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Is there a law regarding condo fees I live in a four-unit condo One of the members has not paid his condo fee for 7 months?
Yes, until the bank is the owner. The fact you're in foreclosure doesn't change the fact utilities need to be paid as well as your staff. It's not only the bank th…at can put you into foreclosure; even your HOA/condo association can force the sale of your home due to delinquency.
Assessments are owed to the association by the condominium owner. If it's a bank, then the bank owes assessments.
Your monthly assessments pay bills for services all owners benefit from, in common. For example, landscaping, sewer and water, refuse pick-up, master insurance policy premi…ums, property management fees and so forth. You are obligated to pay the monthly assessments assigned to your unit, so the only way to reduce your assessment amount is to find ways to save money in the budget process. As an owner, you can volunteer to work on the finance committee, so that you better understand your annual budget. There may be expenditures the board includes that can be reduced by negotiation, or by reducing use or frequency. For example, encourage your neighbors to recycle: recycle fees are usually lower than garbage fees; leave lawn clippings after a mow, thus reducing the amount of water required to keep the lawn green and thereby reducing your irrigation expense; conduct community clean-up parties, window washing parties and so forth -- limited by the practicalities of the suggestion, given the physical makeup of your community. Generally, monthly assessments are not reduced -- they may remain flat for a year or two, and you may be able to find ways to reduce expenses, thereby holding down increases to your monthly assessments.
Depends on the association. You pay assessments monthly, and they are an automatic part of condominium ownership, usually. You can ask your treasurer for a copy of the annua…l budget, so that you understand exactly how your assessments are being spent. Usually garbage and scavenger service, landscaping service and snow removal from streets and common courts (usually not driveways and sidewalks), and common property insurance which is usually liability insurance if someone gets hurt on a common area like your sidewalk or in a courtyard, and the structure of the buildings from the outside walls inward to your line of ownership -- see your governing documents for a description of the line -- roofs and sewers, plumbing, wiring and so forth. Overall maintenance, preservation and protection of the commonly owned real estate assets, including regular payments into your reserves, which are savings accounts that accumulate monies over time to replace significant physical elements, such as windows, roofs, sprinkler systems and so forth. Check the governing documents of the association for all the details you want.
They usually don't foreclose for a condo fee, but they will place a lien on the home, meaning it cannot be sold until the lien is resolved. You can read all about the associa…tion's responsibilities to collect condominium assessments and the process that can be followed in order to collect this debt in your governing documents. Foreclosing on your unit is usually an option, and the last one that an association would probably pursue. But associations usually have the obligation to pursue collecting the debt, and if foreclosure is the last option, the association may chose to use it. (When you don't pay your monthly assessments, you're essentially asking your neighbors to pay your bills.)
You can review the categories of services included in your annual budget to determine what is covered by your assessments. Generally, your assessments pay the costs of ope…rating the community, and includes contributions to your reserves. Typically, you'll find association management expenses, utilities, master policy premiums, legal fees, pest control, earthquake and/or flood insurance premiums, and so forth.
Your governing documents will give you the answer you want. Typically, the board files a lien against the owner's title for unpaid assessments with the local court. As a last… resort, the association may foreclose on the unit and sell it, to pay the owed debts.
Condominium associations develop a budget each year to pay the anticipated operating costs of the condominium community in the next year. If you live in a condominium communi…ty with zero amenities, your assessments must at least cover: your master insurance policy -- unless the owners are willing to own un-insured real estate assets;landscape expenses -- unless there is zero landscape to maintain;payments to reserves -- unless the association's owners can pay tens of thousands in special assessments when major replacements must be paid for;accounting services -- unless there is no record for assessments that are paid, no one pays the association's bills or prepares its annual tax return;basic utilities -- unless all utilities are billed to individual owners and there is no need for electricity, water, sewer or gas in the common areas;salaries -- unless there are no employees of the association; orpreventative maintenance -- unless there is none performed on the building(s), and so forth. So 'cheap' will be relative. Every condominium community is different from every other condominium community. Each is a private democracy that operates, depending on the composition of the board. Your treasurer can supply you with a copy of the budget -- a portion of which you pay monthly in assessments, based on your percentage of ownership -- and you can work with the treasurer to help reduce your annual assessments by offering ideas about ways to save expenses.
Yes. Apparently, your question implies that using your leverage by not paying your assessments will change the behaviour of the board. This is not a valid assumption. Read …your governing documents to better understand your options. Your monthly assessments pay the bills for operating the community. The bills may include basic utilities, maintenance and upkeep of the buildings and the grounds, master insurance policy premium payments and contributions to your reserve accounts. If you don't pay your assessments, your association can pursue you to recover the debt, and may file a lien on your title, deny you services or access to amenities, or as a last resort, sell your unit to recover the money you owe. Your board is legally liable under the laws of your state to operate your (non-profit) corporation and govern your private democracy according to the guidelines written in your governing documents. Attend board meetings and be prepared to identify specific sections of your CC&Rs, By-laws and Board Resolutions that your board violates. Then, write a letter to the board pointing out their violation and request that the matter be handed at the next board meeting. At the subsequent board meeting, request that the board vote to either operate according to the guidelines, or continue to operate in violation of them. Request that the vote be taken and recorded in the minutes. This way, you'll begin to build a paper trail of the board's violations. Most board members soon realize the gravity of their violations and begin following the guidelines. Otherwise, you can rally similarly affected owners and by way of a vote of owners -- your governing documents state the percentage required -- remove the board and vote new members into the positions.
Every condominium association, which is the business that protects, maintains and preserves the real estate assets that you own communally with all the other unit owners, requ…ires money to operate the business. Depending on the amenities in your community, the 'fees', most properly called assessments -- can cover everything from pool maintenance, landscaping, contributions to reserves, master insurance policy premiums, and more. Your treasurer can give you a copy of the annual budget, so that you can review the line items showing how each of your assessment dollars is spent.
Your governing documents are specific about your responsibility to pay your assessments. Sometimes, assessments are due on an annual basis and payable monthly.
If your association has filed a lien on a title for unpaid assessments, the board worked with an association-savvy attorney to file the formal lien. Depending on the type of …lien filed, the attorney and the board work together to maintain a current status of the lien, so that the cloud on the title remains. (It's unreasonable to enjoy the amenities of a condominium community without paying the assessments that you owe, especially when you believe that you can simply 'wait it out' and have the lien forgiven, based on the passage of time. It's a truly unfair way to ask your neighbors to pay your bills.)
A local realtor can help you understand the regular and special assessments for any condominium association in your geography. There is no standard.
Yes. One key benefit of an HO-6 -- condominium owners' insurance policy -- is the option to insure against loss of habitation, which can include paying your assessments durin…g a period when your unit is not available for habitation. Without this kind of insurance coverage, you must still pay your assessments in addition to whatever extraordinary living expenses you are incurring while the repairs are being accomplished. You can ask your board members or your management company to help you find these provisions in your governing documents.
Condominium living implies assessments, regardless of the amenities owned by the association.
The board or the association manager can answer your question.
Assessments pay to operate the community on an annual basis. Usually, there is no limit. However, in some geographies, engaged mortgage lenders must be notified when asses…sments are increased more than 25% in one year.