left out of the loop when that happens.
The best thing for you to do is cross your fingers and hope it does not come to that.
We recovered a large sum when one owner sold out. But you better hope a sucker comes along and buys them out.
The laws have changed to bad in today's market that it makes it difficult to sell, cause they will always look at delinquent condo owners as a bad risk
Hang in there and hope for the best.
We have a procedure that works 50% of the Time, a form letter- a lean-small claims. Have had forecloses, on that it takes 18 months -24 to get a bank to work with you if your lucky. Banks in Iowa don't push a closure, guess it a write off. Then you any end up with only a part of what is owed Our State stinks, when it comes to helping Condo. Associations !!
You might have been better off structuring any extra payments you made to the HOA that were not your own dues responsibilities a loan, in which case the HOA would have had an obligation to reimburse you. If the payments were well documented, maybe the BOD will work with you to make you whole. Putting a lien on the common areas could be possible if your extra payments were somehow identified or accounted for in a way that gives you a right to seek reimbursement. Good Luck.
You are up a creek without a paddle. If your state is as liberal as the state of Washington the courts will favor the delinquent homeowner (because they feel sorry for them) and treat the association reserves as evil landlords with a cash cow reserve. Our board has had to write off thousands of dollars over the past 5 years in bad debt and spend a huge amount on legal fees. It takes over two years to root out the rats (the ones that are masters at abusing the process). In the meantime our condos have devalued by almost half of their original value. We must continue to provide cable tv, water, and gas. There is no hope in the foreseeable future.