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If I pay upfront for a year's service, do I have to pay more if the price goes up?

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Racerx123456789

Junior Member
We are on a community well which costs 25$ per month. In January, I paid 300$ for the year. When I paid, I never received a receipt. (As he put it, "we don't give out receipts"...) and it is my bad for not demanding one. The individual managing the well "service" decided the community should hold more $$$$ in the account, as he puts it "a slush fund", in-case the well needs to be replaced. He estimated there should be at least about 20k (extra) in the account. He sent out a letter (after I had paid for the year) asking all the members to vote, and if he did not receive there vote back he would cast it as a vote to raise the rate. I just received an email from him admitting that I had paid thru the end of the year, but because of the new rate change (as of today) that was passed based on the result of the vote, I now owe more $$$ for this year's service.
 


NIV

Member
We are on a community well which costs 25$ per month. In January, I paid 300$ for the year. When I paid, I never received a receipt. (As he put it, "we don't give out receipts"...) and it is my bad for not demanding one. The individual managing the well "service" decided the community should hold more $$$$ in the account, as he puts it "a slush fund", in-case the well needs to be replaced. He estimated there should be at least about 20k (extra) in the account. He sent out a letter (after I had paid for the year) asking all the members to vote, and if he did not receive there vote back he would cast it as a vote to raise the rate. I just received an email from him admitting that I had paid thru the end of the year, but because of the new rate change (as of today) that was passed based on the result of the vote, I now owe more $$$ for this year's service.
What state are you in and what is the legal arraignment for the community well? I think that absent weird facts or specific state law or remedies in the legal arraignment, you will not win this battle. A reserve is a prudent thing to have when people join together for the use of capital assets like a well. There will be a process to determine the amount each is responsible for and a vote seems like a good way. The fact that a person who did not vote at all is counted as yes might be a problem. To know would require a lot more about what the legal relationship between all the parties is.
 

Racerx123456789

Junior Member
What state are you in and what is the legal arraignment for the community well? I think that absent weird facts or specific state law or remedies in the legal arraignment, you will not win this battle. A reserve is a prudent thing to have when people join together for the use of capital assets like a well. There will be a process to determine the amount each is responsible for and a vote seems like a good way. The fact that a person who did not vote at all is counted as yes might be a problem. To know would require a lot more about what the legal relationship between all the parties is.
There is no legal arrangement, 1 person manages it. That same person and another make up the "Board of Directors". That is it. I am in Missouri and it is a federally registered well. Unfortunately, I live in a community where the residents would rather pay more than to be recognized as someone who rocks the boat. I do not believe that the individual running this would never show anyone what the actual end vote count was. I am concerned because we were part of a community dock (in the same neighborhood) and were asked to pay a yearly maintenance "into the kitty' fee for things that may break, upgrades etc (same thing..). When it came time to get things fixed, we were asked to split the cost amongst all of us. When we asked where the maintenance fees went to, it was obvious that they kept it for themselves.

Would things be different for me if I had a paid in full for the year receipt?
 

NIV

Member
Would things be different for me if I had a paid in full for the year receipt?
Not really--unless it was oddly worded. While it could be argued you gave up the use of the money for the months not due yet, there would have to be some specific agreement by the other party that exchanged that consideration for them giving up the right to charge you for the rest of the year. In other words, I don't think the receipt will rise to the level of good evidence the fact you gave up the money early was so they could not charge you any differently through the year. You may have thought that, but the other party will say they did not. Unless the receipt were to have some indication you really changed your prior agreement, it won't be helpful to anything other than the fact they received money from you.
 

Zigner

Senior Member, Non-Attorney
You didn't pay "for the year". You paid for 12 months of service at $25 per month. When the rate goes up, you are responsible for the additional amount.
 

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