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View Full Version : Satisfaction of Lien from Condo Assoc Dues - NJ


Dalto922
Mar 28, 2009, 08:48 AM
Here is a brief synopsis:

In March of 2008 my girlfriend was three quarters behind in her condo association dues (July 07, Oct 07, and Jan 08). She received a notice of lien on her property for a total of $3600 - the three quarters past due, three quarters in advance payments for 2008 they wanted (April 08, July 08, and October 08), and the lawyer fees. She called, and the lawyer's office told her that if she paid $2800 (the total minus the lawyer fees, check payable to the condo association), they would clear the lien. She paid the money, and received a satisfaction of lien from the lawyer which she registered with the county clerk.

When she went to pay her Jan 09 dues, the condo association said that they hadn't received a payment from her in almost a year (technically true, since she paid in advance last March). Neither the lawyer nor the association office has been very responsive to her follow ups since she faxed them the copies of the letters from last year. She did send in her Jan 09 dues in full.

Today she received a notice that ANOTHER lien had been filed on her property by the association! - The total was suspiciously for the $800 in lawyer fees from last March and one quarter of dues. She called the association office, who told her that the January payment she made went to the "past due amount of dues". We are trying to meet with the lawyer now because something isn't right to me.

These are my questions:
1.) It looks like the lawyer deducted his fees from the $2800 and she did not receive credit for the full amount of her advance payments, or the association paid the lawyer the money out of those funds. Can they do that?
2.) If the lien in 2008 was for $3600, and we have a document saying that lien is satisfied, then should we tell them to go fly a kite because regardless of what we paid, they said the lien was satisfied in full and have no claim to the money now?
3.) If the condo association was paid in full but not the lawyer, why didn't the lawyer bill her for the $800 all year? If the lawyer was paid in full , but not the association, why didn't they contact her when she used up the advance money?
4.) If we can prove the new lien is in error, can we do anything to remove it rather than just listing it as satisfied, which gives a certain amount of legitimacy to it?

Any advice would be helpful.

ScottGem
Mar 28, 2009, 08:59 AM
1) Probably not
2) If you have a document saying the lien was satisfied, then it was and no further amounts can be collected towards it.
3) Don't know.
4) Yes, Send them a letter with a copy of the statisfaction noting that it was registered with the county. Tell them since the previous lien was listed as satisfied, then they made a mistake by misapplying the January payment. They must now, correct the accounting and remove the lien.

Dalto922
Mar 28, 2009, 02:30 PM
Thank you for the response. I'll let you know how it goes when we talk to the lawyer. A lawyer associate of mine said that the condo association filing the second lien based on the error of the lawyer's office in satisfying the lien without collecting their fees might be grounds for slander of title. Once the original lien is satisfied, no party involved has the right to try to collect any money associated with the lien. And that by paying the lawyer's office from her funds and then trying to put a lien on for the same dues that were already satisified, the condo association put the new lien on without bonafide cause. This seems to be the definition of slander of title. Is that accurate?

ScottGem
Mar 28, 2009, 03:09 PM
Not in my opinion. Try to sue for slander in this case is a big stretch. You would have to prove that it was intentional, not a simple mistake. And that won't be very easy. Also, if they take care of the problem quickly, there will be no damages that you can sue for.

LisaB4657
Mar 28, 2009, 03:12 PM
Scott, slander of title is not the same thing as the slander you're thinking of. Yes, this could very well be slander of title.

ScottGem
Mar 28, 2009, 03:18 PM
Ahhh, I see. And what would be the penalties for that?

LisaB4657
Mar 28, 2009, 03:29 PM
That depends. If the OP's girlfriend had tried to sell or refi and couldn't then the association would be responsible for her damages. Otherwise the damages would probably be nominal, plus her legal fees.

Dalto922
Mar 30, 2009, 08:58 AM
She spoke with the paralegal at the lawyer's office who handles business for the condo association. She told my girlfriend that they discharged the lien because she paid the past due amount. She paralegal said it was "perfectly ok" for them to still charge her the rest because they can't keep a lien on future charges. When my girlfriend brought up the idea that the whole lien was listed as satisfied, the paralegal replied: "Why would we not make you pay the whole thing?"

I'm pretty aggravated with the whole situation, because I can't talk to them directly and ask the questions I want to ask. Is anyone familiar with what the paralegal said? If they can't hold a lien for future charges, how can they put in on the lien to begin with? What advice would you give at this point?

ScottGem
Mar 30, 2009, 01:39 PM
the paralegal replied: "Why would we not make you pay the whole thing?"

The answer to that is; "because that was what was agreed on".

LisaB4657
Mar 30, 2009, 01:58 PM
Ok, it's time to stop making phone calls and start writing letters.

Your girlfriend needs to send a letter to the condo association. In that letter she should inform them that all past dues have been paid, up to and including January 2009. She should enclose copies of all canceled checks. Then she should inform them that the prior lien was released by the association's attorney after she made the $3600 payment as he instructed. She should enclose a copy of the satisfaction of lien. Finally she should inform them that they have no basis for filing a new lien on her property, they are slandering her title, and if they do not have the lien removed immediately she will hold them responsible for all of her damages and any court costs and legal fees. She should send the letter by certified mail, return receipt requested, and she should also send a copy of the letter by regular mail. At the bottom of the letter she should make a notation that the letter was send by both certified mail and regular mail.

She should also send copies of the letter, by certified and regular mail, to the association's attorney.