Forwarded DEBT, but No Account Ledger of Detailed Receipt

Started by ChadW • 6 replies • 1812 views

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ChadW (Washington)
Posts: 3

Posted:

I live in the Renton, Washington area and I bought my condo June 19th 2005. I wondered if there was a law (like the Revised Code of Washington RCW) that prevents a property management from adding a debt a forwarded debt from a previous property management company where there is no account prior to 2007? That's 2 years where my account is blank/non-existent.

Let me know if I can fill in on some needed details to be able to answer my question. Thank you all for taking the time to read this. CHeers!! =)

Chad

GlenL (Ohio)
Posts: 5,491

Posted:

Your debt is with the Condo Association not the Management Company, are you saying they forgot to collect from you for two years but the new MC caught it? Pay up.

Studies show that 5 out of 4 people have problems with fractions

ChadW (Washington)
Posts: 3

Posted:

No. I have been paying for those two years for a "special assessment" that I wasnt supposed to be paying for according to the R.C.W. up until August 2007. I didnt pay the dues nor the special assessment for a year and 2 months (DEC. 15th 2008). I Found that 4,600+ was forwarded from the previous Property Management in March 2008, but no Account Ledger of receipts, or details as what I was billed for.

When I faxed 2 letters, sent two mailed letters, and even e-mailed the Association and the Property Management to have my entire account history printed out and sent to me or presented to me, There is nothing before 2007. I had to track down my unit's previous owner to get a copy of their escrow papers.

GlenL (Ohio)
Posts: 5,491

Posted:

RCW 64.38.045
Financial and other records — Property of association — Copies — Examination — Annual financial statement — Accounts.

(1) The association or its managing agent shall keep financial and other records sufficiently detailed to enable the association to fully declare to each owner the true statement of its financial status. All financial and other records of the association, including but not limited to checks, bank records, and invoices, in whatever form they are kept, are the property of the association. Each association managing agent shall turn over all original books and records to the association immediately upon termination of the management relationship with the association, or upon such other demand as is made by the board of directors. An association managing agent is entitled to keep copies of association records. All records which the managing agent has turned over to the association shall be made reasonably available for the examination and copying by the managing agent.

(2) All records of the association, including the names and addresses of owners and other occupants of the lots, shall be available for examination by all owners, holders of mortgages on the lots, and their respective authorized agents on reasonable advance notice during normal working hours at the offices of the association or its managing agent. The association shall not release the unlisted telephone number of any owner. The association may impose and collect a reasonable charge for copies and any reasonable costs incurred by the association in providing access to records.

(3) At least annually, the association shall prepare, or cause to be prepared, a financial statement of the association. The financial statements of associations with annual assessments of fifty thousand dollars or more shall be audited at least annually by an independent certified public accountant, but the audit may be waived if sixty-seven percent of the votes cast by owners, in person or by proxy, at a meeting of the association at which a quorum is present, vote each year to waive the audit.

(4) The funds of the association shall be kept in accounts in the name of the association and shall not be commingled with the funds of any other association, nor with the funds of any manager of the association or any other person responsible for the custody of such funds.

Studies show that 5 out of 4 people have problems with fractions

SusanW1 (Michigan)
Posts: 5,202

Posted:

You did not pay for 14 months in 07-08, but claim you overpaid in 07?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

HOA's typically don't send out bills. I know ours didn't. That is because like rent on an apartment, you should KNOW to pay the bill. So what receipts are you referring to? The only one's the Management company would have would be the copies of the checks you sent them. They may have copies of notification they sent you that you owed but that is usually be certified mail.

It sounds like your on the hook for some money. The HOA can charge you the late fees, allowable interest, and any legal fees they may have encountered. That is added onto any special assessments or backdues owed. You may need to check to see if you have a lien on your property at this point.

All the Management company can do is show you proof you didn't pay. All you can do is prove that you did or pay up.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Chad,

As others have pointed out, the Management Company works for the Association. They collect the assessments for the HOA. If a management company changes it's just like having an employee change - it's just someone new (the MC) working for the employer (the HOA).

Unfortunately, record keeping is typically only as good as the person keeping them. If there is no proof of payment (journal entry, canceled check, receipt for cash payment, etc.)the general rule is that no payment was made. This rule applies to the IRS, the Bank and your HOA (plus anyone else who is owed money).

If you made the payments, just provide copies of your canceled checks. Most banks keep those records for a long time. If you failed to make the payments, no matter what the reason, you need to pay it. If late fees are attached, you may request a hearing with the board (have checkbook in hand) and request that the late fees be waived. Typically per the CC&Rs (and some State Laws) the Board may not waive the actual assessment.

Tim

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