How to Collect Condo Fees

Condominium residents are charged a fee for property maintenance.

Condominium purchase agreements include a provision that hold owners of condos responsible for payment of condo fees to the condominium association. These fees become due on a monthly or annual basis; if they remain unpaid, the association has difficulty meeting its financial obligations. Most owners pay their fees on or before their due date; however some may fall far behind in payment. When that happens, the condominium association needs to take steps to effect collection.

Things You'll Need

• Payment plan
• Mail receipts
• Lien receipt
• Documentation

Instructions

1. 

   Arrange a meeting with the condominium owner.

   Arrange a face-to-face visit with the owner of the condominium. Make a personal attempt to collect all overdue condo fees. Offer a payment plan to the condo owner. Allow for payment of overdue amounts in installments payable within a specified period of time. Explain the consequences of incurring a lien if the condo fees remain unpaid.

2. 

   Send a delinquency notice by registered mail.

   Draft a notification of delinquency. Call attention to the total amount of overdue condo fees. Allow five business days for payment of all overdue fees. Explain that payment of all past due amounts will prevent the filing a property lien against the property. Send the notice by registered mail to the owner of the condominium and request a return receipt for service.

3. 

   Specify a final date that condo fees can be paid to avoid a property lien.

   Prepare a follow-up delinquency notice. Request immediate payment of condo fees. Specify the target date for recording a lien against the property. Send this notice to the condo owner by registered mail with a return receipt for service.

4. 

   Record a lien against the property.

   Record a lien against the property. The condominium association has a right under the purchase agreement to file a lien against the property to satisfy all unpaid condo fees. A lien is filed against the property at the office of the county assessor. The assessor's office is located in the same county as the condominium.

5. 

   Give all pertinent records to the association's attorney.

   Conclude all efforts to collect. Gather up all meeting records, telephone notes, copies of notices and receipts for mail sent to the condo owner. Turn everything over to the attorney who represents the condominium association.

Tips & Warnings

• Keep a written record of your attempts to collect past-due condo fees. Document places and dates of meetings, telephone calls made to and received from the delinquent condo owner, and retain copies of all emails and registered mailings.

• Avoid confrontation with people whose condo fees are delinquent. When the association's attorney becomes involved, direct all inquiries and communication to the attorney's office.

References

• "Essentials of Practical Real Estate Law"; Daniel F. Hinkel; 2007
• "The Homeowners Association Manual"; Peter M. Dunbar, Marc W. Dunbar; 2004
• "Managing Debt for Dummies"; John Ventura, Mary Reed; 2007
• "Condominium and Homeowner Association Practice: Community Association Law"; Wayne S. Hyatt; 1988