June 26, 2009

We recently talked to two experts about the problems condos and homeowners associations run into when they rely on unwritten "house rules". If your HOA is in this position, this week's tip is specially for you.

The bottom line is that unwritten rules are unenforceable. As long as no one challenges the rule, you can happily go along for a long time thinking everything is OK. But sooner or later, someone will stand up and declare that the emperor has no clothes.

"I represented an association that had a house rule in which the board president's assessments were waived," says Donna DiMaggio Berger, managing partner at Katzman Garfinkel Rosenbaum in Ft. Lauderdale, Fla., who advises associations.

"It was just ignorance and probably some owners saying in the past, 'This is a lousy job, so we're going to waive assessments for whoever's going to serve as president.' But that doesn't make it right."

When a unit owner complained and demanded the unpaid assessments be paid back, Donna learned the unwritten policy had been in place for 20 years. "Getting back those funds was a mess," she says.

To read more about unwritten HOA rules—including what to do if your HOA is in this boat—see our new article. Go to article now »

Best regards,
Matt Humphrey
President