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AnitaC1 (South Carolina)
Posts: 18
Posted:
We live in a small condo complex (6 units - 3 live-in owners, 2 rentals, 1 weekend/vacation) One of the renters is moving out.

The HOA dues on this unit are approx 10 months behind. Is there any way we can block the leasing of this unit as long as he is behind. The owner/landlord is still making money on his unit, and the complex is paying for their water, common electricity, exterminator, parking, landscape… etc.

We have filed a lien, but we may never see any of it if this goes into foreclosure. Our attorney said there is a very high probability of this, unless the bank agrees to a short sale.

We had the same problem with him last year, but he paid prior to filing the lien. This is a hardship on our small complex when 1/6 fees/revinue/income are ignored.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Anita,

Talk to your attorney and see if the Association could take the individual to court for a judgement to have the rent paid directly to the HOA. Then when the unit is rented out, provide a copy of the judgement to the tenants and calmly inform them that by court order, they are to make rent payments to xyz homeowners association.

AnitaC1 (South Carolina)
Posts: 18
Posted:
Thanks
LarryB13 (Arizona)
Posts: 4,099
Posted:
If the unit is vacant, tape a notice on the door stating that the assessments are past due and a lien has been filed. Any potential tenants will see this and walk away. Once the landlord sees that he cannot rent the unit, he will likely pay up. If he removes the notice, put another one back up.

You might want to turn off the power and water to that unit and state in the notice that those have been shut off until the assessements have been paid.

This may or may not be legal, but it will cost him more in legal fees to find out than it will to pay up.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
No you can't block the rental or enter the property. Does the owner know they have a lien? It should have been done by certified mail and sent to the HOA address and their personal address if known. The lien filed on the HOA property address.

The HOA does NOT own this property and can't interfere with the owner's contracts. I would start pursuing foreclosure process after a year of owing. They only have to pay what they owe to get out of the foreclosure by the HOA. Most may just pay up when they see the HOA being serious about foreclosing. Just do it BEFORE the bank does and do NOT buy the property.

Former HOA President
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By MelissaP1 on 12/03/2012 8:13 PM
No you can't block the rental or enter the property.

That depends on the convenants. The association has no duty to supply water and power to a unit that is not paying for those services and it is unlikely that there is a need to enter the unit to shut of those utilities.

Quote:
Posted By MelissaP1 on 12/03/2012 8:13 PM
Does the owner know they have a lien? It should have been done by certified mail and sent to the HOA address and their personal address if known.

Notice will vary according to state laws. The OP mentioned that they have an attorney and it's a pretty good assumption that he knows how to file a lien and give proper notice to the owner.

Quote:
Posted By MelissaP1 on 12/03/2012 8:13 PM
The HOA does NOT own this property and can't interfere with the owner's contracts.

The HOA does own the common areas and has some control over who makes use of those areas. The HOA has no obligation to supply water, power, parking or other services to those who rent from a non-paying owner.

Quote:
Posted By MelissaP1 on 12/03/2012 8:13 PM
I would start pursuing foreclosure process after a year of owing. They only have to pay what they owe to get out of the foreclosure by the HOA. Most may just pay up when they see the HOA being serious about foreclosing. Just do it BEFORE the bank does and do NOT buy the property.

Once you start foreclosure proceedings you are driving down a one-way street. The association will be obligated to pay its attorneys plus all the court fees with no guarantee that it will recover a nickel. The OP indicated that there is a mortgage lien on the property and those are almost always superior to the HOA liens. Foreclosure on a unit with a mortgage is suicide for most associations.

This is why the association needs to get creative to get the owner paying his obligations.
AnitaC1 (South Carolina)
Posts: 18
Posted:
[This may or may not be legal, but it will cost him more in legal fees to find out than it will to pay up.]

[Does the owner know they have a lien?]

HaHaHa…… The owner/landlord is an attorney. He knows what he is doing. We are a bit leery of getting too creative on our own because if we do something illegal we would be hurt far worse than losing 1/6th of the HOA fees monthly. I went to the courthouse, through the public records, found several of this LLC’s properties (66%) have liens from their HOAs, and this year’s taxes have not been paid, totaling to over $35,000 and is growing each month. Mid-October there were no foreclosures in progress.

[The HOA has no obligation to supply water, common electricity, exterminator, parking, landscape]

The water shut off is inside their unit, or at least no one knows if there are exterior valves. Each unit has it’s own electric meter and there is one for the common areas. I guess we could block the use of their parking spot and trash services. We finally got the pests under control from the previous tenants. It would be harmful for the complex to ban the exterminator.

I really appreciate the responses. Any ideas we can work through before approaching out attorney could save us $$$ in the long run.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Simply foreclose on him. No need for lien, fines, etc. Do not mess with his water, electricity, parking, etc. Just foreclose and get someone in there who will pay.
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By AnitaC1 on 12/03/2012 3:03 PM
We live in a small condo complex (6 units - 3 live-in owners, 2 rentals, 1 weekend/vacation) One of the renters is moving out.

The HOA dues on this unit are approx 10 months behind. Is there any way we can block the leasing of this unit as long as he is behind. The owner/landlord is still making money on his unit, and the complex is paying for their water, common electricity, exterminator, parking, landscape… etc.

We have filed a lien, but we may never see any of it if this goes into foreclosure. Our attorney said there is a very high probability of this, unless the bank agrees to a short sale.

We had the same problem with him last year, but he paid prior to filing the lien. This is a hardship on our small complex when 1/6 fees/revinue/income are ignored.

Anita

I think you have several options here:

1. Send him to a collection agency, however, based on what you have told us he doesn't seem to concerned with his credit.

2. Examine what amenities you are legally allowed to cut off and do so, sometimes sanctions are helpful.

3. Do as Tim suggested and see what judgement you can get in court against him, whether it is just a simple judgement of if you can get rent redirected to you that is even better.

4. Foreclosure is always an option.

I wouldn't pay much attention to the fact that he is an attorney, sometimes those people are just arrogant enough to think nothing can happen to them. That fact shouldn't sway how you proceed, he may try to exert his legaleze on you but as long as you are following the advice of your attorney your going to be ok.
BradP (Kansas)
Posts: 2,640
Posted:
One other thing...i would not post anything to the door of this unit, your communication needs to strictly be with the listed address of the owner. Posting something that a potential rentor might see is not the way to go.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By AnitaC1 on 12/04/2012 5:02 AM

HaHaHa…… The owner/landlord is an attorney. He knows what he is doing. We are a bit leery of getting too creative on our own because if we do something illegal we would be hurt far worse than losing 1/6th of the HOA fees monthly. I went to the courthouse, through the public records, found several of this LLC’s properties (66%) have liens from their HOAs, and this year’s taxes have not been paid, totaling to over $35,000 and is growing each month. Mid-October there were no foreclosures in progress.


Anita,

The State Bar licenses attorneys. (This is not to be confused with the Bar Association, which is a club for lawyers.) Based on a limited personal experience, the State Bar of South Carolina appears to be fairly aggressive. It may seem odd, but I would not hesitate to file a complaint with the State Bar about the landlord/attorney.

Other states have held that an attorney who is involved in other pursuits is still an attorney and must behave in a manner befitting the legal community:
"A lawyer takes his or her license along when engaging in any type of activity, In re Pappas, 159 Ariz. 516, 521-22, 768 P.2d 1161, 1166-67 (1988), and does not have the luxury of shedding professional accountability at whim.   Thus, for example, the supreme court has disciplined an attorney for “slip-shod and sloppy accounting practices,” even though the conduct occurred while the attorney worked in an administrative, government job.  In re Grimble, 157 Ariz. 448, 452-53, 759 P.2d 594, 598-99 (1988);  see also In re Lurie, 113 Ariz. 95, 97-98, 546 P.2d 1126, 1128-29 (1976) ( “We state at the outset that it makes no difference whether [the lawyer] was acting as an attorney or as a businessman.   There is nothing to prevent an attorney from engaging in business or other activities, but when he does so he does not abandon his professional ethics if he wishes to remain a member of his profession.”)." From Romley v. Arpaio, para. 15, http://caselaw.findlaw.com/az-court-of-appeals/1340762.html

Your landlord/owner/attorney sounds like one of those jerks who has used his professional license as a sword to inflict injury upon others. The State Bar may have something to say about that.

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