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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>I can try to help. First, you have to look at all of the governing documents, not just the Bylaws, for the right to lien. That means, plat maps, covenants, Articles, other recorded documents, the original deed out from the developer, and anything else. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Then you have to apply Wilkinson v. Chiwawa Communities. Do the recorded documents not say anything at all about liens? If so, then maybe they cannot have a lien provision grafted onto them, under the Wilkinson rule that if your documents say they can be amended, that doesn't include adding new features, unless it specifically says they can be added to. If they do say something about liens, then what do they say? Do they say they can lien? Can lien and are prior? Can lien but lender loans are prior? You have to figure out what they do say.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Then, if the recorded documents talk about liens somewhere but don't talk about priority, can the association adopt a priority position? Is that related in the way it needs to be related under Wilkinson? And if so, how? Rule? Covenant amendment?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>The one thing that doesn't matter, based on recent case law, including Wilkinson, is the actual statute that provides for association powers, 64.38.020. Yes, under that statute, and especially (13) and (14), an HOA can do pretty much anything, but that is subject to the general limitation at the beginning of the statute, "Unless otherwise provided in the governing documents." Wilkinson never comes close to discussing this statute; even though Wilkinson is all about the powers of the association, the only possible way the statutory powers section can be reconciled with that case is by reading Wilkinson to say, when the governing documents are what they were in that case (silent on the question), then they provide otherwise. Which is like trying to tap dance while standing on your head. The relationship between that statute and case law is quite remote.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>For insight into the frustrations that follow Wilkinson, just read the majority and the lead minority opinions. They are insulting to each other in the extreme. Something else was going on beyond the pure issues of law, methinks. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>So, to answer your question, maybe. Who knows? If the association can impose the lien, and there is no lender priority, then the lien survives foreclosure sale. Check out Lake Limerick v. Hunt, 120 Wash. App. 246 (2004). <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Rob<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><p class=MsoNormal style='text-autospace:none'><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Robert D. Wilson-Hoss <br>Hoss & Wilson-Hoss, LLP <br>236 West Birch Street <br>Shelton, WA 98584 <br>360 426-2999<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><a href="www.hossandwilsonhoss.com"><span style='color:blue'>www.hossandwilson-hoss.com</span></a><br><a href="mailto:rob@hctc.com"><span style='color:blue'>rob@hctc.com</span></a></span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><i><span style='font-family:"Times New Roman","serif"'>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Times New Roman","serif";text-transform:uppercase'>This office does debt collection and this e-mail may be an attempt to collect a debt, Any information obtained will be used for that purpose. </span></b><span style='font-size:10.0pt;font-family:"Times New Roman","serif"'>To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.</span><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Paul Neumiller<br><b>Sent:</b> Tuesday, April 03, 2018 3:27 PM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] HOA inherent powers?<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Richard, I can address the second part of your question. A lender accepting a DIL is not an innocent party/purchaser. While a foreclosure action will relate back to the date the deed of trust was recorded and therefore wipe out all junior liens and obligations, a DIL is treated as a current sale of the property for the price of the forgiveness of the loan. This means that the lender takes the property subject to the liens of record. For example, before my clients accept a DIL from a defaulting debtor, we always pull a Trustee Sale Guaranty (“TSG”) to see what is recorded against the property. If there are many and expensive junior liens, my client will continue with the foreclosure procedure in order to wipe out the junior liens. But if there are no junior liens or just a few for only a couple thousand dollars, my client may make the decision to abandon the foreclosure procedure, accept a DIL and then just pay off the junior liens and get early possession of the property. If lender pulled a TSG, the lender should have seen that the property was subject to CC&Rs and should have contacted the HOA to see if the debtor was current in the payment of assessments and dues.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="Paul_A__Neumiller"><img border=0 width=250 height=150 id="_x0000_i1025" src="cid:image002.jpg@01D3CB63.8A8CA3F0"></a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Times New Roman","serif"'> <o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>> <b>On Behalf Of </b>Richard Holland<br><b>Sent:</b> Tuesday, April 3, 2018 10:53 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> [WSBARP] HOA inherent powers?<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Property owned by A with a DOT to Lender. HOA for the property. Lender forecloses and takes title by DIL. HOA months later liens the property for unpaid dues by A. Review of HOA Bylaws etc. does not specifically mention the power to lien the property for unpaid dues just the catchall ‘any remedy at law or in equity’. RCW 64.38 does not explicitly grant the power to lien but there are the ‘catchall clauses’: <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>(13) Exercise all other powers that may be exercised in this state by the same type of corporation as the association; and<o:p></o:p></p><p class=MsoNormal>(14) Exercise any other powers necessary and proper for the governance and operation of the association.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So two major issues, to me: 1) Can an HOA just inherently lien a property for unpaid dues when nothing expressly in the Bylaws gives them that power? 2) How can an HOA lien a property no longer owned by A for A’s debt? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I understand that the Bylaws run with the land but, for example, if A had <i>sold</i> to B (assume GFPV), I don’t see how in the world the HOA could do this to an innocent B.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Am I missing something obvious?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sincerely,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Richard L. Holland<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><img border=0 width=175 height=78 id="Picture_x0020_3" src="cid:image003.jpg@01D3CB63.8A8CA3F0" alt=logo-for-print.jpg><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.0pt'>603 4th Avenue, Suite 100 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>Kirkland, WA 98033 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>877.785.8734 / 866.982.5080 (fax)<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b>BE AWARE! 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