Texas - Delinquent fees (for YEARS)

Started by LindsayJ1 • 5 replies • 1466 views

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LindsayJ1 (Texas)
Posts: 2

Posted:

We have a non-profit corporation property owners' association. Lot Assessments/Fees/Dues have been $10/mo per lot for the last 6 years or so until July 2012, when a $2.50/mo per lot increase - stipulated for road maintenance - went into effect after being voted on at our February 2012 Annual Meeting (quorum & majority per state statute, by-laws, and Covenants, Restrictions & Lot Assessments (Exhibit A of By-Laws - all filed at County Courthouse as they should be).

We have a situation where a member that has been here for years, residing here full time (this is a lake community), purchased a couple more lots several years ago. He initially paid the fees/dues on these 2 lots, then stopped after a month or three - his excuse is that he didn't have clear title until recently (within the last 3 months)- however he IS, and has been, the recorded owner at the tax office; has been paying the property taxes every year since he 'purchased' the lots. The dues/fees on these two lots are now well over $6500, the Board has requested several times nicely that he pay these delinquent fees/dues, but he still refuses; stating that since he didn't have clear title he is not responsible for the delinquent fees/dues(why he bought and paid for lots he couldn't get clear title to, I have no idea =S).

So, in short, is he responsible or not?

JohnB26 (South Carolina)
Posts: 1,569

Posted:

is his present clear title 'retroactive' ?

if so, he's responsible

if not, seek legal advice from an actual attorney at law

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Lindsay

I say he is responsible.

What I might do before I start with the lawyer is send him a letter requesting the back dues along with any documentation you have that he has been paying the taxes thus the association considers him the owner.

Politely say that if not made current within 30 days the association (not you..do not be the heavy) will be turning the information over to the association attorney for collection.

Call his bluff but give him one more chance before you pounce.

Hope this helps.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Lindsay,

It sure looks like he has exercised the rights and responsibilities of ownership by paying taxes. Plus he did pay assessments for a period of time. I'll bet he never said a word about title problems to the HOA until the association demanded payment.

This sounds like some hot-shot wheeler dealer looking for a free ride. He knew the county would take his lots away if he did not pay taxes but maybe he thought he could bluff the HOA. Raise the ante and call his bluff. Threaten to pursue a collection action against him and let him know what his costs will be if he loses. If he feels someone else owes the money he can file a cross-claim against that party. Be sure to remind him that he does not have clear title to his property until the assessments are paid in full.

LindsayJ1 (Texas)
Posts: 2

Posted:

Thanks for the responses, if nothing else they make me feel better ;)
Question: How does one determine if the title is 'retroactive'?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Lin

I would not try and define retroactive meaning do not get in a legalese discussion. Do not try and play lawyer. Simply state in the letter that as he has been paying the taxes on both lost since so and so date the BOD considers him owing dues on both lots since so and so in the amount of $XX.

Now he may well challenge your decision and if so, turn it over to your lawyer for collection. Let them do the legalese.

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