What to do if condo owners refuse to pay their dues?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if condo owners refuse to pay their dues?

Our dues were $300 per unit per quarter, which barely got us by. We have a large flood insurance bill due on the 15th of next month and another insurance bill due the month after. We need $700 paid for this quarter by all units; then we will have to raise our dues a bit. Now 2 owners said they do not have the money and refuse to pay. I am sure by-laws require them to pay but obviously that doesn’t matter. Is there any legal recourse that we could start with? We are afraid consulting a lawyer will incur even more money which our treasury doesn’t have.

Asked on February 19, 2012 under Real Estate Law, Maryland

Answers:

Joseph Gasparrini

Answered 9 years ago | Contributor

I understand that you condo association is very reluctant to hire a lawyer because of concern about the cost.  However, in this case it is necessary.  Ultimately, you may be able to force the delinquent unit owners to pay reimburse the association for the attorney's fees incurred in taking appropriate legal action.  The organizational documents of many condominiums contain provisions to require such reimbursement.  You should start by carefully reviewing the condo documents to find out if that is the case for your association.  Regardless of wheter reimbursement is required, the board of directors have an obligation to enforce the common charge payment requirement.  The unit owners are going to have to provide money for legal counsel to deal with this problem.  You are likely to find that the condo documents give the association the right to file a lien against the unit for past-due common charges, and if necessary your attorney can file legal papers in court to foreclose the lien, and to recover the past-due charges, late charges and possibly attorney's fees.  In this situation the board should take prompt action to protect the rights of the other unit owners who are paying their charges, and to protect the financial integrity of the condominium.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption