Home owner's association question
 

This isn't about bashing HOAs, so let's just not go there.

Our HOA is considering filing a lien against all homes in our subdivision. This is because sometimes the title companies do not properly gather the required transfer fees and some board members think that via the lien a mechanism will be in place to collect the transfer fees.

Now, while I agree that the board should be able to collect the transfer fees, I have not been able to find any portion of Oregon law that allows HOAs to file liens preemptively.

Has anyone experienced this with their HOA?

Re: Home owner's association question
 

Don't know about Oregon laws, but in Bama, they would NOT be able to file such a lien. Filing liens against titles without an actual debt would be a major No-no that would make the filer liable under what's known as "Slander of Title". I would think that would hold true for your state as well.

Re: Home owner's association question
 

Without providing you with legal advice, my gut tells me this is impermissible unless you consent to it. Check your condo documents to see if there is any language which would support their preemptive security interest.

Re: Home owner's association question
 

:tpd:
Sounds like something they just cannot do.

Re: Home owner's association question
 

/begin non-legal advice/

In Texas, as I understand it, if the CCRs provide for a preemptive lien for such purposes (which many do), then it's permissible , as the lien already exists (and you've already agreed to it by taking subject to the CCRs) and any additional filings would be formalities.

I have no clue about Oregon, but if it's important to you, give me a call sometime and I'm sure we can figure it out.

/end non-legal advice/

Re: Home owner's association question
 

Unless there is an actual debt due to the HOA, how can they file a lien against a property? Seems pretty bogus to me. If they aren't getting their fees, they need to take it up with the homeowner (seller) and the title company.

Re: Home owner's association question
 

Would it be necessary to advise any refinance companies or home equity loan lenders in the future that there is a "lien" against your property then? Seems kind of ridculous to me. :2

Re: Home owner's association question
 

You may want to contact a local Real Estate attorney in your area with knowledge in this area. He/she may be able to provide you with some free info and case law for Oregon as to if a HOA can or cannot...