Abandoned Condo Units, Unpaid Common Charges

Herrick, Feinstein
David Byrne,
Partner

A condominium client of ours had a building with abandoned units, some in the midst of bank foreclosure. The unit-owners were scattered among various locations. There were questions as to whether, even if these owners were located, any of them maintained any assets that could be executed. The unpaid common charges connected with these units mounted, generating a growing deficit and jeopardizing the scope and quality of the client’s services and maintenance. We filed foreclosures with respect to the condo liens, and sought and secured rent receiverships, which resulted in tenant-occupied units. The rent was then used to pay the units’ ongoing common charges and pay down the arrearage.

Legal Lesson

Boards should learn that in this economy, this real estate market, and this ever-changing world, standard, thoughtless, and assembly-line-related common charge management and recovery efforts will not suffice.

When dealing with unpaid common charges, boards must think outside the box and be open to utilizing all of the legal means available to them – regardless of how unorthodox.