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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41220
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
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I'm dealing with an above unit owner and a Condo HOA. There

Customer Question

I'm dealing with an above unit owner and a Condo HOA. There are a few issues:
The above owner "Bob" had an AC leak that came thru the ceiling into my unit. It was roughly a $500 repair. He refused to pay indicating it was accidental and he has since serviced his unit and installed a safety guard. (He claims he is a lic. A/C person). Bob's insurance claims its not their liability, but the HOA as the overflow occurred in the pipe between Bob's floor and my ceiling. The HOA takes the position that it IS Bobs issue. I sent Bob a demand letter for my repair bill and copied the HOA. Now, nothing is happening...Bob won't pay and the HOA won't budge. Next issue: Bob is also a Board Member as well as a maintenance person around the property (yet he does not want to be called a maintenance person). He is allowed to not pay dues on his property in lieu of his services. On the financial documents from previous years, it shows the dues collected from all owners, and it shows a concession t
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
Got disconnected.....
the concession is in the amount Bob would pay so I can safely say, Bob is not paying dues in lieu of his services. This was also discussed at an HOA meeting in Nov 14. One tenant took issue with Bobs failure to contribute to the income pool as our Condo property is short on funds as it is. I feel Bob should pay his dues like other owners and if the HOA owes him fees for services, those should be handled as A/P. I also believe Bob to be circumventing taxes he may owe the IRS by not being issued a 1099 for the fees he is actually earning. What are your thoughts on these issues. Thanks:)
Expert:  Dimitry Esquire replied 1 year ago.

Hi and thank you for your questions. Please permit me to assist you with your concerns.

As I see three separate questions, I will respond to them separately to ensure that I do not miss anything.

The first issue is the fact he hasn't paid you and the HOA sides that this is his issue. Here, if nothing is happening and your insurance is not pursuing you would need to take him to small claims court. This is always your right, and since you suffered injury, you can pursue him personally (even if this is an 'accident', he is still liable for damages that were caused to your unit). Suing him is ultimately your own responsibility, not the HOA, so if they are refusing to get involved you have your own recourse.

The second issue is his dubious position with the HOA. As far as paying his dues that is up to the HOA. I agree that he probably should be paying, but if the HOA treats him as a 'salaried' or rather a service for service agent, it is permitted. But they then have to list him as such. I would suspect that this is permitted unless your HOA bylaws bar this practice, but you could attempt to stop it by recalling current Board members and voting in members who are not going to act in this manner.

Third, the IRS issue a bit different. If this is a 'like for like' transfer, and he is not actually receiving a benefit, there is no 1099 obligation. He is not receiving fees, he is simply not paying anything. Now, you can still report this to the IRS and claim that this is a fraud issue and have them investigate, but this is not a proverbial slam dunk.

Sincerely,

Dimitry, Esq.

Please let me know if I can clarify anything else. Please be aware that I am logging off to spend time with my family for the holiday dinner, but I will return later tonight. Should you have questions I will address them then, but there may be a delay with my response. Otherwise kindly do not forget to positively rate if satisfied with my information. Thank you!

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