{"id":551596,"date":"2026-06-26T01:18:19","date_gmt":"2026-06-26T01:18:19","guid":{"rendered":"http:\/\/www.montpelierjournal.com\/news\/story\/551596\/nyc-condo-real-estate-attorney-natalia-a-sishodia-explains-consequences-of-unpaid-condo-fees-in-new-york.html"},"modified":"2026-06-26T01:18:19","modified_gmt":"2026-06-26T01:18:19","slug":"nyc-condo-real-estate-attorney-natalia-a-sishodia-explains-consequences-of-unpaid-condo-fees-in-new-york","status":"publish","type":"post","link":"https:\/\/www.nevadanewsreporter.com\/news\/story\/551596\/nyc-condo-real-estate-attorney-natalia-a-sishodia-explains-consequences-of-unpaid-condo-fees-in-new-york.html","title":{"rendered":"NYC Condo Real Estate Attorney Natalia A. Sishodia Explains Consequences of Unpaid Condo Fees in New York"},"content":{"rendered":"
\"NYC<\/a><\/div>\n

NEW YORK, NY –<\/strong> Condominium owners in New York who fall behind on common charges can face serious legal and financial consequences, including liens, lawsuits, and even foreclosure on their unit. NYC condo real estate attorney Natalia A. Sishodia of Sishodia PLLC (https:\/\/sishodia.com\/what-happens-if-you-dont-pay-condo-fees\/<\/a>) outlines the collection tools available to condo boards under New York law and the steps owners can take to protect their investment before the situation escalates.<\/p>\n

According to NYC condo real estate attorney Natalia A. Sishodia, the obligation to pay common charges is not optional under New York law. These charges fund elevator upkeep, staff salaries, utilities, insurance, and other essential building expenses, and the duty to pay them is built into both the purchase contract and state statute. “An owner cannot stop paying common charges simply because they are dissatisfied with services or board decisions,” Sishodia explains. “Section 339-x of the Real Property Law makes that obligation absolute, regardless of whether someone uses the amenities or plans to sell the unit.”<\/p>\n

NYC condo real estate attorney Natalia A. Sishodia notes that the collection process typically begins with a formal demand letter sent by certified mail, often followed by late fees and interest applied under the building’s by-laws. New York courts have struck down penalties they consider excessive, sometimes referencing the state’s criminal usury cap of 25 percent annual interest. If the balance remains unpaid, the board has authority under Section 339-z of the New York Condominium Act to file a verified notice of lien with the county clerk, which remains valid for six years.<\/p>\n

Once recorded, a common charge lien clouds the title to the unit and makes refinancing or selling extremely difficult. The amount listed in the lien can grow over time to include interest, late fees, and reasonable legal and collection costs if the by-laws permit. Attorney Sishodia points out that condo liens are subordinate to real estate tax liens and any recorded first mortgage, which can affect what the board ultimately recovers if foreclosure proceeds.<\/p>\n

If a lien alone does not prompt payment, the Board of Managers has additional remedies. The board may file a breach of contract lawsuit seeking a money judgment, which can lead to wage garnishment, frozen bank accounts, or seizure of personal property by the city marshal or county sheriff. Under Section 339-kk, the board can also direct a tenant to pay rent directly to the condominium when the delinquent owner is renting out the unit.<\/p>\n

Sishodia adds that the most serious option is lien foreclosure under Section 339-aa, which functions much like a mortgage foreclosure and can lead to a public auction of the unit. “Section 339-aa allows the board to pursue both a money judgment and foreclosure at the same time as separate claims,” she notes. “That gives the association significant leverage, and owners often underestimate how quickly these proceedings can move.”<\/p>\n

The firm advises that owners facing financial hardship should communicate with the board or managing agent as early as possible. Many boards are willing to negotiate a written payment plan, sometimes called a stipulation, that pauses legal action while the owner repays the balance and stays current on new charges. A good-faith down payment of roughly 50 percent of the outstanding balance is often expected before such an agreement is reached.<\/p>\n

Attorney Sishodia also highlights limited but important defenses that may apply, including improper notice, accounting errors, unauthorized fees, and attorney’s fee provisions that are not clearly authorized in the governing documents. “Courts in New York will not award legal fees unless the by-laws specifically allow it,” Sishodia observes. “That single issue can substantially change what an owner ultimately owes.”<\/p>\n

The firm regularly emphasizes that owners cannot withhold common charges as a form of protest or self-help. Refusing to pay because the building’s pool is closed, the gym is unavailable, or services seem inadequate does not change the underlying obligation under the proprietary contract or state statute. Disagreements with the board are properly addressed through meetings, voting on board composition, or, where warranted, separate legal action, but never by stopping payment on common charges.<\/p>\n

Sishodia points out that the financial stability of the building depends on consistent collection. When one owner stops paying, the shortfall can affect services and reserves for everyone else, which is why New York courts enforce the obligation strictly. Owners who assume more flexibility than the law allows often find that interest, late fees, and legal costs accumulate quickly once a delinquency reaches the lien stage.<\/p>\n

The firm also notes that timing matters at every step. Negotiating a stipulation before a foreclosure action is filed is generally less expensive and more flexible than trying to unwind one afterward, and lenders, buyers, and title insurers all treat an open lien as a serious obstacle to any future transaction. Acting early often preserves options that fade as fees and interest accrue.<\/p>\n

For unit owners facing a dispute over unpaid common charges or legal action from a condo board, prompt review of the governing documents and the board’s collection actions can preserve options that disappear once foreclosure is filed. Consulting an experienced NYC condo real estate attorney may help owners understand their rights, evaluate possible defenses, and negotiate a workable resolution.<\/p>\n

About Sishodia PLLC: <\/strong><\/p>\n

Sishodia PLLC is a New York City-based law firm focused on high-end residential and commercial real estate transactions, condominium and cooperative matters, foreign investment, and estate planning. Led by managing partner Natalia A. Sishodia, Esq., LL.M., the firm represents domestic and international clients throughout New York City. For consultations, call (833) 616-4646.<\/p>\n

Embeds:<\/p>\n

Youtube Video: https:\/\/www.youtube.com\/watch?v=6oo_wjNX_KY<\/a><\/p>\n

GMB: https:\/\/www.google.com\/maps?cid=12450537318741950980<\/a><\/p>\n

Email and website<\/p>\n

Email: natalia@sishodialaw.com<\/p>\n

Website: https:\/\/sishodia.com\/<\/p>\n

Media Contact<\/span>
Company Name:<\/strong> Sishodia PLLC<\/a>
Contact Person:<\/strong> Natalia A. Sishodia
Email:<\/strong> Send Email<\/a>
Phone:<\/strong> (833) 616-4646
Address:<\/strong>600 3rd Ave 2nd floor
City:<\/strong> New York
State:<\/strong> New York 10016
Country:<\/strong> United States
Website:<\/strong> https:\/\/sishodia.com\/<\/a><\/p>\n

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NEW YORK, NY – Condominium owners in New York who fall behind on common charges can face serious legal and financial consequences, including liens, lawsuits, and even foreclosure on their<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/posts\/551596"}],"collection":[{"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/comments?post=551596"}],"version-history":[{"count":0,"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/posts\/551596\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/media?parent=551596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/categories?post=551596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nevadanewsreporter.com\/news\/wp-json\/wp\/v2\/tags?post=551596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}