Foreclosure and Liens
1: We asked for an Open Hearing to dispute and appeal our Violation Notice. But if they Fine Us despite no evidence at all or that would stand up in court, you will probably say that our only recourse is to sue them. Is that correct?
2: In our Violation Notice they are threatening us with foreclosure if we don’t pay fines for CC&R Violations.
It would seem that according to the following Law that they Cannot Foreclose on Member Expenses. Are we interpreting this correctly and are CC&R Violation Fines are Member Expenses and may not be foreclosed?
https://legiscan.com/AZ/text/SB1494/2025
Section 1. Section 33-1807
B. Notwithstanding any provision in the community documents, member expenses are not enforceable as common expense liens under this subsection section. The association has a judgment lien for member expenses after the entry of a judgment in a civil suit for those member expenses from a court of competent jurisdiction and the recording of that judgment in the office of the county recorder as otherwise provided by law. The association’s judgment lien for member expenses may not be foreclosed and is effective only on conveyance of any interest in the real property.
Thank you in advance,
Cindy
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Cindy.
You are correct only the statutory lien for common expense assessments can be foreclosed by the association. That lien need not be recorded and is effective the day the assessment is due. Any other fine, fee or expense charged by the association is not a lien until the association sues the homeowner for a judgment on those moneys and is granted a judgement lien. Those liens are not foreclosable. One important note to remember here is just because an association is owed money for fines and fees, that money is not collectable if you sell your home unless a judgement lien has been awarded. The association can still sue you after the fact for any money claimed but they cannot collect it from home sale proceeds without first being granted a lien.
Dennis