Full question:
I'm the treasurer of our property owners association and need to place liens on property owners who have not paid their dues, as per our restrictive covenants filed in our articles of incorporation. What form do I use?
- Category: Real Property
- Subcategory: Liens
- Date:
- State: National
Answer:
A condominium or homeowners association may record a lien against a property owner's property to protect its interests when dues are unpaid. The governing documents of the association typically outline the process for assessments, collections, and defaults. Once assessments are in default, the association usually has a continuing lien against the property.
This process may include sending demand letters and recording a Delinquent Assessment Lien. If necessary, the association can proceed with non-judicial foreclosure. The specific forms needed, such as notices of delinquency or notices of lien, depend on the governing documents. You can search for sample forms by typing 'assessment' in the search feature on our site. Additionally, contact your local county land recorder's office for further forms.
In North Carolina, for example, any assessment that remains unpaid for thirty days or longer constitutes a lien on the property once a claim of lien is filed in the clerk of superior court (N.C. Gen. Stat. § 47C-3-116). The association's lien is generally enforceable in the same manner as a mortgage, but certain conditions apply, such as limitations on foreclosures for fines or specific fees. The lien must be enforced within three years of being filed, or it will be extinguished.
To file a claim of lien, it must include the association's name and address, the record owner's name, a description of the property, and the amount of the lien claimed.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.