A Condo Unit Owner Has Not Paid Condo Fees in Months, What Can I Do Now?
Condos Are Subject to M.G.L. ch.183A
Every {Condominium, Condo} is subject to a specific statute in Massachusetts titled Massachusetts General Laws Chapter 183A (“MGL c.183A”). {Condominiums, Condos} are special entities and have legal independence, but are distinct from a non-profit entity or a corporation. {Condominium, Condo} are established as “Trusts” with Beneficiaries and at least one Trustee. The Beneficiaries are the Unit Owners. Each Unit Owner ‘owns’ a percentage of the Trust and is responsible for the same percentage of Common Expenses, Monthly {Condominium, Condo} Fees and Special Assessments. {Condominium, Condo} Trustees are also Unit Owners, but a management company can be hired by the Trustee(s) to run most of the day-to-day operations. However, hiring a management company can be expensive and is typically used by larger {Condominium, Condo}. As a result, the vast majority of {Condominium, Condo} are run and managed by Unit Owners elected as Trustees.
Unpaid Condo Fees Can Be Collected
When a Unit Owner fails to pay Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses it can become a serious financial burden on the {Condominium, Condo} “Trust”. However, MGL c.183A gives {Condominium, Condo} Trustees significant power and authority to collect unpaid Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses from delinquent Unit Owners. The problem for many {Condominium, Condo} Trustees is that they don’t know what their options are or how to properly collect unpaid Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses from a Unit Owner. The process becomes a bit more tricky as well when a {Condominium, Condo} unit is in foreclosure or bank-owned.
The Jacobs Law, LLC {helps, assists} {Condominium, Condo} Trusts and Trustees with {the process of collecting, collection of} {unpaid, delinquent} Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses.
Unpaid Condo Fees Can Receive Super Lien Priority Status
First, according to MGL c.183A, section 6, every Trustee should know that the {Condominium, Condo} Trust has what is called a “Super Lien” on a Unit Owner’s {Condominium, Condo} unit for Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses. See http://www.malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter183a/Section6 to read through the entire statute. The {Trustee, Condo, Condominium} must take certain action to obtain the Super Lien, but it is a process The Jacobs Law, LLC can help complete. A Super Lien has priority over even the mortgage company that lent the Unit Owner money to purchase the {Condominium, Condo} unit – which means that the {Condominium, Condo} Trust can force the foreclosure of a Unit Owner’s {Condominium, Condo} unit for unpaid Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses. Due to this fact, the mortgage company will regularly pay the outstanding {Condominium, Condo} {fees, expenses} due to avoid having their mortgage lower on the priority list. Banks that own a foreclosed {Condominium, Condo} unit, or one that has been abandoned, will generally work with the {Condominium, Condo} Trust’s {attorney, lawyer, legal counsel} to pay past due Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses as well as the legal fees and costs {incurred, charged, billed} to collect the unpaid amounts.
Second, not ALL fees assessed by the {Condominium, Condo} are eligible for Super Lien priority status. Pursuant to MGL c.183A “late charges, fines, penalties, and interest assessed by the [{Condominium, Condo} Trust]” are not subject to Super Lien priority status. There are also special considerations for “Special Assessments” – those assessments which are not in the regularly charged to Unit Owners, such as an assessment to fix a broken-down central air system.
Unit Owner Pays All Attorney’s Fees & Costs Related to Collection of Unpaid Condo Fees
Third, as mentioned above, the costs of collecting unpaid Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses can be charged to the Unit Owner—whether owned by the buyer of the {Condominium, Condo} unit or the bank. Therefore, all the attorney’s fees, costs, court filing fees, and related expenses do not need to be paid by the {Condominium, Condo} Trust – they are paid by the Unit Owner who has failed to pay the Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses, the mortgage company, or by the bank that owns the foreclosed property. Given this fact, it highly advisable that {Condominium, Condo} Trustees hire legal counsel to perform the process of collecting unpaid Monthly {Condominium, Condo} Fees, Special Assessments, or other Common Expenses from a delinquent Unit Owner. There are various pitfalls and requirements that must be adhered to throughout the process, but the {Condominium, Condo} Trust itself will be charged little to no attorney’s fees.
Contact a {Condominium, Condo} Attorney at The Jacobs Law, LLC today
If you are a {Condominium, Condo} Trustee and need {an attorney, a lawyer, a legal counsel} to help collect unpaid Condo fees from a Unit Owner, {contact The Jacobs Law LLC now, call The Jacobs Law LLC today}. One of our {Condo, Condominium} {attorneys, lawyers} will discuss the issues with you immediately, and can handle the entire collection process on behalf of the {Condo, Condominium} Trustees.