Mechanic's lien by property manager

Addition to statement:
Of course, there was a certain amount of rebellion among owners but this was quashed rapidly by the PM filing condo liens on the owner's property for delinquencies determined by the PM.

1. Wouldn't be a mechanics lien.

2. 25% must have been approved by your board if PM put out announcement. In some communities, an increase that large would have to be approved by the homeowners. You should get familiar with what your HOA docs say about limits on increasing assessments.

3. PM may be using a bank account in FL. But the account should be in the name of your HOA. Something you should do - You have a right to inspect HOA certain HOA docs - which would include the bank statements. Make an appointment and go see. Again, your docs will tell you what your inspection rights are.

Good luck.

Hey, JohnC46,
Tried to contact the BoD. No response from letters or calls. Why is a "condo lien" filed on a single-family parcel?

Being a non-profit has nothing to do with it. If there was no PM, then a representative of the the HOA would "take your dues money and manage it." Same collection and management occurs whether there's a for-profit involved or not.

NPS. What I meant is that the HOA is a non-profit. However, when a PM is involved they are a PAID company. They aren't non-profit corporation. They are a for-profit business. If the PM has taken over the HOA, then they don't spend their own money running the place. They set the dues at the rate to cover the running costs and their salaries. Which means they can put a 25% increase without a vote from anyone in the HOA if they own it. There is no more owner's input or rights.

Our HOA, if we decided to disband. We would have to be turned over to a Property Management company. Which meant no more voting rights or boards. We had to do whatever the PM told us to do. They owned us and were in charge.

Seems like all you are saying is that costs will go up if the HOA uses outside people because outside people get paid.

I repeat - it has nothing to do with for-profits vs non-profits.

It has to do with relying on volunteers vs paying someone to do what needs to be done.

Unpaid volunteers can work for non-profits or for-profits.

Your distinction makes no sense to me.

It appears the control of the Association is now under the exclusive direction of the PM who states it has a contract! The Gov docs have not been amended.

Board must follow your docs. If docs say more than 5% requires homeowner vote, then that's it.

Board cannot contract your rights away. They don't have the authority.

You might want to check your docs to see what you need to do to call a Special Meeting of the Homeowners.

While all your governing docs are important, AvS, it's probably your bylaws that say how much authority a prop. mgr. can have. There are certain duties that the Board may NOT delegate to the PM. And they also say how directors are elected, how long they serve, etc.

In addtion, reay your HOA's contract with the management co or PM. SOMEone on your Board had to sign it. Contact that someone!

What is a "pho-members meetings," Av? Is it permitted in your Bylaws? How many directors do your Bylaws say you should have? How are elections for directors supposed to be held?

How many condos in your HOA?

Meantime, you must get a copy of the PM's contract with your HOA. Is this PM independent, or does s/he work for a Management Company? Have you by chance googled her/him to see if s/he even is legit?? Or the PM's company name? Or is it simply Tony Martin, Property Manager??? Really??

there are some pieces missing her, Av., and I just don't know what they are?

AvS

Like it or not, did you or did you not send your assessments to where specified to send them?

It appears our BoD has total disregard for Gov docs. A Special Meeting was attempted by petition. The PM intervened and disallowed any special meeting.

The contract with the PM was not divulged. In reading the powers of the BoD in the bylaws, it may,". . . employ a manager, a managing agent, an independent contractor , or such other employees, or agents as they deem necessary, and to prescribe their duties." Without access to the contract prescribing the duties of the PM, only the PM and the person who signed the contract know its provisions.

The "pho-members meeting" is not the issue. The issue is "How can a "condo" lien be filed on a single-family parcel?"

Payments were timely sent to the Treasurer of the Association.

Yes. I have many comments. Thanks for asking.

So basically, you did not send payments to where directed to send them. Am I correct, yes or no?

KerryL1

Without getting to lengthy in explanation, the PM interrupted the petition by having each of the signing members of the petition to sign a document removing their name from the petition as the PM stated on a letter within two weeks of the delivery of the petition to the principal office, on subdivision property, of the Association. The withdrawal document was not revealed by any signatories of the document, the PM, or the Association.

Any meeting called by petition or any other allowed procedure would necessarily require every member be adequately and properly noticed. In order to accomplish proper notice it would be necessary to have access to the members list containing the current contact info of each member. The members list was and is under the control of the PM. Numerous requests have been made for access without results.

1. Does anyone have a copy of the complaint?
2. Can you post a copy of the complaint here?
3. Thanks for suggestion to file FOIA request. Do you think we'll have an answer within a month? 6 months? a year?

From the OP's description of events, MC appointing the BOD etc. I strongly suspect the community is still under Declarant control.

Glenn

SC does not try and define "condo's" , etc. SC does have Rules and Regulations concerning association controlled, multi unit, high rise structures (often called condos) called the SC Horizontal Property Act. This came about because of the building of and building conversions multi unit buildings along the coast/beaches.

This act does not apply to other type associations be they townhomes, stand alone homes, single story multi unit building, zero lot line units, and/or a mixture of such, etc. There have been attempts to implement such for these associations but so far those attempts have died in legislative committees.

JohnC46

"condos" are defined in South Carolina Code Title 27, Chapter 31, Horizontal Property Regime Act. This is an Administrator managed organization formed initially by the Owner of the plot of land the building is sitting on. The deed to the property is a Master Deed with all owners of units, condos, apartments, defined as co-owners causing the development to be defined as a "undivided interest development." The Owner of the Master Deed contracts with the Administrator to manage its property thereby creating a constructive contract with all co-owners due to the "sharing" title with the real estate owner. Here a mechanic's lien for delinquent assessments is allowed and can be filed by the Administrator/Property Manager on the units, condos, apartments, but not on the holder of the Master Deed. Here, the "HPR Act" and other applicable State Codes govern the management of such an organization.

There are no cross-over provisions to a corporation except to require HPRs to comply with applicable South Carolina Code when incorporating. The applicable Code is Title 33, Chapters 1-20 for profit corporations and Chapter 31 for nonprofit corporations. If a subdivision is developed with single-family parcels without co-owner interest in the common areas then it is a "divided interest development." In this situation, the Association has no authority over the private property rights of the single-family parcels due to the lack of a direct contract with the Property Manager for provision of services, etc. to the parcel owner. Thby the Owner of the plot of land the building is sitting on. The deed to the e Articles of Corporation, CCRs, Bylaws and all applicable State Codes govern the management of such an Association.

The exclusive Administrator/Property Manager authority is not provided for in nonprofit incorporated Associations. The management of a corporation, in SC, is under the mandated control of a board of directors who serve at the whim of the members, if a member association, or stock holders. if a profit corp.

I misspoke SC 27-31 does define a Condominium as:

"Condominium ownership" means the individual ownership of a particular apartment in a building and the common right to a share, with other co-owners, in the general and limited common elements of the property;

As we do not fall under 27-31, I have not paid much attention to since initially reading it.

PitA

Also, heard there is a provision in SC Code to challenge the validity of a lien by contacting the Clerk of Court or Registrar of Deeds (wherever filed) where the County officer will contact the filer and, if the filer does not seek judicial support for the lien, the Co. official will remove the lien in 30 days.

Will get back to you with more info.