HOA and condo association foreclosure in Arkansas

HOA and condo collection rules in Arkansas, step by step

• Condos: the Horizontal Property Act

  Any condo, called a horizontal property regime

  Each condo owner must pay a share of the costs of running and repairing the common elements, plus other expenses lawfully agreed on, as set by the master deed. You cannot avoid paying by not using the common areas or by abandoning your unit.

  Ark. Code Ann. § 18-13-116(a), (b)

• 2025 changes for newer condos

  Regimes organized on or after September 1, 2025

  Act 516 of 2025 says a past due assessment may bear interest at a lawful rate the association sets, and lets the association add extra assessments to units offered for rent to cover added costs. It applies to condo regimes organized on or after September 1, 2025, and to older ones that amend their master deed to opt in.

  Ark. Code Ann. § 18-13-116(a)(2), (b)(4), as amended by Act 516 of 2025

• Who is paid first when a condo is sold

  At any sale or conveyance

  Unpaid condo assessments are paid out of the sale price ahead of other charges, except past due property taxes and payments due on recorded mortgages. So a recorded mortgage comes ahead of the association.

  Ark. Code Ann. § 18-13-116(c)

• The buyer can be liable for back dues

  After a sale, including a foreclosure sale

  The buyer of a condo unit is jointly liable with the seller for unpaid assessments up to the sale. The Arkansas Supreme Court held in 2014 that this applies to a buyer at a mortgage foreclosure sale too. You still owe what you owed, so a sale does not erase your debt to the association.

  Ark. Code Ann. § 18-13-116(d); First State Bank v. Metro Dist. Condos. Prop. Owners' Ass'n, 2014 Ark. 48

• Other HOAs: read your documents

  First step if you are not in a condo

  We found no Arkansas statute that sets lien, notice, payment plan or foreclosure rules for subdivision HOAs. Get your recorded declaration or bill of assurance, the bylaws and any collection policy from the association or the county circuit clerk's land records, and read what they say about liens, late fees, interest and attorney fees.

• If you are sued

  Meet the deadline on the summons

  An association that wants to collect or enforce a lien usually has to file in court, and a judge decides what you owe. Do not ignore court papers. Ask the association in writing for an itemized ledger, and call Legal Aid of Arkansas.

Common questions in Arkansas