one of a kind question it's a doozy

Started by MindyD • 14 replies • 1582 views

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MindyD (Arizona)
Posts: 47

Posted:

Arizona the owner of a condo unit died and she had two people living with her renting a room, they moved out shortly afterward. The owners family came out and they just left it and the owners name is still on the paperwork but back taxes are due. Anyhow the friends of the deceased owner moved back into the unit, hooked up electricity and the president of the board wants them to pay the back water bill and she is fine with them moving in. They are living there for free and not paying hoa dues, how can this be? Can the president of the board allow this? I don't think the family cares but they are squatters right?

EbonyJ (Tennessee)
Posts: 62

Posted:

Yes they are squatters, your President should not be encouraging this...Until the paperwork has been changed to give the home to whomever is over the estate or the bank eventually forecloses on the property.. Your HOA will be unable to collect dues.. If it was my community I would notify the relatives and the ultitiy company...

PeterD3 (Florida)
Posts: 708

Posted:

How can anyone say they are squatting based on what has been posted? Do you know the definition of squatting? There is not enough information here to say.

The occupants (tenants?) may have a financial agreement with the owner(s) and, with the possible exception of utilities, are not responsible for mortgage, taxes, dues, etc. per se.

This (possible) agreement may provide the funds to pay the taxes and restore the unit to 'normal' status in terms of the taxing authority.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The board, MC or HOa attorney should contact the executor of the estate and make sure that all past dues are paid and that any occupants of the unit follow any rules the HOA may have.

Other than that, everyone should step back and MYOB.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

They are living there for free and not paying hoa dues, how can this be? Can the president of the board allow this? I don't think the family cares but they are squatters right?

How exactly do you know they are living in this house for free? You dont. Just like any other HOA, you contact the owners for hoa dues, water, etc. You should also send a letter mentioning you noticed the renters moving back in, but you have yet to be paid, blah, blah. etc.

TimB4 (Tennessee)
Posts: 21,047

Posted:

Mindy,

The dues are now the responsibility of the individuals estate (at least until the disposal of the unit is decided). The Association needs to find out who is the executor (who may not be assigned yet or even a member of the immediate family) and be in contact with them.

It was not identified if the estate is allowing the people to live there or not. Either way, this would be an issue for the executor and not the Association. Again, this is why the Association needs to be in contact with the executor.

TimB4 (Tennessee)
Posts: 21,047

Posted:

One note about the executor.

The Association should contact the courthouse to see if one has been appointed.

Based on my experience as executor with my mothers estate (which was in Yavapai County), don't expect an announcement in the AZ Republic announcing who the executor is. My legal adviser suggested placing the announcement for all debts to the estate in a smaller regional paper. This way, there may be less false claims on the estate. However, it can also limit the legitimate claims as well.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Regardless of who owns the property, your association has a lien on the condo unit for past due assessments. Only tax liens and first mortgages are superior to an association lien.

I am curious as to how your association calculates the water bill. Is there a meter for each unit? How would your association know how much water these occupants are using? Are they using a significant percentage of the water?

JeffR7 (California)
Posts: 251

Posted:

Quote:

Posted By LarryB13 on 10/29/2011 7:19 AM
Only tax liens and first mortgages are superior to an association lien.

Larry, is this specific to Arizona? this is not the case in CA

PeterD3 (Florida)
Posts: 708

Posted:

The OP never stated there is any kind of lien just that taxes are owed.

There was an OP assumption that the occupants are living for free implied by them not paying dues but that has not been substantiated nor is it their responsibility.

Certainly the President, who is likely more aware of the facts in this case, is doing what is best for the community within her/his authority and has only asked the occupants to come up to date on the water bill.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By JeffR7 on 10/29/2011 7:44 AM

Posted By LarryB13 on 10/29/2011 7:19 AM
Only tax liens and first mortgages are superior to an association lien.

Larry, is this specific to Arizona? this is not the case in CA

I have to admit that I was surprised to find that our association could not foreclosure on a first mortgage but if you think about it, no one would lend money if the HOA could take the property. The statute is ARS 33-1807(B). This statute does not prevent the association from suing the owner for the past-due assessments.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By PeterD3 on 10/29/2011 12:12 PM
The OP never stated there is any kind of lien just that taxes are owed.

There was an OP assumption that the occupants are living for free implied by them not paying dues but that has not been substantiated nor is it their responsibility.

Certainly the President, who is likely more aware of the facts in this case, is doing what is best for the community within her/his authority and has only asked the occupants to come up to date on the water bill.

The OP said that the occupants are "not paying hoa dues." I interpretted that statement to mean that assessments were past due but I guess it could also be taken to mean that someone else is paying the assessments for them. If the assessments have not been paid, then there is a lien. "The association has a lien on a unit for any assessment levied against that unit from the time the assessment becomes due." ARS 33-1807.

If HOA board members and officers were "more aware of the facts," this forum would not exist.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

You can't really go after renters to pay HOA dues. Its the owner's job (or executor). I guess you can ask, though.

CarolF (Florida)
Posts: 435

Posted:

Kelly - just as an interesting aside, FL dealt with this issue in some new statutes that were passed last July.
Rental payments to association when owner delinquent-
It has been clarified that when an owner is delinquent in monetary obligations to the association, after proper notice has been provided to the tenant and the owner, all subsequent rental payments must be paid directly to the association until all monetary obligations of the parcel owner have been paid in full to the association.

I doubt if most states have even considered this, but because of the real estate issues in FL it has been addressed.

MindyD (Arizona)
Posts: 47

Posted:

We do have our own water meters for each unit, although, the hoa president said she wanted them to pay for the back bill of 300 dollars for water and no one has lived there for over a year. In Arizona we have M Power a pay as you go electric service so you just pay a deposit of 100.00 you get a box and a card and walla electric. The president likes them and lets them do a few things around here and they do get paid for it. I do know that when the owner died her family did come out and the renters were asked to leave but the owners brother lives out of town and has no interest in dealing with this unit so he is just leaving it for the bank to take over I guess.

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