What does it mean if a condo association puts a lien on your condo if you haven't been able to pay your asessment fees?
As an owner, it means that your title to your unit is 'clouded' -- your title is encumbered/ not clear -- by the amount of your assessments past due and accumulating, that remain unpaid.
A lien may also appear on your personal credit report if the title is in your name.
A lien may also appear on your personal credit report if the title is in your name.
1 person found this useful
A lien is a legal instrument which prevents the property it is attached to from being transferred, sold, refinanced, and so forth by the owners until the debt pertaining to the judgment lien is paid in full or satisfied. A "perfected lien" against real property becomes a secured debt and in some …states under specific conditions it allows the lien holder to petition the court for the forced sale of the named property. Another Answer When a lien is filed on a condominium, the lien is based on a standing agreement between the owner and the association that the owner will pay monies to the association which have not been paid. There is no 'judgement' involved. You can find the details of this agreement in the association's governing documents. Once a lien is filed, it not only clouds title to the property, as above, but can appear on the owner's credit report. (MORE)
If the condo is foreclosed on during the lien can you be sued for the lien amount after the condo has been foreclosed on?
You are responsible for all debits to the Association and Mortgage holder until the unit is sold. If the unit is sold the New owner get to pay your bad debit, the mortgage company will hold you responsible for any difference between the sales price and what is owed.
Typically, yes, if it is a bona fide lien due to not paying your assessments or for a fine as a result of non-compliance with house rules. Note that laws vary from state to state, so it is a good idea to talk with an association-savvy attorney in your area for more info on your state's laws. Try t…o work out a payment plan with the condo association if you are in financial trouble. Your mortgage company might also be able to help. Note, however, that they may declare your loan in default for not paying your assessments. (MORE)
Read your governing documents about filing liens for unpaid assessments, then take the documents to an attorney, who can help you file a lien. You'll also need a ledger for the unit owner, showing unpaid balances.
The association wants to do more than report owners delinquent. The association wants to collect the debt. Check your governing documents to discover whether or not your assessments are automatically liens against the units. If so, then the association's attorney can file a formal lien. The boa…rd may also have additional recourse to collect unpaid assessments, including perhaps selling the unit in order to satisfy the debt. One way is to report the delinquent unit owners to a collections company, though these companies usually charge outrageous fees. I suggest the association retain a real estate attorney and file liens against the delinquent units. These liens may be foreclosed if not paid, which will be an incentive for the delinquent unit owners to pay up. Don't try to file liens without an attorney--if done incorrectly, thousands of dollars in attorney fees will likely be spent. The liens will then show up on the delinquent owners' credit reports. In most states, it is not legal to publish a debtor's name, but you may be able to publish the unit number in your financial reports and board meeting minutes. Once a lien is filed, it becomes public record and can appear on an owner's credit report. (MORE)
The association filed a formal lien with the court, on your condominium home -- probably -- for unpaid assessments. (Your monthly assessments pay bills to vendors who service the community, such as sewer, water, garbage, master insurance policy premiums, landscaping and so forth. When you don't pay… your assessments, essentially you ask your neighbors to pay your bills.) The effect of the lien is that the title to your ownership is clouded. A lien can appear on your credit report. In order to sell your unit, the lien must be paid and the lien lifted. Read your governing documents to determine the steps that your board can take to recover the monies you owe, potentially including foreclosing on your unit in order to satisfy the lien. (MORE)
You can find the answer you want in your governing documents. Your monthly assessments cover bills the community incurs for community services, such as master insurance policy premiums, landscape services, property management services, sewer and water bills, and so forth. When you don't pay your …assessments, you essentially require your neighbors to pay your bills. Your board can employ remedies necessary to collect your assessments, which may automatically be a lien on your condominium. The board can file a formal lien document with a local court, which effectively publishes your status. This clouds your property title and becomes public record. If your board is granted power in your governing documents to sell your unit in order to collect your assessments, it may choose to take this route if all other attempts fail. (MORE)
You will have to read the fine print of the bylaws to see how it is handled. Your governing documents, including board meeting minutes, which may have addressed the phenomenon that attracts squirrels -- such as a bird feeder -- will give you the answer you need. Also, it depends on what was damaged… and whether the damaged item(s) were owned by the association or by an individual. As the board or the property manager to assist you in your research. (MORE)
Yes, a condominium can put a lien on your condo. The condominium depends on your payments to keep up the common areas. As a result, it has the right to collect its fees plus interest when you sell it if you do not pay your assessments and a lien is filed. As well, the association may be able to sell… your unit in order to collect these unpaid assessments. Read your governing documents to remind yourself of your agreement to pay assessments and of your association's responsibility to pursue you until the assessments are paid. When you do not pay your assessments, you're essentially asking your neighbors to pay your bills. (MORE)
Assessments - you call them fees -- pay for the operation of thecondominium community. Whoever enjoys the ownership privileges ofthe community is liable for the monthly assessments. If you are the owner upon whom the foreclosure is executed, youstill owe your unpaid assessments up to that date. I…f you no longer own the unit and there are unpaid assessments thatyou owe, these are valid debts you are obliged to pay. Read yourgoverning documents to verify that assessments are an automaticlien in your title, and that you may also be liable personally topay the debt. When you purchase a condominium that has been in foreclosure, youare required to pay the ongoing assessments, and may have aresponsibility to pay the assessments in arrears, depending on howthe foreclosure agreement was structured. (MORE)
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 premiums, property management fees and so forth. You are obligated to pay the monthly assessments assigned to your unit, so the on…ly 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. (MORE)
The governing documents for the association spell out eviction processes. They also detail the steps that the board can take when an owner falls delinquent in paying their assessments. One option could be to step into the revenue stream enjoyed by the owner from the tenant, as a way to collect past… due assessments. The additional document you need is your lease or rental agreement, which may also spell out your rights. Finally, you can check Florida state law regarding tenants' rights, to verify what yours might be in this case. (MORE)
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 association's responsibilities to collect condominium assessments and the process that can be followed in order to collect this de…bt 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.) (MORE)
If Massachusetts is like most other states, the attorney who filed the lien on behalf of the association can provide you a total amount to pay, which includes the lien amount, the attorney's fee and the filing fee. In order to lift or remove the lien, you must pay these amounts -- usually to the at…torney, who will then distribute the funds to the association and keep his/her fee and expenses. Once paid, the attorney can direct you in the process to follow so you can file a 'release of lien' document with the local court, thus clearing title to your unit. (MORE)
A lien for unpaid assessments has been placed on your unit by the condo association - can they foreclose on your condo owned outright?
You can find the answer you want in your governing documents. Usually, regardless of the ownership status -- outright ownership or mortgaged -- unpaid condominium assessments represent an automatic lien on your unit's title. Apparently, your board has filed a formal lien with the court based on th…ese unpaid assessments. Your governing documents may detail the extent to which the board can act, which might include foreclosure on your unit in order to recover these unpaid assessments. (Your assessments pay communal fees, such as master policy insurance premiums, garbage and recycle fees, landscaping, utilities, and property management expenses, staff salaries, and more. Not paying your assessments means that you may be 'living on the backs' of your neighbors, because they are paying your share of common expenses.) (MORE)
If you own your home outright and the condo association has placed a lien on it for unpaid condo association fees can they take your home if the fees are not paid?
Yes. Read your governing documents to verify that your monthly assessments represent an automatic lien on your title. When your board decides to file a formal lien, they are taking one of several steps they are entitled to take to collect the debt, including selling your condominium. (When you …don't pay your assessments, you ask your neighbors to pay your bills.) It's a good idea to pay your assessments each month. (MORE)
Yes. The association can file a lien on your title to force you to pay a debt that you owe, usually unpaid monthly assessments.
Yes, generally. Associations levy assessments against unit owners in order to pay for communal expenses. These might include: . Master insurance policy premiums . Landscape, pool, public recreational area maintenance . Basic utilities, and/or cable and Internet services . Contributions to main…tenance reserves and other reserves, so that real estate assets you own in common can be replaced at the end of their useful lives . Professional services, such as tax preparers, property managers, reserve study experts, building inspectors and so forth When you purchase a condominium, review the governing documents to confirm that you will be responsible for assessments, and to understand what steps your potential association's board must take against you, should you fall into arrears. Part of condominium life is freedom from exterior maintenance of your home. The price for that freedom is assessments. Finally, when you purchase a condominium you become a member of a multi-million dollar (usually) non-profit corporation that is charged with the security, maintenance and preservation of the real estate assets that you own in common with all other owners. Unless your community profits from rental of its amenities, its only source of income is association assessments. (MORE)
Read your governing documents to determine which actions your association can take in order to collect assessments that you owe and do not pay. As well, it's reasonable, for example, that if you don't pay your monthly assessments, and the association pays your electric bill from assessments that …are collected, that they can deny electric service to you, since you aren't paying for it. (MORE)
Yes. The association can file a lien on your unit's title, which clouds it and which shows up on your credit rating. Read your governing documents to remind yourself of your contract with the association to pay your assessments, which the association uses to pay the expenses of operating the comm…unity. Further, understand that a lien may not be the final step that the association can take to collect this debt that you owe; the association may be able to foreclose on your property and sell it to retire the debt. (MORE)
Yes, generally. Your governing documents could be very specific on this issue. (Generally, assessments are levied against owners in order to pay the operating expenses of the community. Often, not only do owners agree to pay them when they purchase a unit, but your governing documents may indicate …that the liability to pay is also a personal liability.) It's a good idea for the association's treasurer to set the late fee amount and the due date and remind owners annually. Often these details are included in assessment payment book coupons. Interest is also chargeable, but only according to the amounts documented in the CC&Rs. Finally, depending on the expenses that the assessments pay monthly, the association may deny services to a non-paying owner, to and including utilities, club room or pool access, and so forth. As a last resort, the association may be able to sell the unit to retire the debt. (MORE)
no but trying to If a condo owner falls more than 90 days in arrears of association, the right to use common areas can be suspended by the association until such dues are paid.
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 com…munity. 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. (MORE)
Yes. Your membership in your condominium association, which is the business chartered with the tasks involved with 'protecting, preserving and maintaining' the real estate assets you own in common with all other owners, is not optional. When you purchased your unit, you agreed in writing not only… to membership, but to abide by the guidelines established in your governing documents. You agreed, as well, to pay your monthly assessments, which pay for such operating expenses as mowing the lawn, cleaning the pool, painting the exterior of the building(s), master insurance policy premiums, and regular contributions to reserves which the association uses to pay for replacing major systems, such as the roof(s). When you don't pay your assessments, the association is required to pursue you for the debt you owe. Penalties for non-payment may include late fees, notices of violation, a lien in your title, and in the worst case, sale of your unit to pay your unpaid assessments. Read your governing documents to most fully understand your responsibilities and rights as an owner in the private democracy where you own a condominium. (MORE)
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, requires money to operate the business. Depending on the amenities in your community, the 'fees', most properly called assessm…ents -- 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. (MORE)
Condominium assessments are established -- usually once per year -- by the treasurer and the finance committee. The process includes reviewing last year's expenses, working with established vendors to understand next year's increases, and adding budget money for work to be done. Once per year,… the association holds a budget ratification meeting, which is the board's opportunity to explain to the membership -- unit owners -- what's included in the budget and explain each line item. You can read more about the board's requirement to set a budget and call the budget meeting to ratify the proposed budget for the next year in your governing documents (MORE)
Yes, in a word. If your water is paid for by the assessments you promised to pay when you purchased your unit, and you do not pay your assessments, then the association can deny you access to services, including water, for which you refuse to pay. Read your governing documents to more fully under…stand both your responsibility to pay assessments, and the association's duty to collect them, and the lengths to which the association can go to satisfy your debt. (MORE)
Work with your governing documents, your property manager and your association's attorney to file a lien on a condominium unit. Before filing a lien, verify that the board has followed all the notification steps required in order to offer the owner an opportunity to conform to the governing docume…nts. (MORE)
Read your governing documents and work with your association attorney to file a lien for unpaid assessments.
Read your governing documents to understand what's legal in your community and state. Usually, the association's attorney gives notice, which is required, with an opportunity given to the errant owner to make an arrangement to bring the account current. Once this process is complete, if the unpaid… assessments remain unpaid, then the attorney can file a formal lien with the local courthouse. (MORE)
Your treasurer or property manager is best equipped to interpret the acronyms used in your condominium assessment budget. There are no standards, so individual properties make up their individual expense line items.
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 titl…e 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.) (MORE)
If 'we' is the association board, then this task is best accomplished with the help and knowledge of an association savvy attorney. There are official and formal steps that must be followed in advance of filing a lien, that must bear legal scrutiny in order for the lien to be valid. These steps …are detailed in your governing documents. An individual owner must work through the board in order to file a lien. (MORE)
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 during 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. (MORE)
Regardless of the state where the real estate is located, read your state law and governing documents to identify the responsibilities of the board, of the owner and of the lien process involved. There is no standard, every state is different and communities within each state have unique governin…g documents that address unpaid assessments. If you are a board member, best practices dictate that you work with your association's association-savvy attorney to file the proper lien -- there are many kinds and types of liens, and to confirm in advance of filing, that the board has followed all the steps necessary in advance -- with no success in collection. These steps are outlined in your community's governing documents. Your attorney will add fees and filing expenses, which will be added to the amount owed in unpaid assessments. (MORE)
In a word, yes. And in doing so, please acknowledge the consequences of this action, as below. Your governing documents are clear about how the association must handle unpaid assessments. When your account becomes past due, the association will send collection notices and letters. Your associatio…n can also file a lien on your title for past-due assessments, which clouds your title and shows up on your credit report. As a last resort, your association may sell your unit to collect the monies that you owe. Answer No . When you purchased your unit you agreed, by signing a contract (in some cases by signing your unit deed), to be bound by the provisions in the Master Deed including all the rules and regulations. If you breach that agreement you will be subject to whatever procedure is used by the unit owner's association for collections. Your debt will increase because costs, penalties, interest and legal fees may be added to the amount you owe. (MORE)
Can your condo association put a lien on your condo if you haven't been able to pay your maintenance fees?
Short answer: yes. Longer answer: If you are unable to keep up with paying your assessments, it's always a good idea to relay this information to your association management company and work out a payment plan. Working out a payment plan demonstrates your good intentions to pay what you owe. Igno…ring attempts to collect what you owe demonstrates your willingness to require that your neighbors pay your bills. (MORE)
Your attempt to correlate your obligation to pay your assessments with the board's responsibility to follow the governing documents is not a valid correlation. Read your governing documents to confirm your obligation to pay your assessments. As well, you can notify your board of their violations o…f your governing documents, by way of a formal letter. In your letter, reference the section of the governing documents that you believe the board is violating, together with a description of your evidence of their failure to 'follow the guidelines'. Request an entry on the next board meeting agenda, and time to present your case. Ask the board to vote to either follow the guideline or to continue to violate the guideline. If the board's practice continues, you can take a copy of the board meeting minutes to an association-savvy attorney, who will help you educate your board as to its irresponsibility to operate the association according to your governing documents. Include your association manager in your letter, and if possible, the association manager may become your ally. (MORE)
Condominium unit ownership and assessments are not separate; assessments are always associated with a condominium unit. LONGER ANSWER Assessments connected to individual condominium units are included in the purchase/sale agreement, based on the allocated interest of that unit in a 100% total o…wnership of all the common areas in the community that are owned in common by all owners. Said another way, one always buys/sells a condominium unit with assessments, the amount of each being determined annually by the association. (Assessments pay bills to operate the community. Line items can include master insurance policy premium, maintenance and upkeep of amenities, contributions to reserves and other expenses to be funded by owners.) (MORE)
Your association -- or whomever placed the lien on your title -- can describe the steps necessary for you to follow in order to release the lien and clear your title.
Your state law may help decide who ultimately pays assessments once a unit owner discontinues paying them. Sometimes, assessments area declared as 'super-priority' payments that are paid when the unit is sold, and for a specified number of months. Savvy associations work with lenders that reposse…ss, to insure that assessments continue to flow in. Otherwise, the expenses of this unit are paid by all other owners. When owners remain in their units during the repossession process, and fail to pay assessments, again, savvy association boards work with association counsel to file appropriate liens, to insure repayment of as many assessment dollars as possible. (MORE)
Legally, so long as the title to the unit is in your name, you owethe association the payment of the assessments levied against yourunit. Assessment income pays for the operation of the community.Especially if you remain in residence, you can pay yourassessments: otherwise, you're living there on y…our neighbor'sfinancial backs. Your bankruptcy attorney, association manager or board director cangive you the legal answer to your question, if you require it. (MORE)
What is the process of your condo association putting a lien on your property if your mortgage is paid up?
The association must notify you of assessments due, and afford youa payment plan to pay your assessments. Usually, these are monthlypayments you make to the association. When you don't pay your assessments, the association may file alien on your title. What you owe to the association is not related… to your mortgage.Your mortgage is a financial relationship that you have with yourbank. Your assessments pay for the operation of the community, andyou are obligated to pay your assessments. Read your governing documents to determine and understand yourfinancial responsibilities to the association. (MORE)
The association works with the association's counsel to pick astyle of lien and file it. An improper lien or one that is notfiled properly gives the owner an out. As well, be prepared to present the attorney with evidence that theassociation has exhausted all other means available in order tocollec…t the past due amounts. (MORE)
Can a condo association President vote for unbuilt units If so is he responsible to pay association fees and special assessments for the voted units?
Your answer is complex, and requires precise definitions. Usually, unbuilt units have no voting rights, because there is noallocated interest in the association's assets for unbuilt units. If the association president is not the developer, the presidenthas no vested interest in voting for units th…e president does notown. If the president is the developer, the developer may be able toexude development or declarant's rights that address unbuilt units. Your best answer will be available from an association-savvyattorney in your local area. Be prepared to show evidence of themotions being voted upon and who is voting, based on whatauthority. Bottom line, it appears to be patently unfair for current owners tobe burdened financially for unbuilt units, if no one else is payingthe allocated interest share for those units. (MORE)
If you own a condominium that you rent, you remain obligated to pay your assessments. If you rent a condominium, you may be obligated to pay assessment through the terms of your lease.
There is no standard, plus all fees are negotiable. The real estate agent involved in your transaction can explain fees to you.
Best practices dictate that the board and association manager review the local laws and work with the bank to collect unpaid assessments and maintain currency with assessments as they are due until the unit is sold. Your local association-savvy attorney may also have some ideas about collecting t…hese assessments. Unpaid assessments can only be paid once the unit is sold, usually. Your answer may be location-centric. In some states, assessments have a 'super-priority' in terms of who gets paid first -- but only for six months' worth of assessments. In some locations, smart associations pursue the banks for unpaid assessments and force payment with ongoing payments until the unit is sold. (MORE)
Who is responsible for paying for County Inspection Fees when a condo association replaces a garage door?
It is reasonable that the owner of the garage door, whocommissioned the replacement, is liable for the inspection. Read your governing documents to determine who owns the garagedoor. Some individual garage doors are limited common elements, and arestill owned by the association.
Filing a lien on an owner's title is a specialized action that isbest performed by an attorney schooled in common interestcommunities. Filing the wrong lien, improperly, will jeopardize theassociation's standing in the matter.