[WSBARP] HOA lien perfection?

[Darrin Class]

I record liens to ensure that Title picks it up, but generally, Title will send a query to the HOA asking for account status as part of escrow.



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PO Box 173
Ridgefield WA 98642

Washington 360-953-4148/Oregon 503-208-5789
darrin at rdclasslegal.com<mailto:darrin at rdclasslegal.com>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Patrick M. McDonald
Sent: Thursday, January 28, 2016 1:57 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] HOA lien perfection?

Whether the lien is automatically perfected depends on whether you are talking about a homeowners association or a condominium association. Condo associations' liens automatically arise and are perfected when an assessment goes unpaid under the Condo Act regardless of whether the lien is recorded. For homeowner associations, it depends on the covenants. There is no statutory lien.

It's generally a good idea to record a lien with the county auditor to make sure the lien shows up in a title report when an owner refinances or sells or in a trustee's sale guarantee when a lender forecloses.

Patrick McDonald

Sent from my iPhone

On Jan 28, 2016, at 3:26 PM, Paul Neumiller <pneumiller at hotmail.com<mailto:pneumiller at hotmail.com>> wrote:
Because, sometimes, the delinquent unit owner actually pays the back dues when faced with a collection letter from the COA’s attorney stating that unless the back payments are made, the COA will record a lien against the delinquent owner’s unit and possibly go to a foreclosure sale.  The threat seems to make it more “real” to the delinquent owner.  And, the COA adds to the payoff demand the costs of the attorney’s collection letter, preparing the lien, recording the lien, and recording a satisfaction of lien.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Doug Schafer
Sent: Thursday, January 28, 2016 12:54 PM
To: Robert Dunphy <rdunph at gmail.com<mailto:rdunph at gmail.com>>; WSBA RPPT Real Prop. Discussion Forum <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] HOA lien perfection?

I'm also interested in this question, since I recently began representing a small condo association with rampant disputes among members. From the statute, it appears that the recorded declaration of condominium sufficiently gives notice to title companies of the possibility of a statutory lien for unpaid assessments.  So I am wondering why any COA should ever incur the expense of preparing and recording a Notice of Lien for unpaid assessments.  The county does not record a notice of lien for unpaid property taxes.  The COA can foreclose its statutory lien without having ever having recorded a Notice of Lien, so why record one?

I am cross-posting this to the RPPT-RealProp listserv, and I will cross-post any responses from that listserv to the solo & small practice section listserv.

Doug Schafer, in Tacoma.
On 1/28/2016 10:49 AM, Robert Dunphy wrote:
Listmates,

I live in an HOA where the declaration has been recorded and grants priority liens for unpaid dues.  Per the RCWs, I believe this is enough to perfect any liens for unpaid dues?  However, no HOA lien shows up on title searches because nothing has been recorded since the original declaration.

Does the HOA need to do anything else to claim the lien on the property?  Or how do we make sure the lien shows up on title searches to make sure we are paid?
Thanks!
-Robert D

You are currently subscribed to solo-and-small-practice-section as: schafer at pobox.com<mailto:schafer at pobox.com>.

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