What Is an HOA Lien? Its Implications for Suwanee, GA Homeowners

What Is an HOA Lien? Its Implications for Suwanee, GA Homeowners

Over 2 million residents enjoy the benefits of living in an HOA community in Georgia. Together, these people pay over $4 billion annually to maintain these communities and enjoy an array of appealing shared amenities.

They must also comply with the community association rules to ensure everyone benefits equally from the HOA's facilities. Homeowners who don't obey the rules can be fined.

Unpaid fines and HOA fees can lead to an HOA lien being placed against the homeowner's property.

The HOA Lien Process in Georgia?

To maintain the high property values and appeal associated with HOAs, the HOA board compiles a budget for managing all the expenses associated with the community. Each homeowner must contribute equally to these costs.

Non-payment of HOA fees spells disaster for the community. Not abiding by the rules can seriously hamper the community's image and impact property values.

In this light, the HOA board has a lot of power when it comes to collecting past-due fees and enforcing the rules. In terms of the Consumer Protection Act, the board can use the following tactics to remind homeowners of their obligations:

  • Adding late fees to past-due accounts
  • Calling the HOA homeowner to request payment
  • Sending a letter of demand regarding past-due fees

If these methods fail, the HOA can proceed with recording a lien against the homeowner's property. Georgia law protects homeowner rights by implementing strict conditions for imposing a lien on their property.

The HOA board must notify the homeowner of their intentions in writing. They must provide a detailed statement of the amounts owed within five days of the owner requesting it.

If the HOA board does not meet this deadline, the lien is automatically extinguished.

Avoiding HOA Liens

An HOA lien clouds the property's title and can lead to the HOA foreclosing on the home unless the homeowner pays the amounts owing. In Georgia, this is a non-judicial procedure, which is faster than the alternative.

Importantly, an HOA Board can foreclose on a homeowner's property, even if their mortgage payments are up-to-date.

At the foreclosure sale, the HOA receives the amount owed to them only after the balance of the mortgage payment is settled. So, it's not in the HOA board's best interest to proceed with an HOA lien.

To avoid HOA liens, the HOA board should ensure clear-cut communication regarding HOA laws, precise record-keeping, and regular reminders to homeowners about past-due fees.

Ensure Smooth Operations at Your Suwanee HOA

In Georgia, an HOA board has the power to impose an HOA lien on homeowners who don't pay their HOA fees and fines. This can ultimately lead to an HOA foreclosure for the offending homeowner.

To avoid the unpleasantness and legal hassles that can follow an HOA lien, it's in the HOA board's best interest to hire a property management company to oversee their community.

PMI Reliance is committed to ensuring efficient fee collection and impartial rule enforcement. We can assist your HOA board with record-keeping, maintenance of amenities, and legal guidance when needed.

Discover the best way to ensure your Suwanee HOA operates efficiently, harmoniously, and cost-effectively.