Maybe. If the homeowner's association (HOA) has written, recorded covenants and/or bylaws that require the payment of dues, liens can be filed for non-payment of those dues. The laws regarding HOA liens vary widely from state to state. I suggest that you see a real estate attorney in your area to discuss your particular situation. Or, better yet, try to work out a payment plan with the HOA. That will save you and the HOA a great deal of stress and money.
Another Answer:
Read your governing documents to understand your obligation to pay your monthly assessments. Since assessments pay for services to property you own in common with your neighbors, such as master insurance policy premiums, reserve funds and basic utilities, when you don't pay your assessments, you essential ask your neighbors to pay your bills.
If you are obligated to pay your assessments, the association can not only file a lien to collect the debt you owe, it may be able to sell your unit to satisfy the debt.
Yes, as long as the HOA covenants were recorded in the land records prior to the purchase of the property and as long as the HOA follows the proper legal procedure. You should review the document that created the HOA to determine how delinquent dues and assessments will be collected.
Your question sounds like this series of events took place:
If the scenario above reflects the string of events, it's reasonable that the association recover its debt.
Contact a condominium-savvy attorney and ask for guidance about how to recover the debt represented by the original lien.
Read your governing documents to determine the association's responsibility to collect -- and the owner's responsibility to pay -- assessments. Yes, generally, the HOA can file a lien against the owner's title, and as a last resort, foreclose a property. The association may not be able to recover all of the past-due assessments, depending on the state statute.
Yes. Liens are a specialized function of the law and may require the services of a common interest community-savvy, and local, attorney.
Your answer depends on the nature of the HOA lien, the nature of the bank lien, the state law and the governing documents in effect for the HOA. There is no standard.
It would be improper for an HOA to file a lien if there is no legal reason to file such a document.
No. There must be (a) recorded instrument(s) giving the authority for a HOA to file a lien.
Best practices dictate that you take the lien filed against the vehicle to an association-savvy attorney and request guidance.
It is unlikely that an irrevocable trust gives the property any immunity from liens.AnswerYes. If the property is owned by an irrevocable trust the HOA can place a lien against the property and the trust. The HOA should research the trust so that the present trustees can be mentioned on the lien. Although debts are sometimes difficult to collect from a trust, the property cannot be sold or mortgaged unless the lien is paid.
The current owner will inform you as to the monies due to the HOA at the time of sale. If the HOA has filed a proper lien on the title to cover past assessments, then yes, they are paid as part of the sale.
Best practices dictate that you work with the association attorney to prepare and file any lien on the part of an HOA. An improper lien, or an improper filing of a lien can be used by the owner to escape the action.
A lien can be placed upon any property if first, there is a judgment. You first have to have a judgment, where a debt is actually proven in a court of law, leaving a judgment. THen, if not satisfied, they certainly can lien your house. Anyone holding a judgment that is not satisfied can lien your house.
The lien can be reported to a credit reporting agency.
Yes. A note on the interest part--your state's law will dictate what interest, if any, you will receive. And you will assume the HOA's liability--if the lien is later declared invalid, you will be responsible for the homeowner's court costs. Make sure that it is a part of the sale of the lien that the HOA will cooperate in any foreclosure proceedings that might occur to collect the lien--without them, the homeowner will likely win.
The association counsel that filed the lien for the association can answer your question.
A lien clouds title to a property, which means that the property owner may not successfully transfer title to another owner until the lien is satisfied. As buyer, you are entitled to a 'clean title' to the property. The association may not file a lien against a new buyer upon purchase, since the new buyer is not obligated to pay assessments until the date of purchase and beyond.