Condo Fees Collection
There is no need to go to court. If your condo association is owed any monies by a unit owner, then the following information could save your association and YOU substantial money.
Condo associations are non-profit organizations. An association needs to collect all of its assessments to fund its budget. Condo fee delinquencies hurt all unit owners and present executive board members with unnecessary problems.
Condo Fee Delinquencies On The Rise
Condo fee delinquencies are on the rise in Rhode Island due to economic woes and excessive mortgage debt for many who purchased units after 2000. This combination of factors has increased the strain on condo budgets and executive board members. Increasing, boards have had trouble paying association bills and may be tempted to draw money from reserve funds to pay operating expenses.
Mortgage Foreclosures Don’t Take Away The Association’s Right To Receive Condo Fees
Rhode Island Law provides powerful rights to executive boards to collect up to six months of delinquent condo fees and up to $7,500 in attorney fees and costs incurred in collection prior to the foreclosure. The highest bidder at the foreclosure must pay all post-foreclosure condo fees in a timely manner. Executive boards need to take aggressive legal action now more than ever.
Condo Associations Have The Power To Collect Now
Rhode Island State Law gives condo associations statutory lien and foreclosure powers. Condo associations may foreclosure on units for delinquent condo fees in the same manner that mortgage lenders foreclosure on units for delinquent mortgage debt. Sadly, these powers are often not exercised due to lack of knowledge at the executive board level. If boards fail to collect delinquent condo fees, those good people who pay their condo fees have to make up the difference.
Attorney Fees For Collection Are Paid By The Delinquent Unit Owner Or Lender
Rhode Island State Law provides that attorney fees and costs incurred in collection are added to the delinquent condo fee debt as part of the association’s lien. Attorney fees and costs are paid from funds collected. There are no attorney fees due unless successful.
No Need To Go To Court
The use of lien and foreclosure powers means that there is no need for any court action. Executive members need only to communicate and cooperate with the attorney during collection. Visits to the attorney’s office are available, but not necessary since communication may be done via telephone, fax or email.