Legal Question in Real Estate Law in Maryland
Homeowners' association dues.
We purchased our home in May 2003. At the time of closing the title company did not have a homeowners' association on record for our development. We received a letter, from a law office, in September 2003 stating that we owned the homeowners' association dues that were assessed in January 2003. We were not the owners in January 2003. We hadn't received a bill so we paid $100 (of the $190 yearly dues) in good faith with a letter asking to speak with either a member of the homeowners' association or the law offices. No one called. There were no dues assessed in January 2004. We sent another letter in July 2004 asking to speak with someone because we still did not recieve a bill. In October 2004 we have received another letter from the law offices stating past due homeowners' association dues. Are we liable for the homeowners' association dues of the previous owner?
2 Answers from Attorneys
Re: Homeowners' association dues.
$190 for a year seems pretty inexpensive for dues for an HOA.
To answer your specific question, the unpaid dues of the prior owner may be regarded as a lien on the property. Therefore, this may give the HOA the right to take legal action against the property, i.e. such as foreclosure, if unpaid. The existence of this debt should have been disclosed and resolved prior to closing on your purchase, but apparently was not.
Obviously, some person(s) made a mistake here, but it is not clear who. I can tell you with a reasonable degree of certainty that it will cost you considerably more than $100 to retain an attorney to help you straighten this out. Unfortunately, without being retained, and having an opportunity to actually review the paperwork involved, I for one cannot give you specific legal advice. Do a cost/benefit analysis, and decide if this is really an issue you want to continue to dispute, or whether it makes more sense at this point simply to pay the arrearage and chalk it up to "lessons learned."
Re: Homeowners' association dues.
You indicate that the development did not have an association of record at the time of closing. Yet you tend to indicate that this is now in question based upon assertions of the HOA's legal counsel.
The type of association may have a bearing upon the obligation as owed, paid or due. Your payment in May 2003 may apply toward the 2004 obligation. Moreover, the amount due for 2003 may rightfully be an obligation of the previous owner. Nonetheless, association dues generally accrue against the titled owner and the association conceivably has a claim. This issue would need to be determined.
If you can show that you notified the association prospectively in regard to the 2004 dues, any action to recover attorney's fees may be legally inappropriate. Any penalty claimed for the unpaid portion of the 2003 fee or for the 2004 fee as is due may be disputable.
A letter clarifying your responsibility and also disclaiming attorney's fees or penalty may be appropriate to the circumstance and such a letter should be provided through legal counsel.
Left unaddressed you may encounter further problem with the association or its attorney of record.
You should seek the advice of an attorney were you have a legal issue. I am available at (410) 799-9002 or by return e-mail.
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