Tenant not paying condo dues!

9/14/2010:

What action can you take on a delinquent condo owner?

One Hoboken411 reader lives in a building where one particular unit owner hasn’t paid their condo association dues in ages – and is looking for advice.

“I am looking for advice from fellow Hoboken residents. I currently am part of a eight-unit condo building in Hoboken. The association has had an ongoing problem with one owner who feels that he does not need to pay his homeowners association monthly maintenance fee or any assessments that comes up.

He currently owes the association over $12,000 (this included monthly dues, assessments, legal charges and late fees).

We have had to dip into our pockets on more then one occasion to cover expenses due to his delinquency. We have filed a lien against him (and filed an updated lien recently to reflect new amount owed) which has accomplished nothing.

He currently has a renter in there now, so I know he is at least collecting rent from this tenant. We have sent certified letters and so on. I personally have never met the guy as his brother was occupying the unit at that time when I moved in and who has since moved out I have lived in the building for over 3 years and he has not paid a dime to the association since I moved in. I actually think he has never paid a dime at all since buying the unit. I am under the impression that he purchased this unit and others in the area during the housing boom for a quick flip and resell which obviously didn’t work out for him.

Does anyone have any suggestions, advice on what we can do besides filing the lien? I find it impossible that he can get away with this. We, as an association, are very frustrated. I am also curious to see if there are any other associations in the area that are in a similar situation.

Sincerely,
Frustrated on Monroe Street

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33 Comments on "Tenant not paying condo dues!"


Member
5 years 4 months ago

Hire a lawyer and get a lien placed on the property.
A judge may be able to put a freeze on the owners bank account to help collect some of the money.
At the very least, a lien on the property gets you in line for payment when the person attempts to sell the property (or goes bankrupt). Keep in mind that you’re always in line behind the government (taxes) and any other lien holders that may have a claim to the property (1st mortgage, 2nd mortgage, etc).

Member
5 years 4 months ago

Shut off his water, gas, and electric. Tell the tenant why this is happening. I bet he pays his dues real quick when he starts losing 2-3K a month. If that does not work you could also ammend the Condo rules to disallow renters if the other 7 people agree and prevent him from renting. [quote comment=”197322″]Hire a lawyer and get a lien placed on the property.A judge may be able to put a freeze on the owners bank account to help collect some of the money.At the very least, a lien on the property gets you in line for… Read more »

Member
bornandrazedinhobo
5 years 4 months ago

They won’t be able to do this being the bills would be in the condo owners name……two options are get everyone together in the building and file a class action case against the owner for the back money plus legal costs……it can be done in small claims up to $14,000. If the property as a whole had received maintenance and the owner benefited from this and it exceeds up to about $500 or $800 you can then file a Theft of Service Criminal Complaint for services rendered that were not paid for. That may get them into Criminal Court and… Read more »

Member
5 years 4 months ago

You can absolutely get a lien on the property that isn’t tax related. The simplest answer to this question is to get a lawyer who knows how to deal with these things. They will file a lien, make the appropriate attempts to contact the owner, sue if necessary, and deal with getting the courts to have accounts frozen and/or wages being garnished. You want the lien in case the court can’t find any accounts to freeze or wages to garnish. It also prevents the owner from selling the property without paying the association back what is owed. H411 – P.S.… Read more »

Member
bornandrazedinhobo
5 years 4 months ago

In NJ the court will not issue a property lien for civil lawsuits…….they can issue a lien against the owners vehicles, suspend their DL and Veh Reg, do a bank levy, and obtain personal property from inside the location through the Sheriff’s Dept for a Sheriff’s sale. I brought the issue up about a property lien before when I had sued civilly and for some reason in NJ the courts will not do it. Out of state some states will go after the property….. I’m sure the owner would not even answer an information subpoena if issued one but the… Read more »

Member
5 years 4 months ago

Gotcha… Maybe it was really a bank levy, even though I was told it was a lien. From the situation I was involved in, they did locate a bank account and the court put a freeze on a portion of the account that would cover the amount that was due. The court didn’t actually seize anything, but had the bank freeze that money until there was a settlement or a judgment. In our case, the owner decided to pay back what was owed, including legal fees and interest.[quote comment=”197340″]In NJ the court will not issue a property lien for civil… Read more »

Member
xxrjxx
5 years 4 months ago

I don’t understand what you’re saying. In our association, we have liens on ALL of the units associated with members who have not paid outstanding balances owed. Are you stating that this is not the case? If so, you are not correct. Not only can you pursue a lien for outstanding balances, ultimately the association CAN foreclose on the unit. Before you get to that point, you can pursue a court judgement to have any tenant rents directed to an escrow account in order to satisfy outstanding balances. Better double check your sources-you may have had a situation that worked… Read more »

Member
Rise From The Ashes
5 years 4 months ago

Inbredandraisedinhobo likes to talk about matter that he has little knowledge. I think he read the applicable law on the back of his how to be a security guard at C-Town manual. [quote comment=”197381″]I don’t understand what you’re saying. In our association, we have liens on ALL of the units associated with members who have not paid outstanding balances owed. Are you stating that this is not the case? If so, you are not correct. Not only can you pursue a lien for outstanding balances, ultimately the association CAN foreclose on the unit. Before you get to that point, you… Read more »

Member
bornandrazedinhobo
5 years 4 months ago

Only inbreeding Rise comes from your parents which is why your so stupid and talk out of your ass instead of your mouth and speak about topics you have zero knowledge of….again Rise how many child abuse cases have you prosecuted or dealt with and name the cases you allege to have prosecuted regarding cops? You afraid Rise that you cannot back up your statements and hide behind a computer? [quote comment=”197404″]Inbredandraisedinhobo likes to talk about matter that he has little knowledge. I think he read the applicable law on the back of his how to be a security guard… Read more »

Member
bornandrazedinhobo
5 years 4 months ago

If you win a case in civil court in NJ according to the collection of judgements guidelines you cannot place a lien on property…..the balances must be from mortgage, utility, or tax related. It is clear n the collection guideline from the NJ civil courts website.[quote comment=”197381″]I don’t understand what you’re saying. In our association, we have liens on ALL of the units associated with members who have not paid outstanding balances owed. Are you stating that this is not the case? If so, you are not correct. Not only can you pursue a lien for outstanding balances, ultimately the… Read more »

Member
Rise From The Ashes
5 years 4 months ago

Isn’t a note/mortgage a security interest or lien on a property? Call me silly, but I suspect you are sniffing your crazy glue again.[quote comment=”197415″]If you win a case in civil court in NJ according to the collection of judgements guidelines you cannot place a lien on property…..the balances must be from mortgage, utility, or tax related. It is clear n the collection guideline from the NJ civil courts website.

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Member
bornandrazedinhobo
5 years 4 months ago

The only thing I’m smelling is your stupidity Rise…and if you had read my comment as an ace attorney you allege to be there would have been no reason to even reply…..how well did you do on the LSAT’s? Not well huh? [quote comment=”197423″]Isn’t a note/mortgage a security interest or lien on a property? Call me silly, but I suspect you are sniffing your crazy glue again.

[/quote]

Member
5 years 4 months ago

Based on the statutes, it seems pretty clear that a condo association can have a lien and can foreclose on a property based on unpaid maintenance. (You can also get construction liens which are clearly civil and not tax/utility related.) NJ Statute Title 46:8B-21 Liens in favor of association; priority http://tinyurl.com/2cl7d43 Some excerpts: “21. a. The association shall have a lien on each unit for any unpaid assessment duly made by the association for a share of common expenses or otherwise, including any other moneys duly owed the association, …” “f. Liens for unpaid assessments may be foreclosed by suit… Read more »

Member
xxrjxx
5 years 4 months ago

The lien is placed first and remains until the judgement is satisfied. Like I said bnrh, my association is doing it now–we have liens on the units, have gone through the courts for judgements, and have recently advised tenants to pay rents into an escrow account. The balances owed from the unit owners are not mortgage, utility, or tax related. The are for maintenance payments and for fines and late fees associated with same. Your reality doesn’t agree with my reality.[quote comment=”197415″]If you win a case in civil court in NJ according to the collection of judgements guidelines you cannot… Read more »

Member
la-di-da
5 years 4 months ago

Actually the true legal definition of a tenancy includes fee simple ownership…[quote comment=”197338″]You can absolutely get a lien on the property that isn’t tax related. The simplest answer to this question is to get a lawyer who knows how to deal with these things. They will file a lien, make the appropriate attempts to contact the owner, sue if necessary, and deal with getting the courts to have accounts frozen and/or wages being garnished. You want the lien in case the court can’t find any accounts to freeze or wages to garnish. It also prevents the owner from selling the… Read more »

Member
Rise From The Ashes
5 years 4 months ago

Stay with Law Enforcement Columbo – class action? Silly, the association is a legally recognized entity that can sue in its own capacity. [quote comment=”197330″]They won’t be able to do this being the bills would be in the condo owners name……two options are get everyone together in the building and file a class action case against the owner for the back money plus legal costs……it can be done in small claims up to $14,000.If the property as a whole had received maintenance and the owner benefited from this and it exceeds up to about $500 or $800 you can then… Read more »

Member
bornandrazedinhobo
5 years 4 months ago

If that was the case they would have sued instead of going on 411 asking what to do Ass’s………[quote comment=”197346″]Stay with Law Enforcement Columbo – class action? Silly, the association is a legally recognized entity that can sue in its own capacity.

[/quote]

Member
mookie
5 years 4 months ago

1. charge him all the late fees that are allowed via your condo bylaws, including fees on top of fees (ie. each month should be an additional fee on all the months he is late -compounding effect) 2. put a lien on his property 3. Additionally, if you want to get real nasty have your lawyer contact his banks (both primary and possible 2nd mortgage). 4. go to court and have the judge put a lien on the rent s/he is collecting. included with this ruling his/her tenant will receive a notice from The Court that is they do not… Read more »

Member
Rise From The Ashes
5 years 4 months ago

Once you obtain a judgment for outstanding HOA dues you may be able to restrain his bank accounts. Your legal fees will be part of the judgment. You need to actually sue him, not just place a lien on the apartment. You may be able to garnish his wages and have his rent placed in escrow.[quote comment=”197324″]1. charge him all the late fees that are allowed via your condo bylaws, including fees on top of fees (ie. each month should be an additional fee on all the months he is late -compounding effect)2. put a lien on his property3. Additionally,… Read more »

Member
Sidd Finch
5 years 4 months ago

As a homeowner, one has to file a registration with the Rental office in city hall each year whether or not you are renting it out. If they didn’t register their apartment, then they maybe renting it out illegally. Just another venue to pursue

Member
HOBORAT
5 years 4 months ago

Change the locks on all the common doors 💡

Member
rich k
5 years 4 months ago

Going forward, one way to give the association more cover would be to require that all tenant rents go through the association. The tenant writes the rent check to the Association, which then passes through the balance minus the maintenance and other co-op charges.

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