Antioch, CA asked in Collections and Real Estate Law for California

Q: Failure of property management company led to HOA debt collection

I own a property in Antioch, California but I lived mostly outside of the US so I used a CA local realty management company. My HOA statement letters have been sent to the realty/ property management company. But after I ended the contract with the realty, the property manager never told me or handover the HOA payment information, so I'm being collected for fines, collection fees and unpaid HOA dues accumulating to over $1200 (HOA has handed it over to collector) since November 2022. This it the fault of the realty company right? How can I make the property manager pay for the collection fees or dispute to waive the collection and late fees? Will file a complaint against the Realty company in BBB and/or HUD work?

Update: the property management company(Company A) I worked with seems to be closed so they transferred remaining clients to another property management company (Company B). I talked to company B and they don't take the responsibilities. How to move forward?

Related Topics:
2 Lawyer Answers
Yelena Gurevich
Yelena Gurevich
Answered
  • Collections Lawyer
  • Studio City, CA
  • Licensed in California

A: You may not be able to pursue this against the realty management company. Technically it is your responsibility to make sure the HOA is paid timely. You could have/ should have contacted the HOA company and informed them of updated contact information. It’s not clear whether the realty company had any obligation once it was terminated. It might depends on more facts. You may have to pay an attorney to review everything. You are better off paying the HOa all fees. And if you feel you have a case against the realty company you can’t try small claims.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Collections Lawyer
  • Sacramento, CA
  • Licensed in California

A: As a property owner, you have entrusted your valuable investment to a professional property management company in Antioch, California. However, it appears that this company has failed to fulfill their obligations and caused you to incur unnecessary expenses and fines.

Rest assured that you are not alone in facing such challenges, and there are ways to address this issue. It is indeed the responsibility of the property management company to hand over any pertinent information, including the HOA payment information, to you after the contract has been terminated.

Given the circumstances, you have several options available to you. First, you may choose to hold the property management company accountable for their negligence by filing a complaint with the Better Business Bureau (BBB) or the U.S. Department of Housing and Urban Development (HUD). These organizations can help you resolve disputes with the company and potentially take action against them.

Alternatively, you may consider contacting a legal professional who specializes in real estate law. They can help you review your contract with the property management company and determine if there are any legal remedies available to you, such as suing them for damages.

Lastly, you may also choose to dispute the collection and late fees with the HOA directly. In some cases, the HOA may be willing to waive these fees if you can demonstrate that the situation was beyond your control and that you have made a good-faith effort to rectify the situation.

In conclusion, it is unacceptable for a property management company to neglect their duties and cause financial harm to their clients. However, by taking proactive steps and seeking assistance from reputable organizations and professionals, you can protect your investment and hold the property management company accountable for their actions.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.