HOA Prebilling services before rendered

Started by MarkB31 • 11 replies • 217 views

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MarkB31 (California)
Posts: 4

Posted:

nHello our newly re organized community has integrated the HOA portion with the golf course and are now prebilling a month is advance for the monthly golf course membership. What i mean by this is that they bill the October membership dues in September yet other courses bill at the close of the month for all services, purchases, etc... the first day of the month for all transactions that occurred in the previous month. My question is, are they lawfully able to pre bill as I mention above. Thank you so much for any help with this matter.

TimB4 (Tennessee)
Posts: 21,059

Posted:

For legal, you will need to consult with a local attorney.

It is not uncommon for membership facilities to be billed early but due on the first of the month.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

What is it with all this is it legal stuff? Anyways it sounds like an accounting method being used. You do not mention the late time line. What date is it considered late?

I do not see anything illegal just a different process of how things are collected and paid for.

Former HOA President

MarkB31 (California)
Posts: 4

Posted:

sarbane oxley makes pre billing of services unlawful...thus most clubs have updated there process to be compliant of this...

MarkB31 (California)
Posts: 4

Posted:

Quote:

Posted By MarkB31 on 10/11/2023 11:31 AM
sarbane oxley makes pre billing of services unlawful...thus most clubs have updated there process to be compliant of this...

The late fee has nothing to do with the early billing as that is a separate issue

AidylP1 (California)
Posts: 173

Posted:

Pre-billing is a common practice nationwide for any kind of service.

MarkB31 (California)
Posts: 4

Posted:

Pre billing with an expected pay date within the month of prebilling is totally against sarbane oxley...services need to be rendered...thus pre billing as you say is fine, a due date with no services provided is not

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By MarkB31 on 10/11/2023 11:31 AM
sarbane oxley makes pre billing of services unlawful...thus most clubs have updated there process to be compliant of this...

Can you provide a link to a discussion of your claim that sarbane oxley prohibits pre-billing of services?

I googled and could not find anything.

Just curious.

TerriS6 (California)
Posts: 3,284

Posted:

Quote:

Posted By ElleN on 10/11/2023 3:35 PM

Posted By MarkB31 on 10/11/2023 11:31 AM
sarbane oxley makes pre billing of services unlawful...thus most clubs have updated there process to be compliant of this...

Can you provide a link to a discussion of your claim that sarbane oxley prohibits pre-billing of services?

I googled and could not find anything.

Just curious.

I thought it applied to public organizations. Our board hasn't done any road work for 4 years but keeps billing us anyway and now wants to increase assessments by 58%.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Gee I wonder why they do that? Oh yeah to fund the reserves to pay for the repairs which will be not be affordable if your HOA doesn't keep contributing till when needed. Sure hate to here a Million dollar last minute project to pay for than one that has been funded over many years to cut down costs... So useless isn't it? Should sue them for it.

Former HOA President

MarkM19 (Texas)
Posts: 1,459

Posted:

MarkB,
Why are you asking the question if you already have the answers? I am not a lawyer thankfully, but I would think that a private club can make their own rules unless you have proof they can't.

ElleN (Idaho)
Posts: 4,420

Posted:

Quote:

Posted By TerriS6 on 10/11/2023 4:06 PM
Our board hasn't done any road work for 4 years but keeps billing us anyway and now wants to increase assessments by 58%.

?

HOA reserve funding by its very nature requires that HOAs bill in advance.

But please, I want to talk about the OP's situation, not yours. If you want to talk about your HOA's roads, start a new thread.

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