Wha to do if my HOA is charging excessive legal fees?
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Wha to do if my HOA is charging excessive legal fees?
Our HOA will contact lawyers as soon as you are behind and charge you those fees and late fees. Being one payment behind can cost you up to $500 in fees. They do not send bills, they do not send any kind of statements to let you know if payment was received and they only accept electronic payments if you are paying a quarter ahead of the current one due. If you send in a check and they misread the account number they will send you a letter from there lawyers within a week. If you are two payments behind they send you a court summons by courier. This just does not sound legal?
Asked on May 14, 2012 under Real Estate Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Unfortunately, it most likely is legal. The HOA is allowed to charge essentially whatever fees the HOA agreement and other governing documents provide for; it is allowed to take collections and/or legal action as soon as payments are not made on time; and the law does not specifically require any particular way of letting you know that payments are due--again, it's up to whatever they are required, or at least allowed, to do under the governing documents. You need to review those documents to see what is lawful and what is not; they can do anything permitted by their governing documents, but not things not authorized by them.
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