Can an HOA Legally Put a Lien on Your House?

While HOAs offer benefits like shared amenities and curb appeal, they also enforce rules with serious consequences. An HOA lien is a legal claim your association can file against your property if you fail to pay dues, fines, or special assessments. Whether you live in a townhome in Raleigh, NC, or a gated community in Phoenix, AZ, falling behind can raise the question: can HOA put a lien on your house? In this guide, we’ll explain how HOA liens work, when they can be filed, and how to protect your property.

What is an HOA lien?

An HOA lien is a legal claim your homeowners association can place on your property when you don’t pay required fees or violate certain community rules. This usually happens when a homeowner falls behind on monthly dues, special assessments, or fines issued by the HOA. 

The authority to file a lien comes from the community’s governing documents — most commonly the Covenants, Conditions, and Restrictions (CC&Rs) and the HOA’s bylaws. These documents, which homeowners agree to upon purchasing the property, give the association the right to secure unpaid debts through legal means like liens and, in some cases, foreclosure. Once a lien is in place, it can affect your ability to sell or refinance your home until the issue is resolved.

Can HOA put a lien on your house?

Yes, in most cases, an HOA can legally place a lien on your home, and they often don’t need your permission to do it. When you purchase a property in a homeowners association, you agree to follow the terms outlined in the community’s governing documents. These typically include the right for the HOA to file a lien if you don’t pay dues or assessments as required. In some states, the lien is automatic as soon as a payment is missed; in others, the HOA must first file the lien with the county recorder’s office.

The specific process and legal requirements vary by state, but the power to enforce liens is broadly protected under state laws that recognize the HOA’s authority to collect unpaid obligations. Both the CC&Rs and state statutes dictate how and when an HOA may pursue a lien.

Keep in mind that HOA laws vary by state, so it’s important to understand the specific rules and protections that apply where you live.

The lien process usually starts with a missed payment or violation. From there, the HOA generally follows these steps:

How does the HOA lien filing process work?

1. Notification of delinquency: The HOA must notify the homeowner of the missed payment or violation. This notice usually outlines the amount due, deadlines, and potential consequences.

2. Opportunity to cure: Some states require a grace period to allow homeowners time to resolve the debt before a lien is filed.

3. Board approval (if required): Depending on the HOA’s bylaws, the board may need to formally approve lien action.

4. Filing the lien: If unresolved, the HOA files a lien with the county recorder’s office, making it a matter of public record.

5. Further notice: Some states require additional written notice after the lien is recorded, especially before any foreclosure action.

The CC&Rs and state laws work together to dictate each step of this process. In most states, the lien must include specific details such as the amount owed, the basis for the charge, the name of the property owner, and a legal description of the property. Some states also require the HOA to provide proof of proper notice or board authorization when filing the lien. Failing to follow proper procedures may invalidate the lien. 

What happens after a lien is filed?

Once a lien is filed, many homeowners wonder: Can an HOA put a lien on your house that affects your ability to refinance or sell? The answer is yes — until the lien is resolved, it often prevents a clean title transfer. It becomes part of your property’s public record — and the debt may continue growing as late fees, interest, legal costs, and collection charges are added.

Some states cap the amount of interest HOAs can charge on unpaid assessments and prohibit compound interest. For example, California’s Civil Code §5650 limits interest on delinquent assessments to 12% per year, while Florida Statute §720.3085 allows late fees up to $25 or 5% of the past-due amount, whichever is greater. 

Compound interest — where interest is charged not just on the principal but also on previously accrued interest — is prohibited in some states for HOA debts. This means HOAs can only charge simple interest on overdue balances. Improper compounding can be grounds to dispute the debt or reduce the total amount owed.

Check your state’s laws or CC&Rs to understand what rates and penalties apply — and whether your HOA is complying with those limits. Your HOA may also notify your mortgage lender, which can complicate refinancing or selling your home.

If left unresolved, the HOA can escalate the matter to foreclosure. Foreclosure laws vary by state and can proceed through either judicial (court-based) or non-judicial processes.

Are new owners responsible for unpaid HOA dues?

In many states, unpaid HOA assessments can become the responsibility of the new homeowner, even if the debt was incurred by the previous owner. This is because the lien “runs with the land,” meaning it stays attached to the property regardless of ownership. Before buying a home in an HOA, it’s crucial to request a payoff statement or estoppel certificate from the HOA to ensure there are no outstanding debts that could transfer to you. Some states offer limited protections for buyers, but not all — so due diligence is essential.

State lien laws at a glance

*Note: Laws vary widely by state and HOA type. Always refer to your state’s statutes and HOA governing documents for the most accurate information about if HOA can put a lien on your house.

How HOA liens affect your credit and finances

An HOA lien doesn’t just sit quietly on your home’s title. Because liens are public record, they may be picked up by credit reporting agencies, potentially lowering your credit score and damaging your ability to obtain new loans or credit. A lower credit score can affect everything from mortgage rates to auto loans to rental applications.

Selling or refinancing your home can also become more difficult. Most lenders require any outstanding liens to be cleared before closing. Even if you find a buyer, the lien must be paid off or otherwise resolved before the sale can proceed.

Beyond financial obstacles, unpaid HOA liens can create stress, strain relationships with neighbors or the HOA board, and lead to additional penalties like wage garnishment or court judgments if legal action escalates.

Legal fees can also grow quickly. Many HOAs pass collection costs, attorney fees, and court expenses directly onto the homeowner, significantly increasing the total amount owed.

Can an HOA foreclose on your property?

In some states, yes — an HOA can foreclose on your home to collect unpaid dues. This power is controversial but legal in many parts of the country. Depending on where you live, the HOA may be allowed to foreclose through either a judicial process (going through the court system) or a non-judicial process (without court involvement).

For example, in California, the HOA generally cannot foreclose unless the delinquency exceeds $1,800 or is more than 12 months overdue. In Texas, on the other hand, the rules are less restrictive, and foreclosure can happen more quickly. Either way, once foreclosure begins, you risk losing your home over what may have started as a few missed payments.

What to do if you’re facing an HOA lien

If you’ve received notice of an HOA lien, don’t ignore it. Taking quick action can help prevent the issue from escalating into foreclosure. Follow these steps to protect your home and resolve the situation:

• Review your CC&Rs and state law. Confirm the amount owed and whether the lien has been properly filed. Look for any errors or outdated records that may affect the validity of the claim.
• Contact your HOA early. Reach out as soon as possible to discuss your options. Prompt communication shows good faith and may stop the issue from progressing further.
• Request a payment plan or hardship consideration. Many HOAs are open to flexible solutions, especially if you’re upfront about financial difficulties. Ask about installment options or temporary relief.
• Explore financial solutions and consider ways to cover the debt before it grows.
  • Personal loan
  • Home equity line of credit (HELOC)
  • Home equity investment
  • Borrowing from family or selling valuables
• Know when to contact a real estate attorney. If you’re unable to resolve the dispute or if you’re unsure whether the lien is valid, consult an attorney experienced in HOA or property law in your state. Legal advice now could prevent much larger costs later.

Can HOA collect rent from a tenant?

In certain jurisdictions, if a homeowner becomes delinquent on dues, the HOA may have the legal right to demand rent directly from tenants occupying the property. This is often outlined in the governing documents and supported by state statutes. If a tenant complies, they typically receive credit toward their rent obligation, and the funds go toward the owner’s HOA debt. This enforcement method can add another layer of urgency for landlords in HOA communities.

How to avoid HOA liens in the first place

The best way to avoid an HOA lien is to stay current on dues and stay informed about rule changes. Set up automatic payments, monitor special assessments, and review your CC&Rs periodically to ensure you remain in good standing.

Attending HOA meetings can also help you stay informed and involved in how the community is managed. If you’re concerned about how your HOA handles finances or rule enforcement, consider joining the board to help promote transparency. Understanding your HOA’s rules can help you avoid costly issues — and prevent situations where you’re asking can an HOA put a lien on your house?

Your rights as a homeowner

Homeowners facing an HOA lien still have legal rights. In many states, you have the right to receive written notice, dispute the lien, and seek a hearing or mediation before foreclosure can move forward. Deadlines to contest a lien vary by state and can range from 15 to 60 days after notice is received. Missing these deadlines may limit your ability to challenge the lien or delay foreclosure. Always review your notice carefully and act promptly if you believe the lien is invalid or excessive.

Some states also place limits on how and when a lien can be enforced, offering extra protection for homeowners with small debts or financial hardships.

If you can’t afford legal help, consider contacting a HUD-certified housing counselor or local legal aid office. Depending on your situation, these organizations can help you understand your options and may even provide free representation. You can search for help through state legal aid networks, local bar associations, or nonprofit housing organizations. HUD-approved housing counselors can also offer guidance, especially if you’re navigating financial hardship or facing possible foreclosure.