Purchasing a condominium can be a really exciting event. You have a new place to entertain, sit back, relax, and call home. But while there are many fun aspects of your new abode, there are still responsibilities to take seriously. When you purchase a condo, you must adhere to a condo association. Condo associations, which are non-profit organizations, are responsible for collecting fees in order to fund their budget and maintain common areas of the property, such as landscaping in the spring and snow removal in the winter. Therefore, when one condo owner is delinquent on his or her fee, it can negatively impact all unit owners.
Condo Fee Delinquencies are Increasing in Rhode Island
Condo fee delinquencies are increasing in the state of Rhode Island, often due to excessive mortgage debt and the current state of the economy as it continues to recover from the coronavirus pandemic. As a result, many condo associations have had difficulty paying the association’s bills and have had to turn to reserve funds just to pay for operating costs.
Foreclosures Don’t Stop Condo Fees
Executive boards in Rhode Island are able to collect up to six months of delinquent condo fees and up to $7,500 in attorney’s fees incurred in the collection before a foreclosure. The person who bids the highest at the foreclosure is responsible for paying all condo fees that have occurred after the foreclosure in a timely fashion.
The Powers of Condo Associations
Under state law, Rhode Island condo associations have the power to administer liens and foreclosures. In much the same way as a mortgage lender can foreclose on a unit for being delinquent on its mortgage, condo associations can do the same. However, because many executive board members are unaware of this, these powers are not often employed.
If a unit owner fails to pay his or her condo association fees, the other unit owners will experience a ripple effect, impacting how much they will need to give as well. Since being delinquent on your condo fees can eventually strip you of your condo through foreclosure, it’s imperative that you make these payments on time.
Palumbo Law Helps Those in Rhode Island with Condominiums
The laws surrounding condominiums can at times be complex and confusing. That’s why it’s important to consult with a knowledgeable and experienced condominium law attorney for any questions or needs that should arise. A qualified Rhode Island condominium lawyer can help to prevent foreclosure of your condo by ensuring that you are making the proper payments at the correct time. He or she can also help condominium associations that are finding it difficult to deal with a delinquent condo owner.
At Palumbo Law, our experienced Rhode Island Condominium lawyers have the requisite experience and work strategically to help our clients to get what they deserve. To learn more or to schedule a free consultation, call us today!