If you own property in a homeowners association (HOA) community in Florida, it’s important to understand how HOA liens work. Many residents are surprised to learn just how much power an HOA has when it comes to enforcing unpaid dues. What might start as a few missed payments can quickly escalate into a legal claim that affects your property rights. Whether you’re behind on assessments or simply want to stay informed, knowing the risks of an HOA lien can help you avoid serious consequences.
What an HOA Lien Means for Your Property
When a homeowner fails to pay mandatory dues, the HOA can place a lien against the property. This lien acts as a legal claim for the unpaid balance. It attaches to the home, not the individual, meaning it stays with the property even if ownership changes. Under Florida law, once the lien is filed, it becomes a cloud on the property’s title. This can interfere with refinancing, selling, or transferring ownership.
Florida Statute 720.3085 outlines the process. If assessments are overdue for more than 45 days, the HOA may record a claim of lien. Before that happens, the homeowner must receive a written notice of intent to file a lien, giving them a 45-day window to pay the outstanding amount.
How a Lien Can Lead to Foreclosure
In Florida, HOA liens carry significant weight. Once recorded, the lien can be enforced through foreclosure. This surprises many homeowners, as foreclosure is typically associated with missed mortgage payments. However, HOAs in Florida can foreclose on a property in much the same way a lender can.
Even a relatively small unpaid balance can lead to foreclosure. For instance, if legal fees and interest accumulate, what started as a few hundred dollars can grow into a much larger debt. Once the lien is foreclosed, the property may be sold at auction, and the homeowner can lose their home entirely.
Priority of Liens in Florida
One important detail in these cases is lien priority. Generally, mortgage lenders hold the first lien position, while HOAs come second. This means if the property is foreclosed by the HOA, the mortgage lien remains in place. A buyer at auction would typically still need to address the mortgage.
However, there are situations where the HOA may still collect a portion of the proceeds, especially if the mortgage lender doesn’t act quickly. It’s also worth noting that even after a foreclosure, the original owner may be responsible for any remaining debt not covered by the sale.
HOA Lien Notices and Homeowner Rights
Florida law provides specific protections for homeowners facing liens. Before an HOA can file a lien, they must send a formal notice of intent. This gives the homeowner a limited time to resolve the issue. If a lien is recorded, another notice must be sent before the HOA can move forward with foreclosure. This second notice must give at least 45 days’ warning.
These timeframes provide a critical opportunity to catch up on dues, dispute charges, or seek legal advice. Ignoring these notices can result in losing your home, so it’s important to act quickly and not delay a response.
Disputing a Lien or Foreclosure Action
If you believe the lien is incorrect or the HOA didn’t follow proper legal procedures, you have the right to challenge it. Florida courts take these disputes seriously. Common defenses include improper notice, incorrect amounts, or violations of the HOA’s own rules.
A qualified real estate attorney can review the case and identify possible errors in the lien process. It may be possible to settle the debt or negotiate a payment plan that avoids foreclosure altogether. In some cases, a quiet title action may be necessary to clear an invalid lien from the property record.
How to Prevent an HOA Lien
The best way to avoid an HOA lien is to stay current on all assessments and fees. If you run into financial difficulty, contact the HOA as soon as possible. Some associations offer payment arrangements or hardship relief programs. Open communication can make a difference and show good faith on your part.
If you don’t agree with a fee or special assessment, raise the issue in writing and request clarification. Keep records of all correspondence and payments, especially if there is a dispute later. Having clear documentation helps protect your rights and shows a consistent effort to resolve problems.
Buying a Home with an Existing Lien
If you’re purchasing a property in an HOA community, it’s important to do a full title search. Liens recorded by the HOA will appear in public records. While sellers are typically responsible for resolving these before closing, buyers should confirm that all dues are paid and the lien is released.
Purchasing a home with an outstanding lien can lead to unexpected costs or delays. In some cases, the buyer may become responsible for paying off part of the HOA debt. Always work with a knowledgeable real estate attorney to ensure clean title transfer.
The Role of a Real Estate Attorney
When dealing with HOA liens, having experienced legal guidance is essential. A real estate attorney can help homeowners understand their rights, negotiate with the HOA, or challenge improper lien filings. If foreclosure is threatened, legal intervention may help delay or stop the process.
Attorneys can also assist in reviewing HOA documents before purchasing a property. This step can reveal potential financial risks and help avoid surprises after closing. Knowing what your HOA can and cannot do is a key part of making informed real estate decisions in Florida.
Conclusion
HOA liens are not just paperwork. They represent a serious legal claim that can lead to foreclosure and the loss of your home. In Florida, HOAs have broad authority to enforce dues and assessments, but homeowners still have legal protections.
Understanding how the lien process works—and what your options are—can help you stay ahead of problems. If you receive notice of a lien or are facing legal action from your HOA, don’t wait to take action. Seek professional advice and explore all available remedies. Being proactive is the best defense when your home is on the line.