Understanding HOA Liens
In Florida, Homeowners' Associations (HOAs) and Condominium Associations have the statutory right to place a lien on a property for unpaid assessments. This lien secures the debt and clouds the title, which must be resolved to transfer clear title to a buyer.
Authoritative Sources:
HOA Foreclosure Risk
If HOA fees remain unpaid, the association can foreclose on the lien. This is a distinct process from mortgage foreclosure and can happen even if the primary mortgage is current.
Selling with a Lien
To sell a property with an HOA lien, the outstanding balance—including legal fees, interest, and late charges—must be satisfied, typically at closing out of the sale proceeds.
[NEEDS CONTENT FROM MIKE: Explain how title companies handle HOA estoppel letters during your cash closing process, and confirm that you can purchase properties with active liens.]