Can A HOA Put A Lien On Your Home?
Most residential communities have a homeowner’s association (HOA) structure that ensures a well-maintained environment and deals with common maintenance issues. Typically if you are looking to buy a townhouse, condominium, or single-family home in a planned community, you will encounter an HOA structure. But how much power does a homeowner’s association have? Can they go as far as placing a lien on your home? Let’s find out!
Buying property in a planned development often requires you to join the community’s HOA. While that might spare homeowners from some responsibilities, they still have some obligations towards the HOA and the community. The restriction imposed on community members, the services provided by the HOA, and other rules are featured in the association’s covenants, conditions, and restrictions (CC&R).
It’s important to note that not all HOA’s are similar, and homebuyers looking for a home in a planned development could run into poorly managed HOA’s where no one takes the board seriously, or they could run into very restrictive structures. That is why learning its rules before becoming a member is crucial to understanding if you will fit into the community or not. Everything you need to know about the planned development under an HOA should be featured in the CC&R.
Knowing the rules becomes increasingly important, especially if some HOA has the power to file liens or even take your house for breaking the rules or missing payments. Pay particular attention to the rules and regulations to determine if the HOA can foreclose on your property for nonpayments or fees, fines, or other CC&R violations. You can learn more about the association rules and regulations on the internet or by contacting them directly. You can also find a real estate agent in the area where you plan to close a real estate transaction.
Some states place restrictions on HOA’s ability to foreclose or place a lien on your property, but not all do. That is why checking the CC&R should highlight everything you need to know about an HOA’s ability to foreclose on your property or put a lien on it for breaking the rules or missing payments.
Popular Real Estate Questions
Popular Real Estate Glossary Terms
Law involving noncriminal issues such as breach of contract, libel, slander, and accidents. ...
Residence units owned by the government and available to low income families at a nominal cost. ...
A binding arbitration is a way to solve disputes without going to court. An alternative to the more expensive and lengthy legal procedures, a binding arbitration is basically the process ...
Clause inserted into a commercial lease by a mortgagee stating the lessee's current lease will not be terminated if there is a foreclosure action against the landlord for the failure to ...
The occupancy ratio is the ratio of rented or used space to the total amount of space available. An occupancy ratio or occupancy rate is used by analysts when hospitals, senior housing, ...
Permits oral evidence to augment a written contract in certain cases. ...
Conversion of real property into money. The breaking up and selling of a real estate company for cash distribution to its creditors and then owners. Chapter 7 of the Federal Bankruptcy ...
A charge based on the asset value of a real estate security portfolio to manage it. For an open-end mutual fond, the management charge is included in the selling cost of the security. ...
Loan in which two or more lenders participate in the total financing of a single mortgage. The lenders in a piggyback loan do not necessarily have equal shares. ...
Have a question or comment?
We're here to help.