Can I legally withhold condo fees due to mismanangement?

[scott1ct]

What is the name of your state? MA

I am in a new condo complex where the builder is the sole operator of the association until the development is completed. All the owners recently got a bill for condo fees backdated to move in dates with no explanation of where the funds were going or how the amounts were determined. Upon inquiry we got a 5 line explanation of the amount he spent for insurance, lawn and snow plowing. No real proof these were the true amounts I called the insurance company and got a premium rate far less than he claimed he paid.
I don't feel confident handing over my money to someone who can't account for where my money is going. Also, the grass and plowing he is doing is limited to the areas around his unsold units ignoring the rest of the complex.

What are my rights to dispute this? I've already requested receipts for everything last week as well as proof of a bidding process for services (could he just use his friend and inflate the bills and split the difference?)

Can I put my fees into a separate trust from him and decline to hand it over until he can account for everything or turns over assoc control?

I just want to avoid a legal action being taken as a lien on my property if he truly is stealing from the fund or overcharging to line the pockets of his business friends. Multiple units are in the same boat.

Thank you.

sebastian

 

[danno6925]

Lawyer time

Your problem is fairly complex, and has several pitfalls. One, you signed on to be a member of the Condo Association when you closed on thr property. Two, as a member of said asociation, you put yourself at their mercy regarding fees and the payment thereof. Three, you and your fellow condo owners need a real estate lawyer, as in yesterday.

To offer a (very) simple answer to your question:
No, you can't hold back your payment because you don't want to pay the bill. He WILL put a lien on your property and potentially ruin your credit rating.

The longer answer is that you **might** be able to place the funds (make sure you get every single owner in the association to go along with you to make it as painful as you can for the builder) into a non-interest bearing escrow account. Send this builder guy a letter CRR stating you're gonna keep his money until he produces proof of every dime he spent. I'm sure you'll get a reply in no time. As to whether or not the response is genuine is anyone's guess.

Either way, get a lawyer involved. It sounds like you need one and this is what they're for.

 

[HomeGuru]

What is the name of your state? MA

I am in a new condo complex where the builder is the sole operator of the association until the development is completed. All the owners recently got a bill for condo fees backdated to move in dates with no explanation of where the funds were going or how the amounts were determined. Upon inquiry we got a 5 line explanation of the amount he spent for insurance, lawn and snow plowing. No real proof these were the true amounts I called the insurance company and got a premium rate far less than he claimed he paid.
I don't feel confident handing over my money to someone who can't account for where my money is going. Also, the grass and plowing he is doing is limited to the areas around his unsold units ignoring the rest of the complex.

What are my rights to dispute this? I've already requested receipts for everything last week as well as proof of a bidding process for services (could he just use his friend and inflate the bills and split the difference?)

Can I put my fees into a separate trust from him and decline to hand it over until he can account for everything or turns over assoc control?

I just want to avoid a legal action being taken as a lien on my property if he truly is stealing from the fund or overcharging to line the pockets of his business friends. Multiple units are in the same boat.

Thank you.

sebastian

**A: read your condo docs. You must pay the fees as required, then litigate.