COLUMN: Delinquent payment leads to lien

Q. We received a notice of a lien filed against our property for a late payment of $66.15, which was due several months ago. The management company never informed us that we had missed a payment.

After several telephone conversations with representatives of a collection agency and the association, the payment has escalated to $535. We were told that only the board can rectify this situation.

So, last month we faxed a letter to the board asking for a meeting. We thought we had an appointment with the board at its next regular meeting, but because of scheduled board business, we did not get a hearing. We have since sent another letter requesting a session with the board.

We don't disagree with paying for services rendered, but we do take issue with the additional fees. What do you think?

A. It is not unusual for associations to use collection agencies, some of which require associations to advance the legal fees to initiate the process of notice and foreclosure. Other agencies do not require an advance payment, but their initial fee is included with the dues and late fees owed in their demand letter. You have to ask the collection agency which services are included in the fee you have been assessed.

The collection agency should have sent you an intent-to-lien letter via regular mail, as well as by certified mail. Depending upon the association's or the collection agency's policy, 10 to 20 days should pass before filing a lien.

You state that the management company did not notify you of the late payment, yet you receive other mail from them.

The board and management company need to investigate this matter. Is there proof that you received a warning notice or the intent to lien notice before the filing of the lien? If there is definitive proof, then you will probably have to make full payment or payment arrangements to have the lien removed. If there was an error, the board has the power to terminate the foreclosure process and determine what money is owed. This amount would probably include the dues and late fees.

As for the collection agency's fee, if there is no error, you would have to pay it. If there is an error, the association would have to pay a termination fee to the agency.

Q. When a secretary's term of office ends, does she hand over the copies of the minutes to the new secretary or to the president?

A. The secretary should maintain a corporate book that stays in the association's office, and not with an individual.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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