Hi

I am a member of a 3 person owners corporation, each with one third liability. We used to employ the services of an outside contractor to mow the common property lawns. It was agreed at at an AGM one of the owners corp members would replace the contractor. This person would send an account to the Owners Corp under his business name. As with the other two members, that person would still be liable for one third of the bill.

The account was for the amount of $600. That person now wants the entire amount of $600 recognised in lieu of his Owners Corp yearly contributions. All members contribute $1000. That person now believes he only needs to pay an extra $400.

Is it not correct, as that person was liable for one third of the $600, their contribution should only be recognised as $400? This would result in him still owing $600 toward Owners Corp contributions?

Thanks for any advice.

Hi

I am a member of a 3 person owners corporation, each with one third liability. We used to employ the services of an outside contractor to mow the common property lawns. It was agreed at at an AGM one of the owners corp members would replace the contractor. This person would send an account to the Owners Corp under his business name. As with the other two members, that person would still be liable for one third of the bill.

The account was for the amount of $600. That person now wants the entire amount of $600 recognised in lieu of his Owners Corp yearly contributions. All members contribute $1000. That person now believes he only needs to pay an extra $400.

Is it not correct, as that person was liable for one third of the $600, their contribution should only be recognised as $400? This would result in him still owing $600 toward Owners Corp contributions?

Thanks for any advice.

You question is not an accounting question but a legal one. Your calculations are correct and it is a matter for your board to determine whether they will allow setoff for the debt. No doubt your agreement has a provision for arbitration if you cannot reach an agreement but you should begin with a meeting and a discussion of the issues

Thank you very much for your advice paraclete. The board will have to decide and yes, we do have a dispute resolution process. A meeting to clarify and discuss will be the first step.

I was undecided as to which forum I should post, accounting, legal or real estate.

Once again thank you.