HOA back billing by developer - Legal

Started by HP2 • 4 replies • 220 views

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HP2 (North Carolina)
Posts: 2

Posted:

Our developer hasn't billed our community the yearly HOA fee in 3 years. Can they back bill us for the years they didn't bill us? There is nothing in the Covenant that would address this issue. We don't have a Board as 75% of the community has not been developed/sold as of yet. Is there a legal precedence allowing or disallowing back-billing?

TimB4 (Tennessee)
Posts: 21,059

Posted:

I would think that they could.

The CC&Rs created the annual assessment requirement/debt to you.

The fact that you didn't receive a bill each year did not excuse you from the requirement/debt you agreed to pay.

I have to add that failure to pay assessments can result in legal issues.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Also see:

North Carolina Statute of Limitations on Debt from a debt consolidation company.

If you scroll down the website you will see the statute of limitations on written debt is 3 years along with the limitations on other debt.

HP2 (North Carolina)
Posts: 2

Posted:

Thank you for the info. We aren't trying to get out of paying, we just want to know what to possibly expect in the future. Thanks again.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Assessments are typically due annually and many allow monthly payments.

For the future, as the annual date nears, email the HOA/developer and ask about the assessment for the year.
This way, you won't have a 3 year amount due at one time.

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