Legal Question in Real Estate Law in Maryland

Policy Resolution and Collection Policy

I am a new homeowner. There are two HOAs for where I live.For the 1st, there is an annual fee. For the 2nd there is a monthly fee.A month after my purchase (May 2001), I inquired w/ the management company because I had not received correspondence for payment remittance.I was then sent vouchers for my monthly assessment.The seller paid the annual assessment for the 2001 calendar year.I paid that annual assessment at closing.I received a notice to create a lien in the mail May 2002 from a law office for unpaid HOA fee for 2002.I received no communication from the Management Company before this time.As a new homeowner I was assuming vouchers were to be sent out when payment was due, in the same manner as the monthly vouchers.(Both Associations share the same Management Company.)That was not done. Now, they have added incredulous fees to my account for collection, administrative, and attorney costs. They are demanding payment totaling $488.32. The annual association fee is $80.I feel I have been slammed.Do I have any recourse? I have sent letters to the attorney explaining,and they continue to barrage me with letters and property postings demanding payment for the incredulous fees.What are my rights? What happened to due process?


Asked on 6/04/02, 11:16 am

2 Answers from Attorneys

Robert Sher Wagshal and Sher

Re: Policy Resolution and Collection Policy

First of all, I suggest you check your by-laws to see what the association must do before it can start imposing penalties and late fees. There should be provisions stating when dues are payable and what the penalties are for late payment. If they haven't complied with by-law requirements, write a detailed letter citing the provisions that have been violated and ask them to rescind the improperly imposed charges. Offer to pay what you actually owe if you do have a legitimate balance--I would even tender that payment to show good faith.

If that doesn't work maybe you could meet with the condo management person in charge of billing to see if something can be worked out. Otherwise they will file a lien against your property and you might end up in a court battle to get it removed.

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Answered on 6/04/02, 12:32 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Policy Resolution and Collection Policy

Clearly you should contest the fee. Review your by-laws to see if there is

any relevant condition over this matter.

Strongly consider contacting the Attorney Grievance Committee of the Maryland Bar, or contact the

Maryland State Bar Association. Your complaint should reference excessive and unreasonable fees.

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Answered on 6/20/02, 9:22 am


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