Q: I own a condominium in an eight-unit building in Brooklyn. Our sponsor did not pay the homeowners association dues for unsold units, as required under law, and he stopped responding to emails and calls after he transferred control of the building to the board. The dues are about $30,000, plus interest. We are a small building, so this amount is substantial. Other than filing a lawsuit, and incurring more expense, is there a way to get the sponsor to pay the dues with interest?
A: This kind of situation is especially difficult for a small building, where the financial burden of unpaid common charges can have a large impact on the unit owners. But the office of the New York State attorney general, which regulates condominiums, says that such problems “can be resolved, relatively simply, if unit owners organize and act quickly.”
In other words, there are cheaper ways to pursue the unpaid dues than filing a lawsuit.
Your condominium board can file a complaint with the Real Estate Finance Bureau of the state attorney general’s office. The bureau “can be a valuable resource for condominium unit owners who believe they have been wronged,” said Julie Schechter, a partner at Fox Rothschild in New York.
The complaint form is free online. Make sure to be as specific as possible and include all relevant documents, Ms. Schechter said.
Ask the bureau to enforce the sponsor’s payment obligations for the unsold units, and to pursue the sponsor’s principals personally for the amounts owed, said Aaron Shmulewitz, a partner with Belkin Burden Goldman, LLP, in Manhattan. The condominium can also file liens against each of those unsold units for the amount that is owed, Mr. Shumlewitz said. The liens will prevent the sponsor from being able to close on the sale of the units unless the owed amounts are paid to the condominium.
A condominium board can file a notice of lien with the City Register office in its borough, and does not need to hire a lawyer to do so. Make sure the notice contains the condominium’s name and address, the unit number, the municipal block and lot number, and the amount owed. A lien is valid for six years.
“Both of these methods are simple, quick and cost-effective, and avoid the huge time and expense involved in a lawsuit,” Mr. Shmulewitz said.
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