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StephanieH5 (Indiana)
Posts: 22
Posted:
I was told by our new management company that if I file a lien for late dues, the lien will only last for the year it was filed. If a lawyer files the lien, it lasts for 6 years. I have never heard this before. Does anyone know any information on this topic?
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By StephanieH5 on 06/11/2014 6:33 AM
I was told by our new management company that if I file a lien for late dues, the lien will only last for the year it was filed. If a lawyer files the lien, it lasts for 6 years. I have never heard this before. Does anyone know any information on this topic?

I rarely accept anything anyone tells me without verifying the information using other sources. All too often what someone tells you is belief - not fact.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is a bit more complicated than that. It depends on each state or county. Some require a lawyer to file liens. Some do not. Since we are a corporation a lawyer is the preferred method of representation in court. We could have a board member appointed but who in their right mind want an unlicensed non practicing lawyer representing your entire HOA in court? Even though I could do it and did once, no way would I recommend a board take on that responsibility.

Here is also the fault in your statement... Liens can be filed for non paid dues and late fees ADDED to that amount plus interest. However, straight late fees are not subject to liens. They are more like fines which are typically not allowed to be basis of liens.

So my take on your MCs answer is that the actions your board may take is limited due to the nature of the money owed. That may be a small claims action at best. A lawyer filings may mean a different court system level or other higher action.

So yes always do more research before taking your MCs advice. They are not legal experts. They are just theones who write the checks to them...

Former HOA President
RichardP13 (California)
Posts: 1,767
Posted:
Indiana HB Bill 1071 increases the time length of a lien from one year to fives. It does not have to filed by an attorney. According to Indiana statues, "all sums" can be included in the lien.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By StephanieH5 on 06/11/2014 6:33 AM
I was told by our new management company that if I file a lien for late dues, the lien will only last for the year it was filed. If a lawyer files the lien, it lasts for 6 years. I have never heard this before. Does anyone know any information on this topic?

It may be a question of semantics. People tend to confuse the terms "file" with "record" and "lien" with "lawsuit."

If by "file a lien" you mean record a lien at whatever office records documents, then it should not matter who prepares the papers nor should it matter who delivers it to the official for recording. A lien is simply an unproven allegation that one person owes another money. Just what does the management company think will happen at the end of the year? Do they think the recorder will purge the records of all liens not filed by attorneys? (Actually, that could happen but is highly unlikely unless there is a statute about recording liens.)

If "file a lien" means filing a lawsuit to collect via civil action in court, then you need to do some investigating. It may be that by filing a lawsuit pro per that you have only one year in which to commence prosecution while an attorney may have a longer time to act.

Regardless, I would go back to the management company and ask for their source of information and then verify it by looking up the appropriate statutes or rules of court.

PitA1
Posts: 222
Posted:
a lien for unpaid assessments EXISTS as per the CCRs automatically (99%)

a lien may be actually RECORDED to make it publicly available which will prevent/delay a sale until satisfaction - either by payment or removal (100%)

an UNRECORDED lien may, or may not, be applicable against a new owner

a RECORDED lien will DEFINATELY 'cloud the title' and virtually ensure payment (unless superseded by a superior mortgage)
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By StephanieH5 on 06/11/2014 6:33 AM
I was told by our new management company that if I file a lien for late dues, the lien will only last for the year it was filed. If a lawyer files the lien, it lasts for 6 years. I have never heard this before. Does anyone know any information on this topic?

I would ask the MC to please direct you to the applicable statute.

RichardP13 (California)
Posts: 1,767
Posted:
Quote:
Posted By PitA1 on 06/11/2014 8:52 AM
a lien for unpaid assessments EXISTS as per the CCRs automatically (99%)

a lien may be actually RECORDED to make it publicly available which will prevent/delay a sale until satisfaction - either by payment or removal (100%)

an UNRECORDED lien may, or may not, be applicable against a new owner

a RECORDED lien will DEFINATELY 'cloud the title' and virtually ensure payment (unless superseded by a superior mortgage)

In Indiana, prior to HB 1071, a lien expired after one year, making it virtually worthless. Associations should check for themselves their state statues to protect themselves.

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