Lien

A legal claim placed against a property as security for unpaid assessments or other charges owed to the association. An assessment lien gives the association a recorded interest in the property that must be satisfied before the property can be sold or refinanced with clear title. In California, the association may record a lien once a delinquent assessment is at least 12 months overdue or exceeds $1,800, whichever occurs first (Civil Code Section 5700). Before recording the lien, the association must send a pre-lien notice via certified mail at least 30 days in advance, itemizing the amounts owed and informing the owner of their right to request dispute resolution (Civil Code Section 5660). The lien must be approved by a majority vote of the board in an open meeting, and the decision to record must be documented in the minutes (Civil Code Section 5673). Assessment liens in California have limited priority — they are subordinate to first mortgages and property tax liens but superior to most other encumbrances. Once recorded, the association may pursue either judicial or nonjudicial foreclosure to recover the debt, including the principal owed, late fees, interest (up to 12% per annum), reasonable attorney fees, and collection costs. The association must offer the owner both IDR and ADR before initiating foreclosure (Civil Code Sections 5900, 5925). Improperly recorded liens can expose the association to liability, so boards should work closely with legal counsel throughout the process.