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I had an insurance claim on my condo that involved both my…

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Hi I had an...

Hi I had an insurance claim on my condo that involved both my insurance company and the condo associations insurance company. Both approved a payout and my insurance company sent me a check directly and the condo association's insurance company sent the check to the Board. They now will not pay me money owed until they are provided all invoices from work done (which was given to both insurance companies) and they are requesting proof of payment from my insurance company. Both adjusters say that this is not required and frankly I rather not provide them with personal information like this. So my question is are they legally allowed to hold funds that are owed to me until this documentation is provided. thanks

Lawyer's Assistant: Do you have copies of the governing documents? When were they last updated?

Yes

Lawyer's Assistant: Has anything been filed or reported?

No

Submitted: 6 months ago.Category: Legal
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Answered in 5 minutes by:
8/4/2017
Lawyer: KLAW, Lawyer replied 6 months ago
KLAW
KLAW, Lawyer
Category: Legal
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Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
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Good morning. I am a legal expert who will help you this morning. Is the check written to the Board?
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Lawyer: KLAW, Lawyer replied 6 months ago
If the check is written to the Board, then the check is payable to them, and they can require an invoice.Generally, in a condominium, the board has a duty to make sure the property is being repaired. The association is the trustee to the insurance proceeds and must administer the property and money received, as a fiduciary to the funds.Legally, and under the Governing documents the board has a duty to the other member of the condominium association to be absolutely certain that there is no common element damage.Many times damage and repairs that are considered inside a unit turn out to be a common element (sub)floor or wall, plumbing connection, or sheetrock that is a common element.So yes, either if the check is made out to you or directly to the board under the governing documents they can request an invoice before releasing funds. Remember the Board's insurance company is paying part of the claim and the Board has a fiduciary duty with the proceeds before releasing the funds.
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Lawyer: KLAW, Lawyer replied 6 months ago
If you have any other questions please just ask.
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