Monday, February 8, 2010

The “I did Not Know There Was an Association “ Defense

Representing condominium and homeowner associations throughout New Jersey has its challenges. Often unit owners feel they should not have to pay common charges for one reason or another. Logic usually prevails. Unfortunately, sometimes these issues end up in court.

But everyone once in a while I am presented with the silliest of all excuses: I did not know there was an association when I bought my unit, so I should not have to pay the monthly fees,” Yes, more than one person has actually asserted this, and they do not all live in the same place.

Try that with local taxes. You might say, “I should have to pay local taxes because I believed this was an unincorporated area when I purchased my home and that I only had to pay taxes to the county. No one mentioned local taxes as well.”

Or try this one, “I believe the United States lacks the constitutional right to tax, so I refuse to pay my federal taxes.”

The notion that one can forgo taxes or assessments by denying the legitimacy of the organization is pure folly. A legally constituted homeowners association or condominium has the right to assess mnonthly charges. Period.

What really might happen in some cases is that sellers may misrepresent the status of the association to a prospective buyer. If so, that may result in a misrepresentation or fraud case against the seller and maybe the real estate professional.

Or it may be that the buyer’s lawyer had a duty to advise the buyer that an association existed and what that means. Under those circumstances, the failure to advise may result in a malpractice action.

But the naked assertion that one does not have to pay because one was not informed –or one denies the right of the association to exisit at all –that is all nonsensical.

Associations should try to reason with homeowners when they make these claims. But if the unreasonableness lasts too long, there may be no other option left for the associati0on but to go to court.

It can be very difficult to reason with unreasonable people.

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