For more than three years I have been been trying very hard to find out - without success - where my Condo's surplus net income goes each year. It appears to me that it just disappears into thin air, and that bothers me.
However, it it has occurred to me that it can be prevented by returning it to unit owners. And apparently it can be according to our Condo's bylaws 1.) and the Maryland Condominium Act , 2.), where they say:
1. Condo Bylaw: "Any amount accumulated in excess of the amount required for actual expenses and reserves and any Common Profits shall, in the discretion of the Board of Directors, either be returned to the Unit Owners in accordance with each Owner's Percentage interest in Common Expenses and Common Profits or be credited according to each unit Owner's Percentage Interest in Common Expenses and Common Profits to the next monthly installments due from Unit Owners under the current fiscal year's budget, until exhausted, or be used for any other purpose as the Board of Directors decides, provided such use is for the benefit of the Condominium and the Council or the Unit Owners."
2. Maryland Condominium Act: "All common profits shall be disbursed to the unit owners, be credited to their assessments in proportion to their percentage interests in common profits and common expenses, or be used for any other purpose as the council of unit owners decides."
Please note: In 1.) Our Condo bylaw says the Board of Directors has discretion to make the choice, but in the case of the Maryland Condominium Act it is the Council of unit owners who decides.
Two very important questions are: "Which one rules?" and "Which one benefits the Condominium and the Council of unit owners the most?"
Please also note: The intention is to prevent (my) condo's annual surplus net income disappearing into thin air."
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Please note that blog comments and postings are not legal advice, rather only the opinions of our readers.