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
Same as term government rectangular survey: Way in which the U.S. government uses to subdivide public land. Land is designated as either a base line (East-West) or principal meridian line ...
Street terminating at one end with only one outlet. A dead end street is not a through street. See also cul de sac. ...
Interior building trim surrounding windows, doors, and baseboards. Interior trim is both decorative and functional. It comes in several different styles and serves to finish the adjoining ...
Lien prior to another lien taking precedence over it. A senior lien may not necessarily be a first lien. ...
Doing business as, or DBA, means an official moniker for your enterprise or company. Regularly, a DBA is a state certificate serving as a registration name and issued under a ...
Dividing a lot into two or more parcels. Normally a variance would have to be obtained to permit a lot split. The lot cannot be split unless they meet minimum area zoning requirements ...
Early American architecture modeled after the English Georgian architecture having two or three stories with a rectangular design and ample ornamentation often including a widow's walk. ...
Request of a local government's planning body to alter the zoning requirements based on a justifiable reason. ...
Real estate, home and life insurance use numerous ambiguous terms you should know because you can significantly benefit from them. Let’s discover what the word boot usually applies to ...
Have a question or comment?
We're here to help.