HOA and condo association foreclosure in Alabama

HOA and condo collection rules in Alabama, step by step

• Find out which law covers your community

  First step

  The Alabama Uniform Condominium Act covers condos created after January 1, 1991, and its lien section also applies to older condos for events after that date. The Homeowners' Association Act covers HOAs whose declaration was recorded on or after January 1, 2016, and older HOAs only if a majority of members voted to opt in. If neither act covers your HOA, your recorded declaration controls how it collects.

  Ala. Code §§ 35-8A-102, 35-20-3

• Condos: the lien is automatic

  From the day an assessment or fine is due

  A condo association has a lien on your unit for assessments, charges and fines from the day they become due. The recorded declaration is the notice, so no separate lien filing is needed. Fines can be charged only after notice and a chance to be heard, and late charges, fines and interest count as assessments unless the declaration says otherwise.

  Ala. Code §§ 35-8A-316(a), (d), 35-8A-302(a)(11)

• HOAs under the 2016 act: certified letter before a lien

  At least 30 days before the lien is recorded

  The HOA must send you written notice by certified mail at least 30 days before it records a statement of lien with the probate judge. It must record that statement within 12 months after the assessment came due. Penalties for rule violations can be charged only after you get a chance to be heard before the board, and a penalty is then treated as an assessment.

  Ala. Code §§ 35-20-12(c), (d), 35-20-11

• How the association forecloses

  Condo lien: within 3 years of the due date

  A condo association can foreclose like a mortgage lender, after giving you and your lienholders reasonable advance notice, and subject to Alabama's redemption rights. An HOA under the 2016 act forecloses through a court case, and the court orders a sale after notice in a county newspaper once a week for three weeks. A condo lien ends if the association does not start enforcing it within three years after the full amount came due.

  Ala. Code §§ 35-8A-316(a), (e), 35-20-12(e), (f)

• Priority over your mortgage

  Up to 6 months of condo dues

  A condo lien comes ahead of a first mortgage only for up to six months of regular budget assessments, not the association's legal fees, and less if Fannie Mae, Freddie Mac or Ginnie Mae rules allow less. An HOA lien under the 2016 act comes after recorded mortgages. Either way, you still owe your mortgage, so keep paying it.

  Ala. Code §§ 35-8A-316(b), 35-20-12(b)

• Homestead does not protect a condo from the lien

  Any condo lien

  The condo act says the association's lien is not subject to homestead or other exemptions. If the association wins in court, the judgment must include court costs and reasonable attorney's fees for the winner, so the balance can grow fast.

  Ala. Code § 35-8A-316(b), (g)

• Get the payoff in writing

  Condo answer due in 10 business days

  A condo owner can send a written request to the association's registered office for a statement of what is owed, and the association must answer within 10 business days or lose its lien for that amount, though you still owe the debt. The fee can be up to $25 if the condo documents allow it. An HOA under the 2016 act must give records, including assessments and pending liens, within 30 days of a written request.

  Ala. Code §§ 35-8A-316(h), 35-20-13

Common questions in Alabama