Non Payment of Condo exceptional charge

Share experience regarding ownership of property and/or living in Portugal.
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Fergie
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Non Payment of Condo exceptional charge

Post by Fergie »

I have my holiday home in a small condominium with a number of permanent residents.
We have very essential maintenance work to be done urgenty and agreed a substantial quotation with a contractor, however one owner is refusing to pay, pleading poverty.
The other owners have agreed to make up the shortfall to get the work done and then take whatever action is necessary to get the non payer to pay their proper share.
This is a topic that I have not seen discussed on the forum.
Does anyone have any experience of this problem or recomend a lawyer for some advice ??
logicbob
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Re: Non Payment of Condo exceptional charge

Post by logicbob »

We had the same problem in a road that I used to live in. We wanted to have the road made up as it was a dirt track and in the winter it was the pits. There were eleven houses in the road of which three did not want to pay so the other eight coughed up the cash to have it done. If there is no formal contract on repairs and renovations then I doubt that you can make any of the owners contribute to the costs.
Bruce Wallis
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Re: Non Payment of Condo exceptional charge

Post by Bruce Wallis »

If the charge is part of a legally binding contract, signed as part of the occupiers purchase agreement, then the management company administering the site have the right to take the individual to court, and failing all other means of persuasion, should be encouraged to do so. If no such action is forthcoming, the management company will just divide the debt between the rest of you, by loading next years price rise.
Farol
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Re: Non Payment of Condo exceptional charge

Post by Farol »

Who owns the freehold? As it's a small development perhaps you own it jointly in which case the maintenance company act for you and, therefore, ultimately you are all equally liable but then have to jointly take action against anybody refusing to pay. If you do not own the freehold then the freeholder probably is ultimately liable and it would be for them to take action against any property owner that refuses to pay their charges. Either way this needs legal input based on what contracts exist. I suggest that you need to see a lawyer in Portugal.
sam
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Re: Non Payment of Condo exceptional charge

Post by sam »

In Portugal legal action is very expensive and time consuming. If the other party are legally bound to contribute then action can be taken and the debt offset against their property. This makes it difficult for them to sell, more expense and stress for them and will no doubt affect their credit rating, all making life difficult for them. This threat alone may produce a positive response. I agree you need legal advice. If they cannot pay it all up front is there a way that they can pay in in installments?
I have a lawyer (Albufeira based) who acted quickly for us when we had a dispute with a neighbour. The neighbour was not resident and did not reply to any communication from us until the lawyer became involved. The situation was then resolved amicably. If you want their contact details - pm me.
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