Collection Fees and Lawyer’s Fees

Hi Alex,

This may depend on whether or not the fees were delinquent and what the governing documents say. If the HOA is working with a collection agent, according to the Texas Property Code Section 209.0064(b), HOAs cannot hold homeowners liable for collection agent fees unless the HOA notifies the homeowner by certified mail of:

• Each delinquent amount and total amount
• If the HOA must offer a payment schedule/plan under Section 209.0062 or the governing documents, options for the homeowner to avoid having the collection turned over to a collection agent
• A 45-day opportunity to cure the delinquency before further collection action

There are also exceptions to a homeowner’s liability for collection agent fees under Section 209.0064(c):

• The obligation for payment by the association to the collection agent for a collection action’s associated costs is in any way dependent or contingent on amounts recovered; or
• The payment agreement between the association and the agent does not require payment by the HOA of all fees to a collection agent for the action undertaken by the collection agent.

Kindly review the governing documents and the conditions surrounding the collection to verify whether or not the association can assess collection fees. Meanwhile, Section 209.008(a) allows HOAs to charge lawyer’s fees related to collections due to rule enforcement as long as the HOA provides written notice to the homeowner of the attorney’s fees and costs if the delinquency continues after a certain date. For further guidance, kindly consult a lawyer.