Friday, November 30, 2007

Attorney Fees & Assessment Enforcement

Question: " I am late paying my assessments. I received a letter from my HOA's Attorney stating that my assessments are delinquent and charging me attorney's fees. Can they do this?"

Yes, they can recover attorney fees. Civil Code § 1366(e) states that an association may recover the following when an assessment becomes delinquent:

(1) Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney's fees.


(2) A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount, in which case any late charge imposed shall not exceed the amount specified in the declaration.


(3) Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney's fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.

Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com or call us at 951.818.0687.