Can a property development association file a lien of some sort against a property owner?
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Homeowner associations often charge monthly fees or dues to maintain common areas, and can levy assessments on residents for major renovations or repairs. The fee policy depends on what the governing association determines it to be. In some cases, residents who either cannot or will not pay required fees can face foreclosure. Associations may decide to bring legal action against a resident for alleged violations of the bylaws or covenants that are not resolved. A court of law which has jurisdiction over the parties and the subject matter may render a formal judgment for or against the resident. Courts of law may award monetary damages, impose injunctions, impound vehicles, or compel removal of personal property such as pets. They may empower the association itself to take action, or compel relief through other resources, such as local police.
A lien is the right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as the payment of lawful charges for work done on the property. The right of lien generally arises by operation of law, but in some cases it is created by express contract. In some states, a claim must be filed in the office of the clerk of the court or a suit brought within a limited time. In some states no lien is created unless the work done or the goods furnished amount to a certain specified sum, while in others there is no limit to the amount. In some states, a party must notify the property owner prior to filing a lien, but in other states such liens can be filed without any notification to the owner.
The filing requirements and statutes of limitation for liens vary according to the law of each state. Liens can generally be removed by the payment of the amount owed. This payment can occur at any time up to and including the stage at which the closing documents for the sale of the property are signed. Liens can be discharged after a certain length of time. Therefore, if a property owner is in no hurry to sell the property, and the lien holder is not seeking to foreclose, it may make sense to do nothing and wait until the lien expires. If the lien is not renewed, the cloud on the title will no longer exist. If a person pays and satisfies a lien in order to have it discharged, a written, legally sufficient release or satisfaction must be obtained and recorded in the appropriate government office to clear title to the property.
There are several types of liens, all of which could cloud the title and prevent the seller from conveying marketable title to the buyer. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. Laws regarding judgment liens vary by jurisdiction, so local laws should be consulted for specific requirements.
An equitable lien is a legal fiction created by courts in certain circumstances in which justice may require the creation of a lien. Courts of equity have the power to create so-called equitable liens on property to correct some injustice. For example, a person who lived on the property and contributed a substantial amount to the improvement of the property may be able to, with the assistance of the court, obtain a lien on the property by suing for a constructive trust.