New Power for Condominium Associations to Collect Unpaid Condominium Fees

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On March 29, 2016, the Massachusetts Supreme Judicial Court issued an important decision for Condominium Associations. In the Drummer Boy Association, Inc. v. Britton case, the Court has ruled that a Condominium Association may file successive legal actions to establish and enforce liens on condominium Unit Owners in successive 6 month periods.

What this means for Condominium Associations is that if Unit Owners continuously do not pay their monthly condominium fees, the Unit Owner's Association can bring legal action against the Unit Owner for 6 months of condominium fees. Then, the Association can also protect themselves and file legal actions for each successive 6 month period that the Unit Owners do not pay their fees. The Condo Association lien jumps ahead of the lender's mortgage and each legal action for 6 months of fees will have super priority over any existing first mortgages. In most cases, the lender will then pay the outstanding fees, plus all attorney's fees and costs incurred by the Association in order to protect the lender's first mortgage.

This gives added powers to Condominium Associations to ensure their financial health and well being and protect all of the other Unit Owners that pay their fees timely.

If you are a Condominium Association that needs legal assistance in obtaining payment of outstanding and unpaid condominium fees by Unit Owners, the Law Office of Flood & Favata can assist you. The best part is that all fees and costs incurred by the Association will most likely be reimbursed in full.

Categories: Updates