What to do if condo owners refuse to pay their dues?

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What to do if condo owners refuse to pay their dues?

Our dues were $300 per unit per quarter, which barely got us by. We have a large flood insurance bill due on the 15th of next month and another insurance bill due the month after. We need $700 paid for this quarter by all units; then we will have to raise our dues a bit. Now 2 owners said they do not have the money and refuse to pay. I am sure by-laws require them to pay but obviously that doesn’t matter. Is there any legal recourse that we could start with? We are afraid consulting a lawyer will incur even more money which our treasury doesn’t have.

Asked on February 19, 2012 under Real Estate Law, Maryland

Answers:

Joseph Gasparrini

Answered 12 years ago | Contributor

I understand that you condo association is very reluctant to hire a lawyer because of concern about the cost.  However, in this case it is necessary.  Ultimately, you may be able to force the delinquent unit owners to pay reimburse the association for the attorney's fees incurred in taking appropriate legal action.  The organizational documents of many condominiums contain provisions to require such reimbursement.  You should start by carefully reviewing the condo documents to find out if that is the case for your association.  Regardless of wheter reimbursement is required, the board of directors have an obligation to enforce the common charge payment requirement.  The unit owners are going to have to provide money for legal counsel to deal with this problem.  You are likely to find that the condo documents give the association the right to file a lien against the unit for past-due common charges, and if necessary your attorney can file legal papers in court to foreclose the lien, and to recover the past-due charges, late charges and possibly attorney's fees.  In this situation the board should take prompt action to protect the rights of the other unit owners who are paying their charges, and to protect the financial integrity of the condominium.


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