HOA and condo association foreclosure in Maine

HOA and condo collection rules in Maine, step by step

• Which law covers your community

  Check your recorded declaration

  Condos created under the Maine Condominium Act, 33 M.R.S. chapter 31, follow that act. Older condos were created under the Unit Ownership Act, 33 M.R.S. sections 560 to 587, but the Condominium Act's lien section also applies to them for events after the act took effect. Subdivision HOAs that are not condos have no Maine statute of their own, so the declaration and bylaws control.

  33 M.R.S. § 1601-102

• Condo lien is automatic

  When an assessment or fine comes due

  The association has a lien on your unit for assessments and fines from the time they come due, and if an assessment is paid in installments, the whole amount is a lien when the first installment is due. Unless the declaration says otherwise, late charges, fees and interest are enforced the same way. Recording the declaration perfects the lien, so no separate lien filing is needed.

  33 M.R.S. § 1603-116(a), (d)

• Fines need notice and a hearing first

  Before a fine is charged

  A condo association can charge late fees, and it can levy reasonable fines for violating the declaration, bylaws or rules only after giving you notice and a chance to be heard. Fines are covered by the lien, so ask for the hearing and go to it.

  33 M.R.S. §§ 1603-102(a)(11), 1603-116(a)

• Foreclosure works like a mortgage foreclosure

  Within 6 years after the full amount is due

  The association forecloses its lien in like manner as a mortgage on real estate. The lien is extinguished unless the association starts enforcement within 6 years after the full amount becomes due. The judgment includes costs and reasonable attorney's fees for whichever side wins, so unpaid balances can grow quickly.

  33 M.R.S. § 1603-116(a), (e), (g)

• Your first mortgage stays ahead

  Always

  The condo lien comes ahead of other liens except those recorded before the declaration, a first mortgage whenever it was recorded, and real estate taxes and other government charges. After a first mortgage foreclosure sale, new assessments run against the unit free of the foreclosing lender's lien. Keep paying your mortgage, because it is a separate debt.

  33 M.R.S. § 1603-116(b), (i)

• Get a binding statement of what you owe

  Within 10 business days of a written request

  The association must give you, on written request, a recordable statement of unpaid assessments within 10 business days, and it binds the association. Ask for it before you pay or negotiate. We found no Maine statute requiring a payment plan, so ask the board for one in writing.

  33 M.R.S. § 1603-116(h)

Common questions in Maine