Homeowners’ associations rely on timely payments to maintain shared spaces, fund repairs and keep the community running smoothly. However, some homeowners fall behind on payments. One of the most effective legal tools available to HOAs is the ability to place a lien on the property.
A lien is a formal claim recorded against a property for unpaid dues. It tells the world that money is owed, and it often becomes a serious motivator for owners who might otherwise ignore collection notices. Still, using this tool is not always simple. Knowing when and how to file a lien is key to avoiding legal missteps.
Turning unpaid dues into action
Before placing a lien, an HOA must follow the rules outlined in its governing documents and comply with state laws. Skipping steps or rushing the process can cause more harm than good. Here are a few signs that it might be time to take this step:
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Long-term delinquency: If a homeowner has not paid dues in several months and reminders have not worked, a lien may be necessary
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Refusal to communicate: When efforts to contact the owner are ignored, legal action may be the only way to prompt payment
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High amounts owed: For large balances that affect the HOA’s budget, a lien helps protect the community’s financial stability
Once the decision is made, the HOA should:
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Send a formal demand letter
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Provide a notice of intent to lien
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File the HOA lien with the county recorder’s office
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Notify the homeowner properly
Each step must be carefully documented and done within the correct timeline. Mistakes can delay the process or open the board to legal risks.
Placing a lien can be a powerful way to collect unpaid dues, but it is not something to take lightly. This is why associations should work closely with a legal team. They can help ensure all steps are handled correctly and help avoid disputes in the future.