Encumbrances
Homeowner Association Lien
The Deeds of Restrictions create and reserve contractual inchoate liens (liens that have not been perfected) against the owner’s real property for unpaid assessments by the Homeowner Association.
The filing of a Notice of Lien is the formal assertion and publication to the world of the nonpayment of the assessments.
KRS 382.110(1) provides that “[a]ll deeds, mortgages and other instruments required by law to be recorded to be effectual against purchasers without notice, or creditors, shall be recorded in the county clerk’s office …”.
Similar to the condominium Notice of Lien, the filing by the Homeowners Association of the Notice of Lien formally asserts and publishes to “purchasers without notice, or creditors” the nonpayment of the Homeowner Association assessments and contractually reserved lien against the delinquent owner’s real property to secure payment of the same.
This Notice of Lien is recorded in the owner’s chain of title to the real property to warn all persons, including “purchasers without notice, or creditors”, that the real property is subject to the lien of the unpaid Homeowners Association assessment that was created and reserved in the Deeds of Restrictions.
(Information above provided by Robert S. Ryan, Attorney with Fowler, Measle & Bell Fayette County)
The document requires:
• Name of the Home Owners Association
• Name of the Property Owner
• Legal Description
• Amount Due
• A Preparation Statement (KRS 382.335)
• Signed by Homeowner Association Attorney or Officer, Signature must be acknowledged
• The clerk shall request a return mail address (KRS 382.240)
