With the rise in the number of homeowners that are becoming delinquent on their assessments, management companies and homeowners associations alike more and more frequently have to deal with the problem of “restrictive endorsements” being placed upon checks that are written to pay for assessments.  A restrictive endorsement is an indication sent with, or written on the payment, that either defines what the check is written for (such as Assessments for June, July and August) or specifically states that it resolves all outstanding amounts owed. For example, it is becoming increasingly common for homeowners to send in checks that include language indicating that cashing and depositing the check will operate as a release of all claims against the owner.

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