Maine Alliance for Road Associations - Notice To Pay Letter before Notice of Claim

18 Feb 2016 10:10 AM

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Message # 3829967

Deleted user

Does anyone have a sample letter to delinquent property owners notifying them that if they don't pay within 30 days a Notice of Claim will be filed with the Registry of Deeds? I have a copy of what our City sends out for delinquent property taxes but was wondering if someone had created one specific for a road association. Our road association voted to start the lien/claim process on our highest owing delinquent property owners and I am trying to cross my T's and dot my I's. I've reviewed the forums and didn't find a letter. I did find some helpful info to set a firm due date which I have not done in the past but have started doing going forward. Thanks.

20 Feb 2016 10:06 AM

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Reply # 3833927 on 3829967

Anonymous member

This is a copy of the letter we use: (hope it formats ok). Notice that we apply interest to the unpaid balance. The interest rate we use is that used by the Town on unpaid property taxes>

___________________, Road Commissioner

__________________ Road

______________, ME 04______

Tel: 207-______________

Road Fees $

Interest $

Certified Mail (Return

Receipt Requested) $

Total $

_____________________________ ROAD ASSOCIATION

ROAD COMMISSIONER'S ROAD FEE COLLECTION NOTICE

NOTICE OF CLAIM - 23 M.R.S.A. §3104

To: _______________________ OR "Current Owners of the subject property"

_______________________ Road

________________, ME ________

I, __________________, Road Commissioner of the _________________ Road Association located in _____________, Maine

in the County of _____________, said fees having been duly and legally committed to me for collection on the ___ day of _____,

20__ hereby give you this notice that fees of $---.--- remain unpaid.

The fees were assessed to real estate described as follows: Map ___ , Lot ___ at __________________ Road, Raymond, ME

and was assessed against _________________________, owner(s) or occupant(s) thereof.

A NOTICE OF CLAIM IS HEREBY established on the above-described real estate to secure payment of the road fees.

PAYMENT of said fees, together with interest of $ __.__ (which has been added to and becomes a part of said fees) and the

certified mail, return receipt requested fee of $_.__ for the sum total of $ ____.__ IS HEREBY DEMANDED OF YOU WITHIN

TWENTY DAYS FROM TODAY’S DATE, WHICH IS THE DATE OF SERVICE OR MAILING OF THIS NOTICE.

Dated at __ __________________________ Road, ________, Maine, this ____ day of ____, 20__.

· If the owner or occupant of the real estate to whom the road fee has been billed has died, this demand may be made upon the

personal representative of the owner's estate or upon any of the owner's heirs or devisees.

· The Road Association has the policy to apply all payments to the oldest outstanding road fee obligation. If you are uncertain

of the status of fees on the above-described property, contact the Road Commissioner.

20 Feb 2016 10:12 AM

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Reply # 3833937 on 3829967

Anonymous member

Here also is a response I entered on 24 Aug 2014 as reply #3088823 to inquiry # 3073746:

"Here is the form of a letter I have used prior to the Notice of Claim. Bear in mind Title 23 no longer has the word "LIEN" in it. Full size 81/2 x 11 documents don't easily Copy & Paste into the MARA site but I think you will get the gist of it.

_____________________________ ROAD ASSOCIATION
ROAD COMMISSIONER'S ROAD FEE COLLECTION NOTICE
NOTICE OF CLAIM - 23 M.R.S.A. §3104
To: _______________________ OR Current Owners of the subject property
_______________________ Road
________________, ME ________
I, __________________, Road Commissioner of the _________________ Road Association located in _____________, Maine
in the County of _____________, said fees having been duly and legally committed to me for collection on the ___ day of _____,
20__ hereby give you this notice that fees of $________ remain unpaid.
The fees were assessed to real estate described as follows: Map ___ , Lot ___ at __________________ Road, ________, ME
and was assessed against _________________________, owner(s) or occupant(s) thereof.
A NOTICE OF CLAIM IS HEREBY established on the above-described real estate to secure payment of the road fees.
PAYMENT of said fees, together with interest of $ __.__ (which has been added to and becomes a part of said fees) and the
certified mail, return receipt requested fee of $_.__ for the sum total of $ ____.__ IS HEREBY DEMANDED OF YOU WITHIN

TWENTY DAYS FROM TODAY’S DATE, WHICH IS THE DATE OF SERVICE OR MAILING OF THIS NOTICE.
Dated at __ __________________________ Road, ________, Maine, this ____ day of ____, 20__.

· If the owner or occupant of the real estate to whom the road fee has been billed has died, this demand may be made upon the personal representative of the owner's estate or upon any of the owner's heirs or devisees.
· The __________________Road Association has the policy to apply all payments to the oldest outstanding road fee."

21 Feb 2016 5:22 AM

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Reply # 3835039 on 3829967

Deleted user

This is very helpful, thank you very much. I must have missed your 2014 post or thought it was the 'Notice of Claim' when I was looking through the forums.

25 Feb 2016 8:56 AM

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Reply # 3843847 on 3829967

Anonymous member

We have a member whose house is going into foreclosure. So there isn't a lot of incentive for them to pay their debt. Does anyone know if placing a lien on their property shows up on their credit report? That would be an incentive.

02 Mar 2016 8:50 AM

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Reply # 3855172 on 3829967

Anonymous member

You didn't say whether you are a Title 23 [statutory] road association or a Title 13-b nonprofit corporation.

Assuming you were formed under Title 23 the answer, to me, is easy. By all means follow the Title 23 statute as to timing and record a Notice of Claim at your Registry of Deeds. Do this as soon as possible. Presumably there will be a party to the foreclosure, such as a bank, who owns the mortgage. Make sure that party, any involved attorney and any involved real estate agency gets a copy of the Notice of Claim. There may be an attempt to "throw out" or ignore your Notice of Claim but don't forget, or let them forget, that the Unpaid Balance follows the land. It may take several months or even a year or two but eventually your association should be paid the balance. Be sure to continue billing each billing period (say each year) and add this to the unpaid balance. Don't forget to include interest and certified mailing costs at settlement time which will likely occur at "closing" when and if the property sells and passes to a new owner. I have followed this procedure on four different property foreclosures and have recovered every penny owed. It takes courage to stay with it.

I have not been involved in any Title 13-b collection action which I am told would require Small Claims Court procedures and apparently an attorney.

P. Dunn

02 Mar 2016 9:06 AM

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Reply # 3855182 on 3829967

Anonymous member

The following is an excerpt of what I posted in response to an earlier question. So far to my knowledge no one has disputed it:

The following is a quick summary of my understanding of the collection procedure authorized under Title 23. I welcome any review of this procedure and comments as to where I may have misinterpreted Section 3104.The following action assumes that the Board of Directors/Officers or Association has not waived payment requirement by the delinquent property owner.

Collection Procedure Timing under 23 MRSA Section 3104:

1. Set a firm date when fee payments are due; by majority vote and stated in the Minutes of the annual meeting is suggested.

2. If payment is not received within 90 days of the firm due date, collection action can begin.

3. Send “written notice” stating that the fee is overdue, a letter is suggested although email is authorized.

4. If payment is not received within 20 days of the written notice a Notice of Claim (previously a lien) can be recorded at the county Registry of Deeds. The “written notice” must be sent at least 30 days prior to recording the Notice of Claim.

5. After recording of the Notice of Claim with Book and Page stamp applied by the Registry, it is suggested that a copy be mailed to the delinquent property owner and to the Officers and Directors of the road association.

P.Dunn 8/29/2014