Condo Owner Must Produce Common Fee Check Archive

A.B. from Hartford County writes:

Dear Mister Condo,

The association where I reside is on its third management company since I moved in back in 2009. The biggest issue with the last two management companies is their lack of proper financial records and management of the associations funds. Our current management company is in the process of doing an audit on each unit based on the files/paperwork they were able to gain access to from the previous management companies. I provided a reconciliation when the second management came on and since I keep good records, I was able to put together a reconciliation of my payments since. I received a letter from the new management company telling me I owe a balance on my account and that I need to provide back-up (check copies). I am able to submit a list of checks and their bank posting date, but the check copies are going to cost me money. (My bank, as well as many others no longer provide check copies with statements. And I have e-statements). Can they force me to provide check copies or is my list of checks and the bank posting dates sufficient? Is it fair for me to push back and have them pay the fee for the checks they are requesting? What are my rights? I know for a FACT I do not owe any back payments.

Mister Condo replies:

A.B., I am sorry that you find yourself on the receiving end of what must feel like financial incompetence by the previous management companies. The reality is that the banks do charge a very small fee for providing archives of checks but that is just a cost of doing business. I would rather pay the very few dollars it will cost you to reconcile your payment record with the association than find yourself having to defend a collection action by the association. The association has the right to ask for these records and you have the right to provide them or not. If you don’t, the association will very likely hit you with late fees and other collection expenses. You don’t want that so go ahead and work with your bank to provide the records the new management company seeks. And, by all means, keep copies of any checks they provide so you don’t find yourself doing this again should the association hire yet another management company in a year or two. Good luck!

One thought on “Condo Owner Must Produce Common Fee Check Archive

  1. Good response Bob but I would think that if the free bank statements reflect payments to the association that would be evidence enough.

    The real culprit here are the management companies who do not comply with statutes regarding record keeping. A complaint should be made and if they are found to be incompetent their licenses should be pulled. Also, this speaks to boards of directors inquiring about management companies insurance policies especially their Errors and Omissions coverage.

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