Filing Liens the Right Way: Due Process Checklist

A lien is one of the most powerful tools an HOA has to collect delinquent assessments — but it's also one of the most legally sensitive. A lien filed improperly can be unenforceable, or worse, expose the association to a counterclaim.

Step 1: Verify the Delinquency

Confirm the exact amount owed, including principal, late fees, interest, and any collection costs authorized by the governing documents. Pull payment records and ensure no payments were misapplied.

Step 2: Send the Pre-Lien Notice

Most states and governing documents require a formal notice of intent to lien. This notice must include:

• The total amount due.
• The period the assessments cover.
• A deadline to pay before the lien is filed.
• Notice that the association intends to file a lien if the amount is not paid.

Step 3: Honor All Cure Periods

If state law provides a cure period (as Georgia SB 406 does), it must be fully exhausted before lien filing. Document proof of notice and proof that the cure period elapsed without payment.

Step 4: Prepare the Lien Document

The lien must reference the correct property (legal description and address), the amount owed, and the authority under which the lien is filed (covenant or statute). It must be signed by an authorized board member or agent.

Step 5: Record the Lien

File the lien with the county clerk where the property is located. Pay the recording fee and obtain a stamped copy for your records.

Step 6: Notify the Homeowner

After recording, send the homeowner a copy of the recorded lien along with updated payoff information. This is required in many states and demonstrates good faith.

Common Pitfalls

• Filing before all cure periods and notices are complete.
• Incorrect property descriptions.
• Failing to record the lien at the county level.
• Not providing updated payoff figures.