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Seattle Times business reporter Elizabeth Rhodes posts the answers to your real estate questions as they pop up during the week. Join this ongoing discussion, which also features reader reaction to real-estate articles appearing throughout The Times.

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November 27, 2007 4:00 PM

Double dues have owner fuming

Posted by Elizabeth Rhodes

Q: Several years ago I set up automatic condominium dues payments through my bank's bill payer service. Now I've discovered that by mistake I've made double payments totaling at least $5,400. I feel pretty stupid for letting this happen, but I'm also surprised that the large management firm that collects my condo dues didn't catch this and notify me. When I brought it to their attention, they quickly repaid me, but said it's not uncommon for homeowners to pay extra. I think that's lame. Should I instigate an investigation of them for bad business practices and potentially to get additional remuneration?

A: Seattle attorney Michael Brandt, of the Brandt Law Group, says you can't ding the management company for extra bucks because Washington courts, unlike those in California and many other states, generally don't allow the awarding of punitive damages. The law prohibits it, except in a few narrowly defined situations, and this isn't one of them.

But he does think you should pursue an inquiry into your management firm and how well it's doing the work your homeowners association is paying it to do.

"What would be good would be to write to the board and tell them of your longstanding problem that was not caught," Brandt says. "It could well be happening to other association members."

You should also suggest that the board have a financial audit done (if it's not doing so already). Associations are not legally required in this state to undertake an audit, but many do annually anyway.

An audit will reveal situations like yours as well as demonstrate how the association's funds are being spent.

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