Common to all HOAs are homeowners who are at one time or another delinquent in their association fees and payments. The association will send out delinquency notices to those homeowners to collect overdue payments and resolve the issue. When homeowners still fail to make payments, an HOA may be forced to take legal action. But what if the homeowner never received, or claims to have never received the notice sent to them by the HOA? Whether intentional or not, the “Mailbox Rule” can protect HOAs against these assertions.
What is the Mailbox Rule?
A common law principle of contract law, the Mailbox Rule presumes that mail that is properly addressed and mailed with the correct postage was in fact received by the addressee, regardless of whether or not they claim to have received it. Should a dispute be taken to a court of law, the Mailbox Rule may be cause for a judge to rule in favor of the HOA, provided that they mailed the notice of lien or delinquency to the correct address and with the proper postage.
Extra Steps
To ensure that the Mailbox Rule works in their favor should a dispute arise, HOA boards and managers should implement the following in their day-to-day operations:
- Know the rules. If an association’s rules state that notices must be sent via certified mail, they must be sure to do so. It’s also a good idea to send those same notices via regular mail, since a homeowner can refuse the delivery of a letter sent via certified mail and invalidate the mailbox rule.
- Update addresses. If a notice is sent to an old or incorrect address, even unintentionally, the Mailbox Rule does not apply. HOAs should maintain and frequently update homeowners’ addresses and contact information.
- Keep detailed records. To further prove that a notice was sent, it’s crucial for the association to keep copies of all notices, including when and to whom they were mailed.
- Communicate with homeowners. Often, simply showing a homeowner the copies of notices that were sent is enough to help them recognize their error and resolve the dispute without litigation, avoiding costly legal fees for both parties.
Although common, HOAs need not worry about how to refute a homeowner’s claim that they did not receive notice of their delinquency. Coupled with the Mailbox Rule, putting the proper procedures and practices in place can ensure that all fees are collected quickly and without conflict.
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