How does an association secure its lien rights?
Condominium associations have a statutory lien under the GCA. Homeowners associations subject to the POAA also have a statutory lien. The GCA and POAA establish that the association has an automatic, statutory lien for unpaid assessments, late charges, interest, and collection costs, including reasonable attorney’s fees actually incurred. No physical filing of the lien is required. The GCA and POAA require closing attorneys and title examiners to contact the association for a statement of any amounts owed to the association in connection with any sale or refinance of a unit or lot within the association. The recording of the association’s Declaration constitutes record notice of this automatic, statutory lien. This statement serves as the notice to the closing firm of the amount of the lien against the property. If the association is not paid out of the proceeds of a sale, the purchaser may become liable for the full amount owed to the association from the prior owner, if the associati
