The superior liens, usually a first priority mortgage or lien for ad valorem taxes, will remain on the property and become the responsibility of the new owner. This means the association has the right to obtain an order from the court allowing the association to foreclose on its lien without first paying off all superior liens. ![]() Judicial Foreclosure – The POA allows an association to judicially foreclose on its liens for assessments or other charges over $2,000. Therefore, if an association’s automatic statutory lien is not paid at closing, the association can proceed against the new owner, who will be personally liable for all amounts owed prior to the closing. Joint and Several Liability to Pay Assessments – The POA provides that, unless the declaration of covenants states otherwise, the buyer of a lot is jointly and severally liable with the seller for all unpaid assessments. Late Fees and Interest – Submission to the POA allows an association to charge a late fee of the greater of $10.00 or 10% of the amount due, and interest at a rate of 10% per annum on unpaid assessments and other charges. Without including this specific language in the association’s governing documents, some courts improperly reduce the attorneys’ fees awarded to the association, thereby leaving the association with a legal bill to pay.
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