Shared Spaces: Legal Matters ; Condo Boards Should Be Prepared for Defaulters

Summary

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Condominium associations obtain the funds necessary for their operation primarily through the annual common expense assessment imposed on unit owners. The assessment normally is payable monthly. Although our law firm, which represents more than 100 community associations in New Jersey, has not yet noticed an increase in the number of unit owners defaulting on their payments, associations can expect that this will occur if the current economic difficulties continue.

According to the Dallas-based Associa, which represents 7,000 community associations in 26 states delinquency rates on dues are estimated to reach 5 percent, up from an average of 2 percent.

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Extract

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Shared Spaces: Legal Matters ; Condo Boards Should Be Prepared for Defaulters

Since any deficit burdens an association's remaining unit owners, associations should be diligent in their efforts to collect arrears from delinquent owners. Owners, in turn, should be aware of the remedies their association should pursue against delinquent owners, and of the adverse conse...

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