Pre Pays
Dennis,
I have seen that 2 board members of my HOA have been pre-paying their dues. They have been getting reimbursements from our management company. They still own their properties so my question is this legal?
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Rick,
It is absolutely appropriate for any member to pre-pay their associations assessments at any time. What I don’t understand is your comment relative to reimbursements from the management company. What is that about? is it about reimbursement for expenses incurred by those board members as part of their duties? If that is the case, it is also appropriate. If you are talking about a reimbursement of their assessments that is absolutely inappropriate in any way. As long as the board member or any member owns their home in the community, they are subject to the assessments of that community without exception. When a home is sold the title transfer addresses the pro-rated share of pre-paid assessments in the transfer of funds based on the closing date of the sale. Otherwise, no-one escapes the responsibility to pay assessments, legally.
Dennis
Dennis,
Let me clarify, on our financial statement it shows 2 board members pre paying more than the monthly amount due. Then later they are refunded dues for over-payment by the management co. Seems inappropriate, if so why over pay?
Rick,
Think about this for a minute
. If you paid more than what was required would you expect a refund? So why is it inappropriate for board members to be refunded overpayments. There is no issue here, unless more details are abavailable.
Dennis