Is the extra fee for “administrative fee for non-resident co-owners” legal?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is the extra fee for “administrative fee for non-resident co-owners” legal?
My home (PUD in Michigan) association recently asked non-resident co-owners (anyone who does not live in the house, renting or not) to pay extra $50 per month as “administrative fee for non-resident co-owners”. Since I rent out my house, it will impact me. The extra fee doesn’t seem to be fair and I can’t find any support in the association by-law. Can this policy stand ground legally? Shall I challenge it? Thanks.
Asked on September 12, 2010 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The fee *could* stand legally, in the sense that there is no law against charging an administrative fee, or a greater one to non-resident co-owners. However, it may not be imposed at will. It would need to be something that's in the HOA agreement, the bylaws, some other contract or agreement by which you're bound, community rules, etc.--i.e. there needs to be some contractual basis for it. It may be the case that the governing documents allow the association to change or add fees at will, in which case they can do this. If that's not the case, they could only add it whenever the governing agreements or rules come up for renewal. If you haven't already, ask the association to show you or point out the basis for the fee; take a look and see if makes sense.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.