Legal Question in Real Estate Law in Texas
Townhouse Owners Rights?
Our townhouses are in the price range of 80,000 - 100,000$. We are not in the water front community. When we bought this property over 12 years ago, the association fee was 125$ a month. The fee has been raised yearly by the Townhouse Administration Board, the home owners were only informed a couple months before the fiscal year and have no choice! The current fee is 215$ a month.
Last week, we received the letter from the Townhouse Administration Board to inform us that the association fee will be raised to 305$ from this October which is the beginning of the fiscal year. The decision to raise the association fee was always made by the Administration Board without consulting the tenants. The plan for next year maintenance is almost the same, but the insurance cost is higher, however.
The Board sent us the document on spending only several times couple years ago then has stopped. We have not received the proof of insurance for years.
The questions are:
1. Can the home owners do anything to change the Board decision?
2. Do we have any Legal right not to pay the new high association fee until the Home Owners Yearly Meeting on the last week of the coming October?
We sincerely thank you for your prompt assistance.
1 Answer from Attorneys
Re: Townhouse Owners Rights?
The board has the power to raise the dues without consulting the other owners if it was given to them in the Condominium Declaration and Regime. It probably was. However, they do have a responsibility to provide an annual accounting to the owners. The board consists of other owners who represent YOUR interests as well as their own (as far as the condominium is concerned - not personally). Failure to act prudently would be negligent and exposes the board to liability. Chances are the increases fees are reasonable due to increased common area utility bills and increased post-Katrina insurance rates. You are given the reasonable right to audit the books and I encourage you to do so if you are concerned. When a vacancy occurs on the board, you may want to run for election.