Current Bills and Debts
We are not attorneys and are expressing our experienced
opinions within these answers.
If you are concerned, please contact an attorney for clarification.
On deeded properties mortgages, maintenance fees, taxes, mechanic’s liens, utilities, and ownership services are considered encumbrances or charges upon or claims against land arising out of private grant or a contract. They are sometimes called “Due Bills”.
For any real estate, including deeded timeshares, the vast majority are governed by an owners’ association on the same basis as condominium Home Owners Associations (HOAs).
Virtually everywhere, HOAs are authorized under state law and the terms of the complex or subdivision’s covenants, conditions and restrictions (CC&Rs) to place a lien on the property once your dues fall delinquent by a certain amount (usually a certain time period, like 90 days behind).
However, this lien is placed against the home itself, not your personal property, salary or bank account.
In most cases, when due bills are made, the date on the bill is considered against the deed recording date. Here’s where confusion occurs. Whoever is on the deed at the time the due bill is created is personally responsible along with the property itself. That means you are on the hook for the HOA’s unpaid assessments, including interest, attorney fees and other costs of collection that will continue to grow until the bill is paid. The good news is that the moment the deed is recorded out of your name, you stop being liable for any new assessments or dues.