How can a condo association collect past due fees from a deceased owner's estate?

Full question:

I am a Board Member of a Home Owner's Association in Wisconsin, and we are trying to collect past due condo fees. The unit owner is deceased and his estate is being handled by his son. The unit was foreclosed upon and was sold. The condo association notified all parties involved of past due condo fees and that we had filed a lien. The association has not been able to collect the money from the realtor or grantor (FreddieMac) that is selling to the new unit owner. The lender from whom the deceased unit owner financed the unit will not pay. Nor will the son handling the estate of the deceased unit owner pay the past condo fees. How can the new unit owner obtain title to the condo if it has the association's statement of lien against it and will they simply or provide a Special Warranty Deed? Also, what steps do we need to take to collect?

  • Category: Landlord Tenant
  • Subcategory: Death of Tenant
  • Date:
  • State: Wisconsin

Answer:

To transfer title of a deceased person's property to a new owner, the estate representative typically uses an executor's deed or fiduciary's deed. A special warranty deed, which limits the grantor's liability, is similar to a quitclaim deed and is often used by entities wanting to avoid the liabilities of a general warranty deed. This deed should include specific language such as "conveys and specially warrants" and generally covers only claims arising from the grantor's actions during their ownership.

If a lien has been filed, the condo association may be able to foreclose on the property, depending on the contract terms and other secured parties involved. Alternatively, the association can file a claim against the deceased owner's estate. The estate representative is responsible for settling claims against the estate before distributing any remaining assets to heirs. When probate is initiated, the court will set a deadline for filing claims, typically between three to four months from the order date (Wis. Stat. § 859.01).

Claims not filed by the deadline may be barred, unless certain conditions apply (Wis. Stat. § 859.02). The estate representative must notify known creditors of the deadline for filing claims (Wis. Stat. § 859.07). To collect the past due condo fees, the association should ensure that a claim is filed against the estate within the specified timeframe. I recommend consulting with a local attorney to review the specific facts and documents involved.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

No, you are not required to pay HOA fees forever. However, if you own property within the association, you are responsible for paying fees as long as you own that property. If you sell the property, your obligation to pay HOA fees typically ends. Keep in mind that any unpaid fees may lead to liens against your property, which can affect your ability to sell it.