own two homes in neighborhood one on the market

Started by AmieS • 5 replies • 1758 views

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AmieS (Alabama)
Posts: 1

Posted:

If an owner has 2 properties in a subdivision: 1-a HOA has not been established 2- the developer and his sister collect dues once a year. One property has been on the market for over almost 3 years and has reliable renters and the owners of both homes occupy the other property. The renter has paid the $475 dues for the first year and dues are due again. I have been told that the renters should not be responsible for paying. (huge neighbohood with one small pool-promises for the others havent been completed. )Neighborhood developed for 6 years and still no association. Who is responsible to pay the dues? And with the market like it is with the owners stuck not being able to sell, are they really reliable to pay two sets of dues???????

DonnaS (Tennessee)
Posts: 5,671

Posted:

Annie,

Unfortunately, if you own 50 homes in the HOA and even if they are empty, the owner (you) are still responsible for all of the dues. It's in your deed restriction agreement when you signed into being a member of the HOA. You have been fortunate that your renter has paid dues on their unit previously but it sounds like that good luck may be coming to an end. Sorry, but the buck stops with you.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Amie,

Joe Blow, the Ragman, could pay the dues! There is no law which says only the property owner must pay the assn assessments. If the property owner has a renter and it is in the rental agreement that the renter is resp. for paying the HOA assessments, then that's the way it will be.

Are you sure there is no HOA? Because if there isn't then the members would not be obligated to pay assessments. Who do you make your check out to when paying the assessments?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Oops! I should have said the "property owners" would not be obligated to pay assessments. There wouldn't be members either if there is no assn.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Ultimately you, the owner is responsible for paying dues. Renters don't care if you loose your house. That said... you can require the renter to pay the dues if its in your rental agreement, but you would have to keep checking with the HOA to make sure it got paid every year. If they don't want to pay it, that's fine, just increase their rent equal to the price of the dues. Problem solved.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Amie:

There very likely IS an "association" if there are assessments/dues that are being paid/collected. If the developer is still in control, then the association is pretty much in his control, and he and his buddies probably run/control the board of directors.

At any rate, just to clarify Mary's input, if the governing documents specify that dues are required to be paid, that most likely means the owner of the property is responsible for those, but it doesn't matter from where he gets the funds to pay them.

The lot/unit owner cannot legally transfer that responsibility (most governing documents I have read do not give the owner that ability), however that is not to say that the lot owner cannot enter into a personal contract with anyone else so that person then becomes responsible to HIM for paying the assessments.

In other words, it doesn't matter where the lot/unit owner gets the money to pay the dues, but that lot/unit owner is still legally responsible for making sure that the dues are paid.

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