New York's Cooperative and Condominium Community

Habitat Magazine Insider Guide

HABITAT

Subscribe for Daily Updates!
Property Management Charged Individual Owners for Expenses Without Board ResolutionApr 02, 2023

We sold a condo property recently in NY. The property management company forced us to pay a portion (apportioned to our unit's size) of a very large general bill of overdue building utility bill without the board itself passing a resolution or notifying the condo owners. The management company told us that they would not sign off on our sale unless we paid. They sent us a copy of the overall bill for building (amounting to over 40,000 dollars for over 6 months neglect).

We had no choice but to pay as the closing was imminent, and we did not have the time to fight it. They did show us a copy of the overdue bill sent by the utility. It was large and it was delinquent. Previous extraordinary expenses were always sent in the form of an official notice.

My question is whether a property company can charge us for such an expense, amounting to several thousand dollars, without the board passing a resolution or even officially notifying the owners. As we have already closed and, are no longer owners, what recourse do we have to complain and/or try to have the money returned to us? Is it legal for such an expense to be demanded without a board resolution?

This property company has also to date, not returned our initial deposit of two months fees for the standard management fee.

Join the Conversation Comments (3)
Property Management Charged Individual Owners... - Steven424 Apr 02, 2023

Where was *your* closing attorney in all this and what did they have to say or advise you?

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Property Management Charged Individual Owners for Expenses Without Board Resolution - - CondoNYC Apr 03, 2023

Our attorney was not the best. We are aware of our mistake. Now, we want to know if this is legal, and whether we can bring to small claims court.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Property Management Charged Individual Owners... - Steven424 Apr 04, 2023

CondoNYC - At this point, I think it is best that you find a new attorney and ask them for advice. You're asking questions of a legal nature, and there are not many attorneys on here who will answer without an official attorney/client relationship.

Good luck!

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
ask the free legal Bar Assoc. clinic. - DM Apr 07, 2023

You get a free half an hour. Google it. It used to be in Midtown.
Probably the thing to do is write "paid in protest" on the subject line of your check and then take them to small claims after it is cashed.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation
Property mgmt charge - Sandra Maxwell Apr 08, 2023

OMG! This was an over due building bill? How can they do that? Yes get another atty, Don't let this go without a fight. This mgmt comp. needs to be investigated. I don't know who you can report this to, but I'm sure there is a higher agency that they can be reported.
Good Luck! Let us know the solution.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation Comments (1)
Property mgmt charge - Steven424 Apr 08, 2023

The new attorney hired by the OP will know all the proper legal procedures. I strongly advise the OP not to take *any* additional actions, but let their attorney handle it from here on.

And yes, I agree this should be pursued to the fullest extent possible. I think the A/G's office is the proper venue. But again, let your attorney do the talking.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?