Full question:
Hi, I'm treasurer of an HOA and we have the right to put a lien on homeowners when they do not pay their dues. We have a homeowner who is 2 years delinquent. We would like to put a lien on his home. What steps do we take and what forms do we need? Our assessors office weren't helpful in this matter. Thanks
- Category: Real Property
- Subcategory: Homeowner's Association
- Date:
- State: Colorado
Answer:
Homeowner associations often charge monthly fees or dues to maintain common areas, and can levy assessments on residents for major renovations or repairs. The fee policy depends on what the governing association determines it to be. In some cases, residents who either cannot or will not pay required fees can face foreclosure. Associations may decide to bring legal action against a resident for alleged violations of the bylaws or covenants that are not resolved. A court of law which has jurisdiction over the parties and the subject matter may render a formal judgment for or against the resident. If a court judgment for money damages it obtained, it may still be necessary to levy on the judgment debtor's property to collect the amount due. I suggest contacting the local clerk of courts, as procedures regarding enforcement of liens varies by court.
A condominium or homeowner’s association (and in some instances a cooperative) may be able to record a notice of lien against a member’s saleable property to protect a purchaser accepting a deed to a lot which is subject to a declaration of covenants recorded against the property binds that purchaser to the provisions of that declaration as it is a covenant running with the land.
The terms and conditions of levying assessments, collections, default, etc. are typically described in the governing documents, with a statement that the association has a continuing lien against the real property once the assessments were deemed to be in default. Further, most declarations provide that the association has the right to foreclose their lien although without exception there is no explanation as to that procedure and there is no statute on this subject.
This process may include, but is not limited to, sending demand letters, recording of a Delinquent Assessment Lien, and if necessary, proceeding with a non-judicial foreclosure. The specific forms required, such as notices of delinquency or a notice of lien to the debtor, etc., depend on the terms of the governing documents.
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.
