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If people don't pay condo fees and their isn't enough money for bills what happens?


i pay my condo fees but others don't and it's become a sticky situation. what happens do the courts take it over or what.
do i lose my investment even tho i pay my bills . PLEASE HELP

the problem is that there are approximately 4 condo owners out of 12 who are deliquent but still use services. so they are not contributing to the monthly bills , we are not rich and the good owners might not be able to meet current expenses . ps they voted down reserve funds yikes

First, do you have a collections policy? Do you have a management company? If you have both, the management company should be collecting assessments according to the collections policy (such as a late fee after 15 days, delinquent after 30 days, pre-lien letter at 45 days, lien at 60 days).

If you do not have a collections policy or a management company, the board needs to create a collections policy based on your CC&Rs and Bylaws - there are samples, but the Association's attorney should look at it as well. Then they should distribute this to all the owners. After 30 days, the board MUST begin to uniformly enforce the collections policy.

If they do not, they could be in BIG trouble. Does your board have Directors & Officers Liability insurance? I sure hope so! If your association runs out of money, and can't pay the water bill, the electricity, or (heaven forbid) the insurance bill, the board may be in a lot of trouble.

If the utilities were to be shut off, your local health department could force all the residents to leave.

This is serious.

I don't think you will. Those who don't pay will eventually be forced to see their condo to pay off the debt.

Those who don't pay their fees will face liens on their property. The association should keep enough money to cover situations like this.

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