Foreclosure in Downtown>Question Details

Lv7874, Home Buyer in Los Angeles County, CA

condo board member .owner is not paying hoa dues can i charge the tenant.

Asked by Lv7874, Los Angeles County, CA Sun Jun 12, 2011

unit in short sale . family member/agent placed two tenants in the unit claiming they were stagger staying for security . One tenant tell me he has a lease on the unit , as the agent changes story about the two tenants with each conversation. They are now three months past in HOA dues . can i charge the tenants arrears , similar to the new welcome law in Florida where you force the tenant to pay when the homeowner wont .and be able to evict . Or can i change the lock of the lobby and gates and have them present me a payment in exchange for keys or let the lawyer deal with the problem . Back-story : The unit owners have been with our building for two years . The association received only three checks from the owners who was renting family members .Two of the check were from our lawyer who did the collection for past arrears . And the third was for three months past dues (it bounced) now we have 4 months past dues plus late charges and move in fee. Your opinion much appreciated.

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17
Caroline Choi’s answer
Do you have an attorney for the HOA? Have the attorney file an notice of default against the property. Worst case scenario and the bank forecloses on the property, you will at least get the amount in HOAs from the date the bank owned the property, but by filing an NOD, at least you are protecting the HOAs interest in the property.

Is the unit in escrow already? If so, the buyer needs to be alerted they cannot close without zeroing out the back due HOAs. Even if they try to negotiate the back due HOAs, at least you'll be collecting some funds as opposed to none. Which building are you in?
0 votes Thank Flag Link Sun Jun 12, 2011
No! You can charge the owner of the Unit and should go after with every legal device you have at your disposal, you need also see what By-laws this owner and board member is violating and go after them for than, also requiring them to step down from the board for violating the by-laws knowingly with shoddy renting practices, don't be afraid if the owner is a Realtor, they are violating HOA laws and as a board member should know better, Also force a vote to not allow this person from doing any other Real estate deals in the building whether for themselves of for others in an official capacity
2 votes Thank Flag Link Sat Jun 18, 2011
I currently have a buyer who's purchasing a short sale unit at Sky Lofts Downtown and the owner on title is technically the HOA. They foreclosed because the owners were overdue on their HOAs. The owners are still trying to short sale it, there is a first and second -- with the 3rd being the HOA. The HOA foreclosing is apparently possible because the HOA at Sky Lofts has successfully done it. However, Bank of America is the first, and if they wanted to no longer participate in the short sale, they could foreclose and reclaim their interest as the first lienholder, and the HOA would be out of luck in collecting their back dues. Regardless, BofA is trying to get all parties to participate in the short sale without having to go that route, and we're in the process of negotiating how much to give to the 2nd and 3rd/HOA.

This is an example of one building that's tried this -- please consult with a real estate attorney to assess the feasibility of a similar route. I agree that locking out the tenant is not a good way to handle the situation.
1 vote Thank Flag Link Sun Jun 12, 2011
What is your source for HOA dues do not survive foreclosure (regardless of position)?
Flag Thu Mar 14, 2013
Agree with others - your relationship is with the owner NOT the tenant. You cannot charge them the HOA fees, these obligations of the owner.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Jun 20, 2011
The management company should be instructed to start legal proceedings immediately. My association wouldn't allow this for so long

DAVID COOPER Las Vegas Foreclosure Speiclaist with 35 years experience buying below market. For a free list see website or Call +1-7024997037
0 votes Thank Flag Link Sun Jun 19, 2011
Contact your management company and have them start the collection process.


This is not legal advise but what I have seen.
You can not charge the tenant because you have no contract with them.
0 votes Thank Flag Link Sun Jun 19, 2011
The HOA can levy fines, charge a fee for collection, file notice of default, and even foreclose.

But no, YOU can''t charge the tenant anything if you aren't the owner. Even the owner can't charge the tenat anything that isn't spelled out in the lease.

Leave the legwork up to your HOA/property management. That's what they're supposed to do.

Are you a member of the board? Are you an owner at the condo? Then direct your questions to your HOA.
0 votes Thank Flag Link Sun Jun 19, 2011
Why not sue the owner in Small Claims Court if you are that angry with him?

David Cooper Las Vegas Foreclosure Specialist in Bank Owned REOs at 20% off. For your Freee List
email: davidcooper@lasvegaswinner.org or Call +1-7024997037
0 votes Thank Flag Link Thu Jun 16, 2011
No you cn not, if you are a board member you need to brush up on your rights in this HOA, the tenants can be evicted if you have bylaws that grant you that power, as for the condo owner, you can take what ever legal action there is allowed by the bylaws. I would also think that the board would have to vote on the action, As board members I would suggest you all sit down and read the laws and rules as they were outlined in the beginning, you can not step beyond the bounds that were created! If you are not sure, then have a Real Estate Attorney give you advice, they will need the rules and bylaws in order to give you that advice! Good Luck with the Problem unit owner!
0 votes Thank Flag Link Mon Jun 13, 2011
Usually tenant is NOT responsible for HOA fees. It's the owner that association has to go after. Since the owner is short selling the condo, proceeds from the sale will paid off HOA fees. The $$$ will come directly from escrow, so there's nothing to worry about.

Ewa Reza

Realtor
cell:323.455.7575
ewareza@gmail.com
0 votes Thank Flag Link Mon Jun 13, 2011
HOA Board member,
No, you cannot charge anything to tenant unless you're the owner or the property manager of that particular unit. What you can do is start your own foreclosure or get a judgement lien against the current owner to attach it to the property.

Best wishes 4 all,
Doug Perez
(323) 285-8864
0 votes Thank Flag Link Mon Jun 13, 2011
I remember your last posting. It sounds like you're a concerned neighbor. The HOA will get paid off by the lien holder in the short sale. Either the bank will pay off the whole thing or it will be negotiated between the parties of the short sale, meaning, it could be a combination of the owner, the buyer & the bank paying off the deficiency.

You're not going to get the tenant to pay the back dues. You can't lock out the tenant either if they have a lease agreement OR permission from the legal owner to live there. You could get in big trouble locking out these "tenants". If the tenants are in the unit illegally & you'd need proof of that, that is the only way you could lock them out, BUT you'd have to have the police involved or a court order. ( I am not an attorney, these are my opinions)

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Mon Jun 13, 2011
Lv,

The HOA agreement is between the HOA association and the owner. Prior to them purchasing the property, the buyers signed a document confirming they would abide by this regulation. Why would renters pay a fee for which they are not responsible?

As far a "pinching" services, ie. changing locks, turning off water & sewer, removing doors & windows etc.....there are regulations regarding this that would be best processed with an attorney prior to implementing.

Good luck,

Bill
0 votes Thank Flag Link Mon Jun 13, 2011
If the short sale goes through, the HOA will receive all of the back payments. Why are you asking the question here, instead of asking your attorney? It sounds like you have a grudge against the owners and tenants. You need to approach this as a legal and business matter.
0 votes Thank Flag Link Sun Jun 12, 2011
Lv7874,
First, I doubt you can lock out a tenant. Your contract is with the owner, their contract is with the owner, the owner is likely the only one you can take action against. I'm not a lawyer, so as others have said, you may need to consult one, but start with the link below and explore the Landlord Tenant Law for California. After reviewing this, you may find your answer or be better prepared to discuss your situation with the attorney.
0 votes Thank Flag Link Sun Jun 12, 2011
Hi Lv:

Realtors can not give you legal advice. Your best bet is to contact a real estate and/or and eviction attorney. It is not customary for the tenants to pay HOA Dues unless it is agreed upon and stated in their rental agreement. The HOA can place a lien on the unit for the back HOA dues.

Also, be advised, that if the property in question is in the City of Los Angeles, the property may be subject to the Rent Stabilization Ordinance through the Los Angeles Housing Department, if the property was built prior to 1978. See the link below. Condo's are included.

They are now tenants and have tenants rights. The back HOA dues are between the HOA and the legal owner of the unit, not the tenants.

Good luck!

All the best,

Kat Becker, Agent
Prudential California Realty
katbecker@prula.com
0 votes Thank Flag Link Sun Jun 12, 2011
I cannot give you legal advice, but only give you advice as a Realtor®. The tenant(s) is/are not in a contract with the HOA are they? How would the Board be able to require payment from them?

You should check with a real estate attorney and ask about the rights of a condo association to foreclose on the homeowner and be able to rent the condo out and then short sale it. That would be a drastic measure but your association may have the right to do so. It is very important that you consult an attorney that specializes in real estate.

Changing the locks is probably not the right thing to do without consulting an attorney.

Dot Chance, Realtor®
Certified Distressed Property Expert â013 CDPE®
DRE License #01494182
Keller Williams Realty World Media Center
http://www.DotChance.com
818.339.7712
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Sun Jun 12, 2011
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