What is an HOA lien?

An HOA lien refers to a legal claim placed on a property by a homeowners association (HOA) due to the property owner's failure to pay required dues or assessments. Homeowners associations are established to manage communal areas and maintain the overall integrity of a residential community, which often involves collecting regular fees from homeowners to fund maintenance and services.

When a homeowner neglects to pay these dues, the HOA has the right to file a lien against the property. This mechanism serves to protect the financial interests of the association and ensure that all members contribute to the community’s upkeep. This lien can ultimately affect the property owner's ability to sell or refinance their home, as most lenders will require any outstanding liens to be resolved before proceeding with such transactions.

The other choices refer to different types of liens. For example, a lien for unpaid taxes pertains to government claims for tax revenue, while a legal claim by a contractor usually involves work or improvements made to a property that remain unpaid. A voluntary lien is one that the property owner agrees to, such as a mortgage, and does not apply in the context of HOA dues where the lien is imposed due to non-payment.