getting forced to pay a capital contribution and a reserve contribution

Started by JeremyS4 • 6 replies • 3007 views

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JeremyS4 (New Jersey)
Posts: 2

Posted:

hi. i'm new here and i'm not sure if i'm in the right forum but i have no one to ask this. my lawyer doesn't really help.

my condo i'm moving into is charging me for two contributions for the same amount. i'm so confused. i have never heard of TWO contributions.

is this normal? the $ is three times the monthly HOA.

1. One time non-refundable, non-transferable Capital Contribution for working capital in the amount of $1,388.61

2. A SEPARATE CHECK for a one-time non-refundable, non-transferable Contribution for Reserves for Deferred Maintenance and Replacement of Common Elements in the amount of $1,388.61

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It is odd they are both the same amount. I would ask if that is a mistake. It's understandable what it is for but think there is some confusion on the labelling. They almost seem like the same but with different wording. Is there a reason can not ask? Who gave you this information?

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jeremy

Do ask but it is not uncommon to have a one time, new owner "sur-charge".

JeremyS4 (New Jersey)
Posts: 2

Posted:

thanks for the replies. yep i don't mind a one time contribution. i hear this happens a lot. i was confused though when i'm being asked for two different contributions.

JamesG11 (Florida)
Posts: 118

Posted:

What do the governing documents say?

If the governing documents authorize such obligations, then you need to pay them (assuming they have been properly calculated and lawfully levied).

If the governing documents do not authorize those obligation, then you aren't obligated to pay them.

Any decent attorney should be able to answer your questions and provide you with clear guidance here. If yours cannot, it's time to change attorneys.

Good luck!

DouglasK1 (Florida)
Posts: 2,046

Posted:

The validity could also determine when this was disclosed.

In Florida, associations are required to provide an "estoppel letter" detailing any money due, violations, etc. on request of the seller. In reality, the closing agents request them on behalf of the seller and this info is disclosed to the buyer no later than closing. I don't know what NJ law says or what is typical there, but if the closing agent asked for some kind of statement, the fees weren't disclosed, and the association asked for them after you closed, you might have a case for not paying.

Escaped former treasurer and director of a self managed association.

JamesG11 (Florida)
Posts: 118

Posted:

Douglas is correct in his observations re: estoppels (at least in our home state of Florida).

I interpreted your initial post to indicate that you had not yet closed/"moved in" to your NJ condo; if you have in fact closed, then the estoppel should be the dispositive document - provided that NJ law is identical to FL law on the subject.

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