Refund of Excess Monies

[PSUFlorida]

What is the name of your state? Florida

Recently my condo association's board voted to return (refund) excess monies that were accrued from monthly assessments ('dues') from the 2006 budget. Our condo docs stipulate the formula for breaking down each owner's share of any liability or asset of the association, which the board said they'd use. My question is, who does this refund go to, the owner of record of unit X when the refund was approved by the board, or the owner who owned a unit for a portion of the 2006 year but sold before the refund was approved? There's nothing in our condo docs about such an evolution specifically.

[You Are Guilty]

Originally Posted by PSUFlorida

What is the name of your state? Florida

Recently my condo association's board voted to return (refund) excess monies that were accrued from monthly assessments ('dues') from the 2006 budget. Our condo docs stipulate the formula for breaking down each owner's share of any liability or asset of the association, which the board said they'd use. My question is, who does this refund go to, the owner of record of unit X when the refund was approved by the board, or the owner who owned a unit for a portion of the 2006 year but sold before the refund was approved? There's nothing in our condo docs about such an evolution specifically.

Short answer: it depends.

Long answer: Unless the bylaws/declaration spell out the formula or rules on how such a refund is to be made (probably unlikely, but you'll have to read them yourself to know for sure), the Board is free to determine the method itself. Best guess would be that they refund to money to whomever actually paid it, pro rata for those who sold during 2006. Should they choose another method, you can always try to challenge it, but unless this is a very serious refund, it's likely not worth the time to attempt to litigate it.

In summary, read your condo docs, that's the only place the answer could be.

[IndianaOwner]

The refund should go the unit owner at the time of distribution, not meeting decision date. It was up to the seller to settle that up at closing if that was a concern for them, otherwise it goes to the buyer.

[You Are Guilty]

Originally Posted by IndianaOwner

The refund should go the unit owner at the time of distribution, not meeting decision date. It was up to the seller to settle that up at closing if that was a concern for them, otherwise it goes to the buyer.

So you're saying that someone who sold a unit on December 30, 2006 isn't entitled to anything on a 2007 distribution and should have predicted that the Board was going to issue a refund sometime in the future? Or did I misread your reply?

[Paddy Reagan]

It's likely that the accountant who is responsible for your condo finances will cut a check to the registered owner of the unit at the time of the distribution. Once estoppel information has been provided to the attorney or title company and closing has taken place there is no "look back" provision. The closing statement is the final opportunity for such prorations.

An exception could occur if a sale is pending and the buyer/seller agree to a specific distribution formula.