New Home Owner's Association Laws

This is important information for anyone who owns real estate that is governed by deed restrictions and/or covenants and restrictions.

As of July 1 2007, during the Legislative Session, amendments were passed that changed the procedures that Home Owner's Associations must follow when collecting delinquent assessments. These changes are to the benefit of the home owners.

The new law states that before a claim of lien can be filed against a parcel owner for unpaid assessments, the real estate owner must be given written notice of the past due assessments, plus, the HOA must give another 45 day notice of it's intention of foreclosure before they can file a foreclosure lawsuit.

There is additional language in this act that says a parcel owner is liable for all unpaid assessments that came due, up until the closing, along with the previous owner.

More language of this act says that payments made will be applied

1. to any interest accrued
   
2. to any late fees
   
3. to any any reasonable attorney's fees
4. to the delinquent assessment

However, the Lender's Lobby is planning to appeal this amendment because of one more bit of verbiage. Mortgagees are also now liable to pay HOA's for all unpaid assessments due at the time of the title transfer.

This is good news for owner's of real estate in HOA governed communities, if they need additional time to get caught up on any unpaid assessments. It will be interesting to see if this amendment stands, once the Lender's Lobby makes their appeal.

.