Are check memos binding?

Have you ever written a check to your association and put "for assessments only" in the memo line? Did the association re-assign that payment to another charge or debt? Is that legal?

Read this article:

https://www.levelset.com/blog/beware-checks-payment-in-full-memo-mechanics-lien-rights/

If the board passes a collection policy permitting re-assignment without following the notice and other procedures of Real Property 11-111, your attorney may be able to challenge the re-assignment. For the passage of rules, the law refers to two entities:

(1) the council of unit owners

(2) the delegated "body", such as a board or committee

If your governing document identifies the governing body as the council of unit owners, is the intention of the law to empower one or both bodies? If both, can the lesser body restrain the greater body in a conflict?

If your Declaration identifies the governing body as the council of unit owners, but the bylaws delegate power (to adopt rules) to the board, is this considered a conflict? A conflict would exist if the governing body is not allowed to govern? A conflict would not exist if the board is allowed to act subject to, or in the absence of, any action of the council? Consider the following:

§11–124.

(e)    If there is any conflict among the provisions of this title, the declaration, condominium plat, bylaws, or rules adopted pursuant to § 11-111 of this title, the provisions of each shall control in the succession listed hereinbefore commencing with “title”.

Ask your attorney if the Declaration controls despite delegation in a bylaw.

This article has been republished with permission and does not necessarily reflect the opinions of CHARM.