Overview of an HOA lien

| Apr 26, 2021 | HOA and COA

Homeowners’ associations have become much more commonplace over the past few decades in Florida and across the country. HOAs exist to create and enforce community rules and regulations as well as to provide certain specifically delineated services for residents. Homeowners that are part of an HOA pay a recurring fee. In addition, there may come a time at which a homeowner is directed to pay additional funds, including as a sanction for some sort of regulation violation. If a homeowner becomes delinquent on an HOA membership fee or fails to pay some other type of monetary assessment, the organization itself can take legal action. This may include a situation in which an HOA places a real estate lien on a member’s home title.

Impact of an HOA title lien

Depending on the community in which a residence is located, a lien placed by an HOA can have one or both of two important consequences. First, HOA laws permit a homeowners’ association the ability to collect the amount of money due and owing from the proceeds of a sale. Title cannot be transferred until the lien is satisfied.

Second, in some situations, an HOA is able to foreclose on the lien it places on a home. This can mean that the property is placed on the market for sale, despite the wishes of the homeowner.

A homeowner facing an issue with an HOA attempting to take action in regard to a lien should seek legal counsel. A real estate attorney can assist in navigating through this type of situation with a Florida homeowners’ association.