HOA glossaryAssessments & accounting

What is a lien?

A recorded claim against a lot securing unpaid assessments, which must generally be satisfied before the property can be sold clear.

Also called: Assessment lien, Claim of lien

In most common interest communities the declaration creates a lien for unpaid assessments automatically, and recording a claim of lien perfects and publicises it. Once recorded, it appears in a title search and becomes something a closing has to deal with.

Priority — whether the association's lien sits ahead of or behind a first mortgage, and to what extent — is set by state law and varies enormously. Some states grant a limited priority for a defined period of assessments; others do not.

The procedure before recording is where associations get into difficulty: the notice that must precede it, who may sign, what may be included in the amount claimed, and the deadline to act. Those all come from the state act and the documents, and a defective lien can be more expensive than no lien.

Why it matters to a board

Have counsel or the manager prepare liens under a standing policy. It is a recorded legal instrument against someone's home, not an accounting entry.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Find your state's lien rules

Related terms

DelinquencyAn assessment that has gone unpaid past its due date, starting the clock on the association's collection process.Collection policyThe board-adopted procedure setting out how unpaid assessments are pursued, at what intervals, and with what charges.ForeclosureThe legal process by which an association enforces its assessment lien against a lot, and the most serious remedy available to a board.Estoppel certificateA statement from the association, relied on at closing, certifying what a lot owes and whether it is in violation.AssessmentThe recurring charge levied against each lot to fund the association's budget, and the primary obligation of membership.FineA monetary penalty levied against an owner for a covenant or rule violation, available only where the documents and state law authorise it.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
HOA chart of accounts Limited common element All 65 terms

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