What Should A Condo Association Do When An Owner Stops Paying Assessments?

Condominium board members should not have to personally navigate liens, notices, legal filings, and collection procedures on their own. Cameron & Kane LLC regularly assists condominium associations throughout Chicago with collecting delinquent assessments. Below are answers to some of the most common questions board members have when an owner stops paying.

What Happens When An Owner Stops Paying Assessments?

Assessments are the lifeblood of a condominium association. They fund repairs, maintenance, insurance, utilities, reserves, and the day-to-day operation of the building. In smaller condominium associations, even one owner failing to pay can create serious financial strain for everyone else.

What starts as a relatively small balance can quickly become a much larger problem if the issue is ignored for too long. In some foreclosure situations, Illinois law may even limit how much of the unpaid balance the association can recover from a new post-foreclosure owner if the association waits too long to act.

Prompt and professional collection efforts help protect the financial stability of the building and prevent larger problems later.

Does The Condo Association Have Legal Rights?

Illinois law gives condominium associations strong legal tools to collect unpaid assessments and protect the financial stability of the building. Depending on the circumstances, associations may pursue unpaid assessments through liens, eviction actions, or foreclosure lawsuits when necessary.

Importantly, not every collection matter immediately turns into litigation. Illinois law generally requires associations to provide delinquent owners with notice and an opportunity to cure before a lawsuit proceeds. In many cases, early involvement by an attorney can help resolve delinquent assessments before more serious litigation becomes necessary at all.

Illinois law also strongly favors a condominium association’s right to recover attorneys’ fees and collection costs incurred while pursuing delinquent assessments. Because of that, assessment collection can often become a low-cost — or even ultimately no-cost — process for the association when handled properly.

What Can Board Members Do?

Many condominium board members are volunteers who understandably want to avoid conflict with their neighbors. But allowing unpaid assessments to continue growing unchecked usually creates even larger financial and legal problems for the association over time.

Acting quickly is not only practical — it is often part of the board’s responsibility to protect the financial health of the association and its members.

One of the most important steps a board can take is contacting experienced condominium association counsel early in the process. An attorney can help the association evaluate its options, begin the collection process properly, and avoid mistakes that may make recovery more difficult later. Waiting too long usually increases the balance owed, increases legal expenses, and decreases the likelihood of full recovery later.

In many cases, getting started is simpler than board members expect.

So long as the association can provide a few basic documents — such as records showing the amount due — an experienced condominium attorney can usually begin the collection process quickly. From there, the matter can often be handled directly by counsel.

Questions About Delinquent Assessments? Contact Cameron & Kane LLC.

So, what SHOULD a condominium board do when a unit owner stops paying assessments? Leave it with Cameron & Kane LLC! We offer free consultations, and in many cases an association’s collection efforts can ultimately become cost neutral when handled properly.

Call or Text 872-588-0727 today.

(Additional resources regarding Illinois condominium association law, collections, and board governance are also available through Logan Law LLC)