Can I withhold my condo assessment money in escrow until financial documents are released?
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Answer:
Homeowner associations often charge monthly fees or dues to maintain common areas, and can levy assessments on residents for major renovations or repairs. The fee policy depends on what the governing association determines it to be. In some cases, residents who either cannot or will not pay required fees can face foreclosure. Associations may decide to bring legal action against a resident for alleged violations of the bylaws or covenants that are not resolved. A court of law which has jurisdiction over the parties and the subject matter may render a formal judgment for or against the resident. Courts of law may award monetary damages, impose injunctions, impound vehicles, or compel removal of personal property such as pets. They may empower the association itself to take action, or compel relief through other resources, such as local police.
Typically, the right of a third party to inspect business records falls under the rules of discovery when a lawsut is filed. Business records can be requested through a request for production or requested to be brought with someone like a witness or person being deposed with a subpoena duces tecum. A complaint for an accounting may include a discovery request for records to be provided.
It may be possible to create an agreement to place the funds into an escrow account until the matter is resolved. The escrow agreement will contain the instructions for when the funds may be released by the escrow agent. It may also contain other terms, such as one party agreeing not to assert a lien on property until a disputed claim is resolved. I am prohibited from giving legal advice. I suggest you contact a local attorney who can review all of the facts and documents involved.