In 2021, around 29% of homeowners lived in houses controlled by homeowners associations (HOAs). An HOA is an organization that manages a group of homes, and homeowners must abide by its rules.
One requirement of HOAs is a monthly payment. HOAs often call these monthly dues.
You must pay this fee monthly if you have an HOA. If you don't pay it, you could face an HOA lien, which has consequences.
Therefore, you must understand HOA liens if you live in a home with an HOA. Continue reading to learn more about these liens.
Basics of HOAs
An HOA property is part of a group of homes. The group hires a company to manage these homes, which includes collecting HOA dues. Each homeowner must pay these dues, which cover many things, including:
- Lawncare services
- Garbage pickup
- Exterior maintenance
- Long-term exterior repairs
The HOA management company needs the dues from every homeowner, as their budgets depend on it.
The management firm uses the funds to pay for the expenses the homes need. Additionally, they save part of the money for long-term services.
HOA management companies also handle other duties relating to the properties. For example, they enforce the rules listed in the HOA documents.
An HOA Lien Is a Claim
When a homeowner fails to pay the dues, the HOA management firm takes action. The actions are outlined in the HOA's documents and rules, and one step is a property lien.
An HOA lien is one type of property claim, but there are also others. In general, a property lien is a claim against a property.
A property lien gives someone else rights to the home. In this case, the HOA management company has the rights, as they're the party placing the lien on the property.
Restrictions With Liens
Having a lien on your home has consequences and restrictions. First, you can't sell a house with a property lien without satisfying the lien. This means that you must pay the lien if you sell your home.
Secondly, failing to pay the lien might result in an HOA foreclosure. The HOA management company has the right to foreclose if the HOA rules include this rule.
Ways to Settle the Lien
If you currently have a lien on your property, you can settle it in several ways.
First, pay the lien. If you pay the lien, the HOA management company must file for a release on the lien. The other option is to sell the property and pay the lien.
If you do not use one of these options, you risk losing the home to foreclosure.
Seek Help From an HOA Management Company
Having an HOA lien on your home can lead to problems. You can avoid these liens by paying your dues on time. However, liens can protect a group of homes by enforcing the rules among homeowners.
If you have questions about your HOA in Blanco, TX, contact us at Spring Branch Association Management. We offer HOA management services and can help your HOA thrive.
