HOA statue of limitations to collect (foreclose, HOA fees, insurance)

[Judy Larson]

I am looking to see if there is a limitation to collect back HOA payments & late fees in the state of CO. Can anyone tell me if there is one, if so, how far back may I go as a new owner of the HOA for someone that owes years worth of HOA dues.

[Dreaming of Hawaii]

Usually if enough money is owed the HOA will file a lien against the property.

I'm not totally sure I understand your question -- are you a new owner looking to purchase a property that has unpaid HOA fees? Or are you a new owner on the HOA Board?

[DurangoJoe]

HOAs are regulated by the dept of state in Colorado:

https://www.colorado.gov/pacific/dor...esource-center

[IC_deLight]

There has to be at least 6 months worth of assessments in arrears and the HOA must initiate action to enforce the assessment lien within 6 years.
Colo. Rev. Stat. § 38-33.3-316(5).

[cully]

Originally Posted by Judy Larson

I am looking to see if there is a limitation to collect back HOA payments & late fees in the state of CO. Can anyone tell me if there is one, if so, how far back may I go as a new owner of the HOA for someone that owes years worth of HOA dues.

Yes, I don't understand either. Instead of new owner of the HOA do you mean new owner IN the HOA? Or do you mean new president of the HOA? If you're just a regular resident, you can't personallly go after a former neighbor who hasn't been paying.

Maybe you mean you own a home and the former owner of the home didn't pay. But that debt doesn't pass to the next owner.

Where's the icon for scratching my head. Hmmm....not the head slapping one, I have an allergy headache already. Oh,maybe the one that looks like it's thinking...

[IC_deLight]

Originally Posted by cully

Yes, I don't understand either. Instead of new owner of the HOA do you mean new owner IN the HOA? Or do you mean new president of the HOA? If you're just a regular resident, you can't personallly go after a former neighbor who hasn't been paying.

Actually, any owner can sue to enforce restrictive covenants.

Originally Posted by cully

Maybe you mean you own a home and the former owner of the home didn't pay. But that debt doesn't pass to the next owner.

That's a misleading statement. Although the new owner does not have in personam (i.e., personal) liability for the former owner's debt, the property that the new owner just purchased is security for the old owner's debt. The HOA can foreclose on the new owner (divesting the new owner of ownership of the property) because there is in rem liability for the debt. The only way the new owner can prevent that is to pay off the debt allegedly accrued by the former owner. If the new owner obtained title insurance, the title company will typically identify that debt as an exception to title coverage in the commitment prior to closing. If the new owner objected to the exception the debt would have had to get settled at closing. If the new owner obtained a title policy and there was no exception, then the new owner has a claim to pursue with the title company.

[cully]

Originally Posted by IC_deLight

Actually, any owner can sue to enforce restrictive covenants.



That's a misleading statement. Although the new owner does not have in personam (i.e., personal) liability for the former owner's debt, the property that the new owner just purchased is security for the old owner's debt. The HOA can foreclose on the new owner (divesting the new owner of ownership of the property) because there is in rem liability for the debt. The only way the new owner can prevent that is to pay off the debt allegedly accrued by the former owner. If the new owner obtained title insurance, the title company will typically identify that debt as an exception to title coverage in the commitment prior to closing. If the new owner objected to the exception the debt would have had to get settled at closing. If the new owner obtained a title policy and there was no exception, then the new owner has a claim to pursue with the title company.

Oy

[cully]

Originally Posted by cully View Post
Yes, I don't understand either. Instead of new owner of the HOA do you mean new owner IN the HOA? Or do you mean new president of the HOA? If you're just a regular resident, you can't personally go after a former neighbor who hasn't been paying.



[quote=[B]IC_deLight;41888420]Actually, any owner can sue to enforce restrictive covenants.[/b]

It's my experience as far as obeying hoa rules the owner might sue the hoa corporation to perform appropriately as they see fit, but not the neighbor. The corporation then decides whether to do their job of management and fiduciary care and starts the process against the neighbor as listed in the documents. The idea here being a neighbor doesn't really have the right to another neighbor's fees but the hoa corporation does....as per the hoa docs.

[cully]

Originally Posted by IC_deLight

Actually, any owner can sue to enforce restrictive covenants.



That's a misleading statement. Although the new owner does not have in personam (i.e., personal) liability for the former owner's debt, the property that the new owner just purchased is security for the old owner's debt. The HOA can foreclose on the new owner (divesting the new owner of ownership of the property) because there is in rem liability for the debt. The only way the new owner can prevent that is to pay off the debt allegedly accrued by the former owner. If the new owner obtained title insurance, the title company will typically identify that debt as an exception to title coverage in the commitment prior to closing. If the new owner objected to the exception the debt would have had to get settled at closing. If the new owner obtained a title policy and there was no exception, then the new owner has a claim to pursue with the title company.

It's my experience that if there is debt that the settlement company did not find out about from the hoa corporation and the buyer then settled it should not be the buyer's fault. There are others to sue.

[Dreaming of Hawaii]

Interesting that we're all having this lively discussion, and have heard nothing from the OP since she posted two days ago.

Judy, are you here?