Legal Question in Real Estate Law in California

real estate

special assessments in condo's. i have been told that a special assessment is uneforacable and cannot be charged penalties, interest or late fees. please explain


Asked on 4/07/09, 7:11 am

3 Answers from Attorneys

George Shers Law Offices of Georges H. Shers

Re: real estate

If the HOA Board votes properly for the special assessment i believe it has the powere t charge everything you list. There is I thnk a dollar limit. You need to ask whomever told you tha the HOA can not do so to cite to you facts and law supporting his position. Just because someone tells you something, especially when it seems illogical, does not make it so.

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Answered on 4/07/09, 10:22 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: real estate

Special assessments generally are enforceable. This doesn't mean this particular one that you're writing about is enforceable. Some attempts to assess may exceed the powers of the association or board. You should review the owners' contract and the bylaws to see what assessments are permissible, and when and why.

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Answered on 4/07/09, 11:22 am
Bryan C. Becker Your Lawyer for Life.

Re: real estate

Your association CC&R's and by-laws will address how special assessments are treated, re: late fees, penalties etc. Typically they are treated by the CC&R's the same as regular assessments, i.e., monthly dues.

As an FYI, regarding the validity of the enactment of the special assessment:

Paraphrased Civil Code Section 1366(b)): Special Assessments. Under California law, and as reasonably required by need, the Board of Directors may for any fiscal year impose special assessments for capital improvements or other necessary expenditures which in the aggregate do not exceed five percent (5 percent) of the budgeted gross expenses for that fiscal year. For any special assessment that exceeds five percent (5 percent), the Board must obtain the approval of a majority of a quorum (the "quorum" being more than half of the Members) of the Members at a duly convened meeting or by written ballot where a majority responds, except in an emergency situation as defined by Civil Code section 1366 where these limits do not apply.

Regards,

Bryan

877.201.8728

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Answered on 4/07/09, 1:05 pm


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