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Maine Alliance for Road Associations

Non-Payment of Past Assessments

  • 14 Sep 2015 9:43 AM
    Quote
    Message # 3525741
    Deleted user

    we have 2 members who have not paid their road assessments for several years. We have sent letters, registered and unregistered. One lives in Arizona so filing a small claims court process is hopeless. As an association under the state statues can we place a lien on their property or do we have to use the small claims process??
  • 15 Sep 2015 8:28 AM
    Quote
    Reply # 3527355 on 3525741
    Deleted user

    I don't understand why you cannot file a lien against someone from out of state. You are attaching the property, not so much the person.
  • 15 Sep 2015 9:04 AM
    Quote
    Reply # 3527391 on 3525741
    Anonymous member (Administrator)

    One of the benefits of becoming a statutory road association is the ability to file a lien on the property of those who do not pay their dues.  Our association is in Cumberland County -- the lien filing process is very straightforward.  I filed a lien for non-payment two months ago at the Registry of Deeds in Portland -- it took about 5 minutes.  The lien attaches to the property so it does not matter that the owner doesn't live in Maine. 
  • 15 Sep 2015 9:05 AM
    Quote
    Reply # 3527392 on 3525741
    Deleted user

    The question had to do with whether we could do a lien rather than small claims. The Arizona issue only arose because the Maine small claims process is expensive and if you have to serve a notice it has to be done by the sheriff. To serve papers in Arizona would be very expensive. This owner has ignored the letters and small claims notices we have sent him.

    I realize the lien is on the property in Maine. This resident is boycotting because he thinks we should extend our road to his property and it has been voted down twice, overwhelmingly, by the association membership.
  • 15 Sep 2015 9:07 AM
    Quote
    Reply # 3527394 on 3525741
    Deleted user

    The main reason I raised the question is because it one time it was recommended that we use small claims rather than a lien. If we can do a lien, I'm on it!!

     
  • 19 Sep 2015 3:07 PM
    Quote
    Reply # 3534084 on 3525741
    Anonymous member

    You have not as yet said whether your association is formed under Title 23 or as a Nonprofit under Title 13B. I replied to a similar question some time ago with Reply #3074602. If you are a "statutory" association under Title 23 the following is my suggested procedure which I follow:

    "This assumes your association is a statutory association established under Title 23. [An association established under Title 13-B (Nonprofit Corporation) will likely require filing in small claims court which I cannot comment on.]

    Set a date when payments are due, approved by members at an annual meeting, then follow 23MRSA3104. If payments are not received according to a time specified then the association can follow the Notice of Claim procedure which hopefully will bear fruit at some point even though it may be in the future but interest has been accumulating. We use the interest rate that our town applies to unpaid property taxes, currently 7.00%."

    Remember that the current revision to MRSA 23 uses the words "Notice of Claim" rather than "lien". I personally was not happy when the legislature changed the wording because most people who own property know what a "lien" means and it sure gets their attention. I'm not sure Notice of Claim has the same force but I do further suggest that the new wording be used to make any such document conform to the law. In recent collection action I have used the Notice of Claim wording but have also, in parenthesis, printed (LIEN) in the title just to call attention.

                            The Maine Alliance for Road Associations


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