Real estate Q&A: Can we refuse to pay special assessment?

Q: Our board recently passed a special assessment. Several of our neighbors disagree with the assessment and are refusing to pay. Is there any consequence if we also refuse to pay? — Kate

A: When someone purchases a property in a community association, whether a homeowners association, condominium, or co-op, they agree to abide by the rules and restrictions in the community’s formative documents, as well as those codified as statutory law. These agreements, and the various community association statutes, are what give an association “teeth.”

When property owners do not pay their regular or special assessments, they are subject to the rules allowing the association to fine them, place a lien on their home, and possibly foreclose.

Worse yet, if the community takes legal action, the offending owner will be responsible for the community’s attorney fees, along with interest and administrative fees, in addition to the delinquent assessment.

This can add up, and I have seen many situations where the costs are more than the unpaid assessment itself.

Many homeowners do not understand that this serious matter can lead to losing their homes.

When a homeowner receives a bill from their association that they disagree with, they should contact the association to see if the charge is correct.

If this does not lead to the association correcting the issue in writing, it is best to pay the questionable charge before continuing to fight it. This will stop additional costs that the owner will ultimately be responsible for.

While I understand from first-hand experience that paying for something you disagree with is frustrating, sometimes it is best to swallow your pride a bit to keep a disagreement contained and more money in your pocket.

After you make the payment, you can continue to try to have the problem fixed without digging yourself into a deeper hole in case you are wrong.