Subdivisions

PL 135-2007, SB 233, Homeowners' Association Liens, Effective Date: July 1, 2007, Statutes Amended: New Indiana Code Chapter 32-28-14, Homeowners' Association Liens

This new chapter to Indiana Code Title 32, Article 28 establishes procedures for creating, recording, foreclosing, and releasing a lien on real estate filed by a homeowners' association for nonpayment of common expenses assessed against the real estate.

The legislation provides definitions for the terms, "common expenses," "homeowners association," "real estate," and "subdivision." According to this chapter, a homeowners' association lien takes priority upon the recording of a notice of a lien in the office of the county recorder. However, to be recorded, the notice of lien must contain the name and address of the homeowners' association, the address and legal description of the subject property, the name of the owner of the property subject to the lien, and the amount of the lien. Also, the notice of lien must be signed by an officer of the homeowners' association and acknowledged as in the case of deeds. The grantee of real estate governed by the homeowners' association is entitled to a statement of the amount of unpaid assessments and will not be liable for those assessments, unless the lien is properly recorded. Additionally, a subsequent purchaser, and his successors or assignees, of real estate is not liable for the share of the common expenses or assessments by the homeowners' association that became due prior to the acquisition.

Under this chapter, a homeowners' association lien may be enforced by filing a complaint in the circuit or superior court of the county in which the real estate subject to the lien is located. However, if the complaint is not filed within one year of the date the notice of lien was recorded, the lien is void. The lien will also be void if written notice to the owner or holder of the lien to file an action to foreclose the lien is filed and the owner or holder of the lien fails to file an action to foreclose the lien within 30 days after the date such notice is received. However, if that time passes, the claim may still be collected as other claims are collected by law.

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