Assessment liens are an involuntary lien linked to a homeowners property for the benefit of a homeowners’ association, after any HOA member becomes overdue on their HOA assessments. This type of lien enables the HOA to sell the homeowners property to payback assessments indebted to the HOA. This type of lien also acts as a darkness on title, basically preventing a homeowner from selling or having the property refinanced that is subject to an assessment lien pending the lien being fulfilled.
How is an Assessment Lien Created?
In a lot of cases, assessment liens are involuntarily created towards a homeowners property once the homeowner becomes overdue on assessments. To give the community a notice of this assessment lien, HOAs typically record a “Notice of Lien” or correspondingly titled document with the county recorder’s office that details the property subject to the assessment lien and the amount the HOA claims is indebted.
Can my HOA File an Assessment Lien Against my Property?
Just about every HOA has the authority to put assessment liens on properties owned by association members that are overdue in assessments. There are Arizona laws that grant the same authority to HOAs. So long that the HOA are “Planned Communities” or a “Condominium” it is imparted with involuntary assessment liens. Overall, the difference between “Planned Communities” and “Condominium” comes from the way in which the communal areas in the community are owned. In condominiums, the homeowners equally share in the ownership of these areas. For instance, each one is going to own an undivided one one-hundredth interest in the communal areas. In Planned Communities, on the other hand, the communal area is owned solely by the association. Some HOAs are not Planned Communities or Condos; nevertheless, these associations might still have assessment lien rights deriving from the HOA’s governing documents instead of from Arizona law.
Can my HOA Sell my Home?
Sad news, yes, they can. An assessment lien is a lien put upon an HOA member’s home that may be judicially foreclosed, which means the property might ultimately be sold to fulfill the HOA’s debt.
How Long is an Assessment Lien Valid?
Assessment liens are automatically deactivated if collection procedures are not brought inside of 3 years. An HOA could still sue a homeowner for up to 6 years of overdue assessments, which is the statute of limitations in Arizona for breach of contract scenarios. Nevertheless, the HOA is going to only have assessment lien rights for the prior 3 years of overdue assessments. When an HOA chooses to sue a homeowner for 6 years’ worth of overdue assessments, the association’s assessment lien rights are only legitimate for the prior 3 years.
How Can I Remove an Assessment Lien From my Property?
Homeowners have 2 overall options for removing an assessment lien. Firstly, the assessment lien, along with overdue late fees and collection charges associated with the assessment lien, has to be repaid in full. Secondly, a homeowner can challenge the validity of the assessment lien in court by bringing up any relevant defenses and/or bringing any appropriate counterclaims towards the HOA. Prior to choosing one of these alternatives, it is suggested that any homeowner with an assessment lien towards their property speak with an Arizona lawyer knowledgeable in these matters to completely assess the homeowners’ legal options. If the lien is inaccurate, a lawyer can usually mediate its removal or adjustment on your behalf.
Dar Liens Offers Lien Processing and Filing in Arizona
Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.
