Timeline for collection process according to 23 M.R.S.A. §3104
Highlights of collection process from 23 M.R.S.A. §3104.
http://legislature.maine.gov/statutes/23/title23sec3104.html (accessed 1/31/2018)
The [RA] commissioner or board may cause to be recorded in the county's registry of deeds a notice of claim for money owed... that is more than 90 days delinquent...
Before recording such notice... the [RA] commissioner or board shall give the owner… written notice... of the intended action if the debt is not paid within 20 days of the date of the written notice.
This written notice... must be sent at least 30 days before the recording of the notice of claim.... (RA = Road Association)
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BILLING DATE: Assessment notice mailed to property owners (Due Date specified).
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/ - - - - - 30 days to pay assessment before it becomes overdue (typically).
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DUE DATE for receipt of payment. Day #0 for start of collection process clock.
/ Day #1: Unpaid bill overdue (reminder of RA debt collection can be sent).
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/ - - - - - 60 day waiting period
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/ Day #60: Unpaid bill now 60 days past Due Date.
WRITTEN NOTICE warning owner of a filing Notice of Claim, if debt is not paid within 20 days, can be sent by First Class Mail on Day #61.
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/ - - - - - 20 day waiting period
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/ Day #81: Debt payment due per Written Notice of warning.
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/ - - - - - 10 day “no action” period
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/ Day #90: Unpaid bill is now 90 days past Due Date.
NOTICE OF CLAIM (notarized) can be filed at County Registry of Deeds on Day #91.
IMPORTANT NOTE - 23 M.R.S.A. §3104 also says:
After June 30, 2018, any money owed pursuant to section 3101, 3102, or 3103 is not an obligation that burdens the parcel or runs with the land upon transfer of any owner’s interest unless a notice of claim is recorded in the county’s registry of deeds prior to transfer [sale of property].
P.E. Dunn 10/25/2017; P.E. Dunn & R. E. Willey (rev.) 12/15/2017, rev. 1-31-2018.
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I have reformatted and hopefully clarified the timeline in Message # 5647083, and added notes on replies dated 12-29-17 to 1-10-18. Thanks for your comments and suggestions. I hope the revised timeline (above) is helpful.
Notes on Reply # 5652874
A road association (RA) can file a Notice of Claim when payment of an assessment is more than 90 days overdue/delinquent (23 MRSA Sec. 3104). In Dunn’s 4/23/2016 timeline a Written Notice of the intended action is mailed to the property owner after the 90-day time period has elapsed (day 91). The text of Sec. 3104 indicates that a Written Notice may be sent earlier on, but cannot take effect (recording the Notice of Claim at Registry of Deeds) until 90 days has elapsed, as shown in the Dunn–Willey (rev.) 12/15/2017 timeline. Mailing the Written Notice on day 61 has the practical effect of allowing the filing date of a Notice of Claim to be on day 91 rather than on day 121 after the Due Date. There is no change in the 90-day delinquency period stipulated in the statute.
The re-examination of the Sec. 3104 text and the revised timeline is related to a specific case. Our RA was concerned that a property, where no payment of the annual assessment had been made, would be sold before a Notice of claim could be filed. For us the 30-day difference in filing a Notice of Claim was important in order to preserve our ability to potentially recover the unpaid assessment.
With regard to Notices of Claim already on file, it is unclear whether the new rules in Sec. 3104 (effective date 6-30-18) will apply retroactively to them. I agree that it would be prudent for a RA to file a Notice of Extension for any claim, regardless of when it was filed, every 18 months until the debt is paid.
As expressed by the commentator, sending the Written Notice (Notice of Warning) and Notice of Claim by first class mail is the preferred option. After double-checking with the post office, signatures of delivery for both Certified and Registered mail are by the recipient (who may choose not to accept delivery of the mail).
Notes on Reply # 5665005
Our road association (RA) bylaws stipulate that member approved “assessment[s] shall be paid to the Association within thirty (30) days of notice of assessment”. The mailing date for our notice of assessment date is the Billing Date in the “Timeline”. Our notice of assessment also identifies the Due Date and an assessment not paid on or before the Due Date is considered overdue. The 30-day payment period is in line with common commercial billing practices.
If an assessment continues to be unpaid, the RA must wait 90 days past the Due Date before initiating a formal action, filing a Notice of Claim, to recover the debt. A Written Notice, warning the property owner of a Notice of Claim if debt remains unpaid, must be sent 30 days prior to filing a Notice of Claim.