Collecting Unpaid Shared Condo Costs

Collecting Unpaid Shared Condo Costs

Condominium corporations should have a plan in place for dealing with non-payment of shared costs by other condos. One option is to utilize mediation and arbitration provisions in cost-sharing agreements. Another option is to enforce the cost-sharing lien, which can be enforced in the same manner as a mortgage and gives the non-defaulting party a common law right to possession. Legal action may be necessary, such as a judgment seeking possession of lands and a writ of possession. It is important to check the specific cost-sharing agreement for available remedies and to have a clear plan in place.