Can my HOA place a lien or foreclosure on my home for unpaid dues?

In North Carolina, an HOA or COA is entitled to a lien for unpaid assessments and related charges once the amount due is 30 days late. The lien becomes effective when the HOA or COA files a claim of lien with the clerk of the superior court in the county where the property is located (N.C. Gen. Stat. § 47F-3-116(a), § 47C-3-116(a)).

State law and the HOA or COA’s governing documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws, will often set out the type of charges that may be included in the lien. In North Carolina, an HOA or COA is permitted to include the following in its lien (unless the governing documents provide otherwise):

  • Past-due assessments
  • Late charges (not to exceed the greater of $20 per month or 10% of any unpaid assessment) (N.C. Gen. Stat. § 47F-3-102(11), § 47C-3-102 (11))
  • Fines for violations of the CC&Rs
  • Interest on past-due common expense assessments (not to exceed 18% per year) (N.C. Gen. Stat. § 47F-3-115(b), § 47C-3-115(b)), and
  • Other charges (such as those connected with the preparation and recordation of documents, including amendments to the declaration or statements of unpaid assessments). (N.C. Gen. Stat. § 47F-3-116(a), § 47C-3-116(a))
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