How to file a lien for non payment of HOA dues in Texas

Hello, I am the President of a small community outside of Houston consisting of 53 homes. We have just taken over the HOA board from the developer. I am not sure how to file a lien on homes that have not paid their annual dues. They were due by January 1st and have been sent two certified letters. Trying to find advice on how to file the liens now.

Troy, I responded too quickly.

When you talk with an attorney you will find your association has to establish and follow a documented collections process. If your association is new, it is unlikely you have one in place. It is not enough to send two certified letters, your collections process has to describe explicitly when the assessment is past due (15 days? 5 days? or whatever), when it becomes delinquent (same thing with dates), when a demand letter will be sent (dates again), when the account will be referred to an attorney for collections (more dates), and what can/will happen if the assessment is not paid. On every collections or past due document you send you must offer the delinquent accountholder a payment plan. Your declaration may have language regarding assessments, past due assessments, and collections. Your collections process must follow what is described in the declaration.

I would locate an attorney who specializes in HOA and condominium law as I mentioned in my previous post. I expect you will incur legal fees of at least $500-$800 to establish the collections process, which cannot be recouped. It is a cost of doing business to the Association.

The lien filing and related expenses will cost @ $400 more per delinquent account. Fortunately, all costs of collection can be added to the past due accounts, but the association will have to pay all the costs up front.

Keep very detailed documentation as to the steps you take, if you do not your attorney will likely have you restart the collections process all over before he or she will file a lien. Also keep very detailed records of the expenses you incur: postage, clerical time, mileage, time standing in line in the post office, etc.

It does not sound like you have a management company. I strongly recommend you engage one. This and other HOA processes in Texas can be complicated and costly if you do not follow the requirements of your governing documents, the Texas Property Code, and the recommendations of an attorney who specializes in HOA and condominium law.

Can you quote the statute that says only an attorney can file a lien? We file our liens without going through an attorney. I would recommend talking to an attorney the first time so you make sure you are doing it properly.

Ben, I was told that by the attorney for an HOA in which we resided about 15 years ago. I had no reason to question it. I have done a bit of research on line and cannot find a citation. I was a Director of the HOA, we were discussing collections processes in general, and we did not even have a delinquent account at the time. I also skimmed Texas Homeowners Association Law, 3rd Edition, by Gregory S. Cagle. While I found no references to who can and cannot file a Lien, reading through the Judicial and Non-Judicial foreclosure process requirements I found the use of an attorney would probably be mandatory to work through a foreclosure.

Within a few years the HOA did have members with significantly delinquent accounts and liens were filed. While I do not have all the costs, looking at old records the member accounts were charged over $400 as shown below:

Management Company Expenses
4 certified letters @ $25.00 each (includes postage, supplies, mileage to the post office, standing in line, etc.) The certified letters are required by the Association's process for collecting past due accounts.
4 first class mail letters @ $2.00 each
Preparation of collection package for referral to attorney $85.00.

Attorney Charges
30 Day Letter $125.00
Notice of Lien $235.00
Filing Fees ??
Other expenses such as for certified mail expenses billed at cost.

I think you in Texas are screwed when having to deal with liens. Almost as bad as Florida in that you can't blink without using an attorney.

Having done them in California for 9 years, I can tell you it is a relatively easy process as long as you follow proper protocol. The problem is you will have to pay upfront for their services and hope that the owner pays in the end.

That opinion is one of those "don't break my rice bowl" opinions. A lien can be filed by anyone, and a board member represents the association. Liens are filed on behalf of the board and the association.

Oh yeah, it's a blast. I think there are more court cases and subsequent updates to HOAs than condo regimes. Of course there are notable differences between single family homes and condo complexes, so it isn't odd to me there are different property codes in general, but some differences don't make any sense at all.

To clarify, all chapter 81 condo regimes fall under the following sections of chapter 82, whether the elect to or not:

"Sections 82.005, 82.006, 82.007, 82.053, 82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113, 82.114, 82.116, 82.157, and 82.161. The definitions prescribed by Section 82.003 apply to a condominium in this state for which the declaration was recorded before January 1, 1994, to the extent the definitions do not conflict with the declaration."

I have this as a 'sticky' for when I need to review something for our COA.