OCEAN CITY CONDOMINIUM ASSOCIATIONS: A CAUTIONARY TALE

Sometimes buying a condominium is a good investment, and a nice way to share resources, time and expenses within a community of unit owners. Sometimes things can go terribly wrong. Salisbury News asks its readers to opine on the following case:

In late 2006, the Samuel Young and Jean Young purchased a condominium unit at the Orleans Court Condominiums in Ocean City, Maryland for $173,000.00. It is a small condominium, but the Youngs, along with their adult son Devin, worked hard to save and hoped to relax and spend summer weekends in Ocean City.

Shortly after the Youngs purchased their unit, the Orleans Court Condominium Association decided it would undertake a large, mostly cosmetic renovation project intend to improve the "façade" of the condominiums. In December of 2008, the Youngs got a bill for $30,638.61 as a "special assessment" for this project, and were informed that they were pay within 10 days. The Youngs did not pay the special assessment because of concerns that the charges were not legitimate. The main concern, according to the Youngs, was that the renovation project was improperly approved, without a vote, by an unelected Board of Directors. In early 2011, Orleans Court charged a second "special assessment" to the Youngs and other unit owners in the amount of $4,676.00. This second special assessment, according to Orleans Court, was due on February 1, 2012. At the time, the Youngs did not know what reason or purpose Orleans Court intended to put these funds to use. The Youngs did not pay the two bills for "special assessments."

On April 14, 2016, the Youngs were given notice by the Orleans Court Condominium Association that their unit would be sold in a foreclosure sale. No bank or lender is involved; this is purely a dispute between a condominium association and a unit owner. The amount the Youngs owe, according to Orleans Court, is $104,710.80. Much of this amount is interest (18%), "collection costs" and attorneys' fees. To stop the foreclosure, the Youngs have been told they must immediately "pay the full amount due, including late charges, interest, costs of collection, attorney's fees, trustee's fees and other foreclosure costs. A certified or cashier's check will be required."

The Youngs' story may be extreme, but it is not entirely unusual. 

Almost $50,000.00 in interest.

Condominium Associations, if unwatched, have a tremendous amount of authority, whether unit owners agree with their decisions or not. Now, in the Young's case, their own Condominium Association is attempting to foreclose upon them-not because the Youngs failed to make their mortgage payments; the Youngs pay every month in full and on time. Not because they are bad neighbors; there is simply no evidence of that. They Youngs may lose their condominium because they did not pay charges they thought were improper. Right or wrong, they are now looking at a bill that exceeds $100,000.00, and in today's economy, the assessments and dues may be greater than the fair market value of the condominium unit itself. There are two sides to every story, and Salisbury News would like its readers' input on this matter.