Unpaid condo dues are more than an accounting headache for condominium and HOA associations. When assessments go unpaid, the shortfall affects maintenance, reserves, insurance, and sometimes even basic services. The law gives associations specific tools to collect delinquent dues, but those tools must be used in the correct order. Continue reading and reach out to the seasoned Florida condo & homeowner association attorneys at Ansbacher Law to learn more about the legal steps for collecting unpaid condo dues. Here are some of the questions you may have:
What happens when a condo owner stops paying their dues?
When a unit owner falls behind, the process usually begins well before lawyers or court filings are involved. Florida law and most governing documents require notice and an opportunity to cure before stronger measures are taken. Some of the most important steps to take early on are as follows:
- Sending written notices that clearly identify the amount owed, including assessments, late fees, interest, and any administrative charges allowed by the governing documents.
- Providing a statutory demand letter, often required before a lien can be recorded, that gives the owner a set period to pay.
- Reviewing the association’s declaration and bylaws to confirm what fees and remedies are permitted.
At this stage, many delinquencies are resolved without escalation. Some owners simply need a reminder, while others may request a payment plan. Associations that document every notice and communication are better positioned if the matter later becomes contested.
How does a condo association place and enforce a lien for unpaid dues?
If the account remains unpaid, condominium associations can record a lien against the unit. This lien is powerful, but it must strictly comply with statutory requirements. Some of the most important steps often include the following:
- Recording a claim of lien in the county where the property is located, specifying the amount owed and the relevant time period.
- Sending proper notice of the recorded lien to the unit owner within the timeframe required by law.
- Observing statutory deadlines for enforcing the lien, since failure to act within those deadlines can result in losing lien rights.
Once a lien is recorded, it attaches to the property itself, not just the owner personally. This means the lien can affect refinancing or sale of the unit, which often motivates payment. However, associations must ensure accuracy, since improperly recorded liens can be invalidated.
When can a condo association pursue foreclosure or other legal action?
If liens and demands do not lead to payment, foreclosure may become an option. Condo lien foreclosure is similar in many ways to mortgage foreclosure, though the process has its own rules and limitations. Some possible enforcement options are as follows:
- Filing a lawsuit to foreclose the lien and potentially force a sale of the unit.
- Seeking a money judgment for unpaid assessments if permitted by the governing documents.
- Coordinating lien enforcement with any existing mortgage, since priority issues can affect recovery.
Foreclosure is not always the fastest or most cost-effective option, but it can be necessary for chronic delinquencies or high balances. Associations must also weigh practical considerations, such as whether the unit is occupied, rented, or already subject to lender foreclosure.
If you have further questions about this or need a competent attorney in your corner, please don’t hesitate to contact Ansbacher Law for an initial consultation.