Condominium association budgets suffer significantly when unit owners become delinquent in paying assessments. Moreover, the burden for those unpaid assessments falls on the responsible unit owners who must make up the shortfall in the next yearly budget, which often results in higher assessments across the board. For this reason it is important that associations have collections policies in place to pursue unpaid assessments. However, associations must ensure that in their zeal to collect unpaid assessments that accepting partial payments from delinquent unit owners won’t be considered payment in full of the entire debt owed. This blog post will discuss a recent court case which serves as a loud warning to all associations when accepting partial payments from delinquent unit owners.
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