Close Menu

Schedule a Consultation Today!

800-652-4783

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.

Facebook Twitter LinkedIn Google Plus

Contact the Jacobs Law LLC

Message us by filling out the form below and someone will get back to you shortly

The invitation to contact our firm does not create an attorney-client relationship. The Jacobs Law, LLC respects your privacy online and will not share your name and contact information with a third party without your consent.

Schedule a Consultation Today!

Tel: 800-652-4783

36 Bromfield Street, Suite 502
Boston, MA 02108

Get Directions
  • facebook
  • twitter
  • linkedin
  • instagram
  • google+