Have a condo That is rented out. It is listed for a short sale and headed to foreclosure. The tenant has been asked to leave by people on the board and I just got a call demanding the rent for past due quarterly assessments. What is the law regarding this?
Real Estate Attorney
Read your deed restrictions (Declaration of Covenants, Bylaws and Articles of Incorporation), it is not un common to find provisions in the deed restrictions which allow the Association to collect rents directly from a tenant if you are delinquent in the payment of assessments. Furthermore, your association may also have the right to evict your tenant if the tenant refuses to pay the Association under its right to collect in the deed restrictions.
If your deed restrictions are silent as to this issue then your tenant has no obligation to pay the Association, and the Association cannot force the tenants removal.
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Generally the condo has a continuing lien for past due assessments. While the lien is subordinate to your institutional first mortgage, the condo can foreclose and extinguish your interest in the property. If it is possible to come to some agreement with them, it would be wise t do so, unless you don't really care if that happens. At such time as the condo institutes foreclosure, it will probably ask the Court to issue an order directing the tenant to pay the rent into the registry of the court.