Aaron Shmulewitz, a partner at BBG, was recently quoted in Habitat Magazine on a critical issue affecting condominium boards: recovering unpaid dues from condo sponsors. The article, titled Q&A: How to Recover Unpaid Dues From a Condo Sponsor, explores legal strategies that boards can utilize to address financial shortfalls caused by delinquent sponsors.
Key Insights from Aaron Shmulewitz
In the article, Mr. Shmulewitz emphasizes two effective and cost-conscious strategies for condo boards to recover unpaid dues without immediately resorting to litigation:
- Filing a Complaint with the New York State Attorney General’s Real Estate Finance Bureau – This bureau can enforce the sponsor’s payment obligations and, in some cases, pursue the sponsor’s principals personally for the amounts owed.
- Placing Liens on Unsold Units – Condo boards can file a lien against the delinquent units, which prevents the sponsor from selling them until the outstanding amounts are settled. Mr. Shmulewitz highlights that this process is straightforward, does not require legal counsel, and provides a powerful incentive for payment.
Why This Matters for Condo Boards
Unpaid common charges can place a significant financial burden on condo unit-owners, particularly in small buildings where shared costs are higher per household. Taking proactive steps—such as utilizing regulatory enforcement and securing liens—can provide relief without the time and expense of a lawsuit.
At Belkin Burden Goldman LLP, we have extensive experience advising condo boards on legal remedies for financial and governance challenges. If your building is facing similar issues, our team is available to provide tailored guidance.
To learn more about this topic, read the full article in Habitat Magazine here.
