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Condos Getting Sued For Overcharging

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Recently read an article in Miami Herald “Condo rip-off: Tenant sues association over high fees”. If you deal with condos, you, probably, run into those high fees charged to Sellers, Buyers or Tenants.

In Florida we got to the point that recently enacted legislation governing Estoppel fees…

But there is something very interesting in this lawsuit. It is a class-action suit, and it is “the first of several class-actions that attorneys say they plan to file against condo associations over high fees.” (read the full article here)

The suit was brought by a tenant who claims he was forced to pay $625 in non-refundable fees.

$100 for a background check;

$175 for administrative fee;

$125 for registration;

$225 for move-in

Well, maybe this would stop Condo Boards and CAM companies in their never-ending quest for unearned money.

Image by studio tdes via Flickr.com/creativecommons
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Jon Zolsky is a condo broker in greater Daytona Beach Area

 

Comments (14)

Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

We have a similar law in California enacted to put a damper on excessive fees, but we still seem to be paying them. They charge $250 for emailing HOA docs. The action doesn't justify the cost.

Sep 24, 2017 08:55 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents - ouch, I do not know how you can justify outrageous charges for emailing anything. Crazy people

Sep 24, 2017 09:07 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Jon Zolsky, Daytona Beach, FL I am pleased to see this occur. It seems many of these junk fees not only come from the condo associations, but the condo management companies. How hard is it to generate an estoppel letter? It's is thievery to charge these abusive fees.

Sep 24, 2017 09:48 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jon - I hope this catches on here. It isn't even the HOAs but rather the management companies they hire - there's one here that charges $500 for a change of ownership, but $750 if it's a foreclosure.

Sep 24, 2017 11:21 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Very interesting Information Jon Zolsky, Daytona Beach, FL   So glad you have posted this

Sep 24, 2017 01:58 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It is important that those who own condos treat their renters with respect! It is much more likely that the renters will then return the respect. If you're overcharging... you're not respecting them. Glad to see legal action being taken!

Sep 24, 2017 02:03 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 - agree with you wholehertedly. I was waiting for an estoppel from the company, and their policy was 14 days. So, I called on the 14th day, and aked, and he said that we have to give them 14 days. I told him this was the 14th day, and the end of the day, and we didnot have it. He checked, apologized and we had it in 15 minutes. So this only took him 10 minutes to generate the document, but they would force you pay a lot and then wait 2 weeks for that.

Sep 24, 2017 02:16 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dick Greenberg - I think you should see it soon there, as if attorneys here figured they could make a case for class-action, your attorneys may follow the suit.

Sep 24, 2017 02:17 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Hannah Williams - thank you.

Sep 24, 2017 02:17 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900 - Michelle, this is not against the owners, it is against the Boards and Management companies for the Boards

Sep 24, 2017 02:18 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Some management companies create profit where no profit is earned.  A status later saying the seller is current on payments?  $50?  $100?  Ridiculous either way.  5 minutes max to fill out a form letter.

Sep 24, 2017 03:23 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Liz and Bill Spear - yep, unearned income

Sep 25, 2017 07:15 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Jon, I have to say the association where I own 2 condos in Destin,Florida is very pro owner so fees stay as low as possible.

Oct 18, 2017 08:59 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Mike Frazier - considering that board members are people, that own there, it should be expected, but this is not always the case. They often hire management companies, and those charge you exorbitant amount of money for every document you request

Oct 20, 2017 03:47 PM