Should I involve legal or settle ?

Question

I have a condo and there was water leak in the Unit below my Condo, The neighbor called their Plumbers and mentioned that there might be potential water overflow from my Unit in the report. Two weeks later I received a bill from HOA asking me to pay for their damages about 2.5K. [This include paying their Plumbers, repairs for their ceiling]

The tenants say that they didn't do anything. Also, I called a my own plumber to check for any leaks and there was nothing. I am upset because neither HOA nor my neighbor involved me from the beginning.

My concern if this thing happen again and next time the bill might for 30K as I know that Plumbers charge way less than 1.5K for finding problems, I would be liable to pay it because there could be no other potential cause. My insurance agent said my claim would be declined as they won't pay for damages in someones else unit.

I was thinking to get a lawyer involved but not sure if its worth it. Any suggestions would be really helpful.

Joe Villeneuve · Answer

First:  Just ask the HOA to give you written proof that the problem came from your unit.

Since, if what you say is true, they won't be able to and the lawyer may not be needed.

Joe Splitrock · Answer

@Kunal Balani my first concern would be that a plumber entered my condo without my permission. It seems the tenants let them in.

The plumber just looked for obvious leaks and without finding any, concluded it was an overflow. If it was an overflow, then it was probably either the toilet or the bath tub.

If the corner was wet when they moved in, that seems to imply there is some ongoing issue. That would lead me to believe it is not an overflow. You say it may be weather related. Is there some possible point of exterior water intrusion? Most HOA agreements require exterior repairs to be handled by the HOA. You could respond that the issue is exterior intrusion and refuse to pay the bill. That may force their hand to prove you wrong.

That all being said, there could be a leak in your unit that is inside the wall. Unfortunately the only way to find that out is if it happens again.

In the mean time, I would make sure the tenant has proper shower curtains. I would also look at adding an edge guard on each side of the tub to keep water from working its way out.

You would be surprised how much damage a tiny amount of water can do. A cup of water can drip for hours. It could easily just be that the toilet overflowed once or the shower curtain wasn't all the way closed.

Kunal Balani · Answer

@Nathan G. I have spoke to them but they have shown me pictures about the moist corner when they moved in the apartment.

I also think they are responsible tenants and this potentially could be weather related problem.

Andrew Syrios · Answer

As Joe said, I would demand some sort of evidence that the damage came from your unit. If nothing else, you don't want to just roll over when they out-of-the-blue send you a large bill.

Kunal Balani · Answer

@Kris L. I invest in real estate for diversification. Condos allow you to invest in good locations and big cities with lower capital. They hold their value very well if you have done your due diligence about HOA.

Kris L. · Answer

@Kunal Balani

A lot of investors avoid condos because of situations like this.

Kunal Balani · Answer

@Nathan G. Thanks for your input. There is a difference between potential problem and real problem.

Since my unit is above this will always be the potential problem in every case not just this one. If I am paying either from my pocket or my tenants, I am accepting the premise that in future I will liable by default unless I can prove otherwise. The proof of fault is on me not on them.

May be I am overthinking this but I am here to learn and protect my liability. I am trying to understand process rather than determining the fault. I am happy to pay for damages if process requires me to do so.

Your point about HOA relying on plumbers report makes sense. However, if that is the case it should be their Rules and regulations and not specific to my case. Also, if that’s the case are they within their legal bounds to add something like this in their rules and regulations.

I have rented in past and I have been as a tenant on this side. I remember HOA folks came to my apartment to personally supervise the plumbing. The owner discovered their problem in their unit as opposed to mine.

May be I am overthinking this but I believe bigger pockets was designed precisely for this :)

Nathan Gesner · Answer

The HOA is holding you accountable because your unit is the source of the water. It is 100% reasonable because a licensed professional told them the water was coming from your unit. If you can prove the water came from outside (e.g. a roof leak) then I suppose you could contest the charges and try to make the HOA liable. However, that's a hard case to make when you have two plumbers - including your own - claiming it was caused by overflow.

The HOA is not required to contact you first. They are not professional plumbers. Water leaked into an apartment, a plumber was sent to fix it, the plumber claimed the water came from your unit, so the HOA believed the evidence presented and sent you the bill. The HOA isn't designed to investigate every maintenance problem, determine who may potentially be involved, and then contact every person and ask permission before acting.

Your responsibility is to either accept the HOA findings or investigate on your own. You sent your own plumber and he agreed with the HOA assessment. If you're still not satisfied, hire a roofer to look at the roof and gutters. Hire a siding expert to see if water is leaking in through the walls. If you find additional evidence that the water came from somewhere other than your apartment, present that to the HOA and contest the charges.

Personally, I think you're wasting your time. Two experts said the water came from overflow. The information you've shared with us supports what the plumbers said.

Kunal Balani · Answer

@Nathan G. If required I am will go to tenant. There are multiple problems here

1. Can HOA hold be accountable by default just because my Unit is upstairs ? It seems like they are not considering the alternative that there could be other potential fault.

2. If I was liable by default, they should have reached out to me and asked me to call my plumber. Can they bill me for any absurd amount and expect me to pay for it ?

I am worried about a similar situation. It’s easy to hold accountable when you know that law is on your side.  I am trying to understand what is HOA is being unreasonable before I pursue my tenant.

Kunal Balani · Answer

@John Underwood there was no leakage found. They had full inspection done twice.

Should I involve legal or settle ?

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