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How can HOAs place assessment liens on properties lawfully?

On Behalf of | Apr 24, 2024 | HOA Law |

Homeowners associations (HOAs) usually take on specific responsibilities and conduct legal procedures to maintain standards and amenities in a community. These duties can include filing documents with local or state agencies, implementing bylaws, and collecting unpaid assessments. Still, these tasks, especially those with legal repercussions, could be restricted by state regulations, such as placing assessment liens on properties.

This option is usually a last resort for addressing unpaid debt, which may continue to grow because of late fees and other charges. It can also be the first step of the process leading to the property’s foreclosure. Because of these possibilities, filing this type of lien is a significant concern. If done wrong, it can become unlawful and result in legal disputes.

Placing assessment liens legally

A crucial factor when filing this lien type is allowing enough time for the other party to respond or address their unpaid assessments. To keep it legal, the HOA should meet specific requirements. The process starts when the HOA issues an initial written notice through mail. Thirty days after sending the first notice, the association can then send a second one.

The HOA can then provide the other party with a minimum 90-day waiting period before filing the assessment lien. Additionally, assessment liens do not lead to foreclosure automatically. It can vary based on the situation and other state regulations.

Addressing HOA matters properly

Since HOAs have endless tasks related to managing communities and properties, it can be easy to miss vital details impacting the operation’s legal compliance. Seeking legal counsel could be critical to adequately prevent mistakes and address these concerns. By doing so, HOAs can improve how to fulfill duties, giving residents and members the kind of management they deserve.