Not notified question

I have seen several question on this forum about notification associated with fees. Let me start by saying, I am not disputing the fees or the obligation to pay the fees. I closed on a condo in late December 2013. The condo was a Fannie Mae foreclosure and every thing was handled electronically. I inquired about the association and was not provided any information. I assumed (wrong) the association would contact me and provide a coupon booklet or address for payment and the exact amount of the dues. I rented the condo out and the tenants are very good about giving me any mail that comes addressed to me. I heard nothing from the association. Yesterday, my tenants notified me of mail and I promptly went to pick it up. It was a letter from a collection attorney stating that I owed dues from June until October (now), attorney fees, and late fees. I met another property owner a month ago due to an issue with my tenants. I reached out to her on any information about the COA and she provided me with the company that handles the association and informed me the company was new and took over in October of 2013. I contacted the company and explained my willingness to pay the dues in full but I only disputing the legal fees and late fees and I would drop a check off this morning. I was told they couldn't do anything because my file was already at the attorneys office and I could only deal with him. I caused such a ruckus I was finally forwarded to someone (who never asked for my address or name) and was told they sent me a letter every month. I said that's impossible. I checked the mail every week for two month myself. She then told me again, I would have to speak to the attorney. The paralegal for the attorney called me and really insulted me. I was upset but I kept my cool although he was not helpful at all. Eventually the conversation cooled off to the point where he said he would find out what he could and get back with me. He came back and said the management company sent me a letter back in August stating they had the wrong owner listed and had previously contacted the former owner regarding the fees, the balance had been paid up until May, and I was responsible for the fees thereafter and I had 30 days to respond. I never received said letter. The paralegal emailed the letter to me. The address on the letter is missing the unit number, hence why I never received it. He said it doesn't matter and it was my responsibility to figure it all out when I closed and they were not going to reduce my fees. I am now trying to find out who the COA board is and discuss the matter with them, I am getting nowhere. What are my rights and is it worth it to get my attorney involved? Just out of principle I would rather pay my attorney than the collections attorney.

Stacy,

Since the attorney, the association, and the management company can all cause you a great deal of grief, I would strongly urge you to at least seek legal advice before going any farther.

From what you describe it appears that the association failed to perform an act required of it by law and their agent, the management company, compounded the problem by mailing notices to either the wrong party or to the right party with an incomplete address.

Stacy really, you purchased a condo in Dec 2013. Never paid any monthly assessments and didn't make any inquiries? Pay up and consider this an expensive lesson. By Fl statute if the previous owner owed any assessments you would be on the hook for them too. (Bold added):

718.116 Assessments; liability; lien and priority; interest; collection.—
(1)(a) A unit owner, regardless of how his or her title has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments which come due while he or she is the unit owner. Additionally, a unit owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the owner may have to recover from the previous owner the amounts paid by the owner. For the purposes of this paragraph, the term “previous owner” does not include an association that acquires title to a delinquent property through foreclosure or by deed in lieu of foreclosure. A present unit owner’s liability for unpaid assessments is limited to any unpaid assessments that accrued before the association acquired title to the delinquent property through foreclosure or by deed in lieu of foreclosure.

Larry,

I did miss that part. That could certainly be something to point out to the Board as to why they should work out a compromise. However, it still doesn't mitigate the fact that it was the new owners responsibility to inform the Association of her current address (which was not the property within the Association).

Additionally, it doesn't answer why the OP didn't contact the Board (or at least try to find out how to contact the Board) after 10 months. I suspect that over the last 10 months there have been newsletters distributed to residents that talked about assessments. It appears that the tenant didn't think that these were important enough to pass on to the OP.

Thank you for all the helpful replies. Yes, I did inquire about the COA and received no information. Was it something I kept asking about? No. I do not dispute the original fees and will pay the balance minus the attorney fees and late fees. No, there were no notices of meetings or other communication from the COA. I can tell you I was on the look out for them to become involved as there are several unacceptable things that need attention. No, I didn't have an attorney at closing, my agent handled it all.

For future references and to avoid this scenario again when I purchase another property, if I don't get the association information at closing what other things can I do to find out who they are?

Tim - Usually our PM gets notice in the settlement instructions from the attorney. We have talked about the fact that in Virginia that all real estate contracts have HOA Disclosure clauses where they seller must provide the documents to the buyer within a certain time frame and the buyer must sign off on a receipt showing that they received them.

It's hard to believe that this sort of thing happens these days but I agree, that it's the responsibility of the new owner here. The HOA doesn't have any way of knowing that there is a new owner and it's not the HOA's responsibility.

Most states consider it YOUR responsibility to be "informed". That is why they make the documents of Article of Incorporation and Convenants and Restrictions PUBLIC documents. That puts all parties except for the buyer responsible. However, many states require the seller give over the documents at closing. In your case, there was not such "previous owner" when you bought it from foreclosure. Your agent should have done their due diligence but NOT responsible for giving you the HOA documents.

Now do I agree with this? No. Is it the way the system works and is set up? Yes. So don't put words in my mouth or post that I agree on this. It's just the FACTS. The FACT is that YOU the buyer is responsible for finding out HOA existence, paying dues, and following/finding the rules.

Hate to tell you but you are on the hook for the legal expenses. Most likely even more so for them than the back dues. You could negotiate the dues and late fees due to the mishandling on the HOA part. They are supposed to mail the HOA address first and foremost. Any other addresses are "courtesy". You are on the hook for the legal fees because it cost them money to hire this service. It's a fee and cost that could hold up in court for damages if pushed.

My suggestion is to pay the bill now before they sue or add additional expenses. It sucks and I agree. Take this as a learning experience and don't let it happen again. Sorry but have to be honest and up front that you are on the hook here no matter how much hate it for you.

I have to agree that this is very significant.

Yes, Stacy owes all the assessments and normal late fees.

However, before the association gets into real collection and starts racking up legal fees, the association has to notify the owner. Most collection policies require the association to notify the owner at every stage.

Stacy was receiving mail at the her unit through her tenant, but they never got the address right. The management company, on behalf of the association got the address wrong and still let it go ahead. Then the law firm also blew it.

Stacy, you can ask the board for their written collection policy.