Question: I heard that fees are now deferred until settlement, but an association is asking for payment up front. How can this be?

Answer: The Code is  clear on this issue for CIC managed associations. No such association or CIC manager shall require cash, check, certified funds or credit card payments at the time requests are made for packets or certificates, packet or certificate updates or financial updates. The fees shall be collected at the time of settlement and shall be payable from the settlement proceeds. If the property does not settle within 45 days, the association or its manager may then assess those fees against the lot owner.

For non-CIC managed associations, payment deferral options are less clear. The Code is silent about when payment is due for the initial packet or certificate request. The law does state that payment for updates shall be collected at the time of settlement. One may argue that the intent of the legislation was to defer all payments to settlement. However, until this section is clarified, associations without professional management may continue to request payment at the time of the packet request.