C.B. from New Haven County writes:
Dear Mister Condo,
Is there a statute of limitations for collecting outstanding condo fees?
Mister Condo replies:
C.B., common fees should be collected as they come due to the association. The association has by-laws in their declaration that outlines what happens when a unit owner does not pay those fees in a timely fashion. The traditional remedies are late fees, followed by collection fees, and ultimately repossession of the unit through a foreclosure liquidation. That being said, if no action is taken against a delinquent unit owner, it is possible that the association could wind up being shortchanged because a unit owner files for bankruptcy protection and the uncollected common fees in arrears go beyond the 9 months that the state of Connecticut grants as a super lien on the condominium unit. In other words, if 24 months of fees are owed and the unit is foreclosed, the association is only guaranteed 9 months of fees plus reasonable attorney fees at the settlement. The remaining amount is up for grabs and is usually written off as mortgages and other liens against the property are settled. I am not aware of any statute of limitations when it comes to when the association can take action against a delinquent unit owner. The reality is that if the association is paying attention to common fee collection, there is no reason action shouldn’t be taken as soon as possible against a delinquent unit owner. Good luck!
Delinquent Condo Common Fee Statute of Limitations: https://t.co/Z9kcCdkvHc
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A Board has to run the association as a business and establish and enforce a policy of collecting late fees and delinquent Common Charges. They can also NOT depend on banks or mortgage companies to start foreclosure actions in a timely manner. For 18 years we started court action after 3 months – and never had to “write off” any Common Charges because we foreclosed and forced Banks to redeem and take over on their law day and they became responsible for Common Charges.
Thanks for the insight, Art Cyr!
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Can a condo unit owner be compelled to pay condo fees, after being late for seven (7) years, if not, why in Massachusetts?
R.L., common fees accrue as they are due and the association has every right to collect those fees. Compelling an owner to pay typically involves filing of liens and a foreclosure action. Depending on the equity in the unit, the association may be able to recover all that it is owed or it may have to take a write-off. Massachusetts provides a 6-month “super lien” to protect the association’s interest. I can’t imagine why the association has allowed these fees to accrue for 7 years. Theoretically, the association would collect 6 months worth of fees under the super lien. The other 6 and a half years would be only be collected in the unit was foreclosed, sold, and there were enough surplus funds after the sale to pay for the additional arrears. Speak with an attorney soon and see if you can’t remedy this problem before it gets even worse. all the best!