Assessment Collection - Assessments And Assessment Collection - CA Civil Law

Section § 6820

This section explains that after 30 days of recording a lien on a property due to unpaid assessments, the lien can be enforced through various legal means, like a court sale or a trustee's sale. It also clarifies that there are no restrictions against recovering debts from the property owner, and associations can accept a deed instead of going through foreclosure.

(a) Except as otherwise provided in this article, after the expiration of 30 days following the recording of a lien created pursuant to Section 6814, the lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to Section 2934a.

(b) Nothing in Article 2 (commencing with Section 6808) or in subdivision (a) of Section 726 of the Code of Civil Procedure prohibits actions against the owner of a separate interest to recover sums for which a lien is created pursuant to Article 2 (commencing with Section 6808) or prohibits an association from taking a deed in lieu of foreclosure.

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(Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)

Section § 6822

This law explains the process for a trustee conducting a property sale when someone defaults on their mortgage. It must follow existing procedures for mortgage sales. Additionally, the property association must notify the property owner or their chosen legal representative if a default occurs. The notice is served like a court summons. Owners can officially appoint someone to receive legal documents on their behalf. The trustee's fees are limited by specific sections of the law, and these fees include the cost of notifying about the default.

(a) Any sale by the trustee shall be conducted in accordance with Sections 2924, 2924b, and 2924c applicable to the exercise of powers of sale in mortgages and deeds of trust.

(b) In addition to the requirements of Section 2924, the association shall serve a notice of default on the person named as the owner of the separate interest in the association’s records or, if that person has designated a legal representative pursuant to this subdivision, on that legal representative. Service shall be in accordance with the manner of service of summons in Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure. An owner may designate a legal representative in a writing that is mailed to the association in a manner that indicates that the association has received it.

(c) The fees of a trustee may not exceed the amounts prescribed in Sections 2924c and 2924d, plus the cost of service for the notice of default pursuant to subdivision (b).

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(Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)

Section § 6824

This section of the law explains when a homeowners association (HOA) can impose a lien on a member's property. If a member, their guest, or tenant damages common areas or facilities, the HOA can charge the member to cover repair costs, and this charge can become a lien on their property, potentially leading to its sale if the governing documents allow it. However, if the HOA imposes a penalty for breaking rules (other than late payments), this penalty cannot be treated as a lien in the same way.

(a) A monetary charge imposed by the association as a means of reimbursing the association for costs incurred by the association in the repair of damage to common areas and facilities caused by a member or the member’s guest or tenant may become a lien against the member’s separate interest enforceable by the sale of the interest under Sections 2924, 2924b, and 2924c, provided the authority to impose a lien is set forth in the governing documents.

(b) A monetary penalty imposed by the association as a disciplinary measure for failure of a member to comply with the governing documents, except for the late payments, may not be characterized nor treated in the governing documents as an assessment that may become a lien against the member’s separate interest enforceable by the sale of the interest under Sections 2924, 2924b, and 2924c.

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(Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)

Section § 6826

This law states that an association (like a homeowner's association) cannot give away or transfer its right to collect dues or payments, or to deal with liens, to another party. The exception is if they're doing it with a bank or lender as collateral for a loan. However, if a former member owes money, the association can still transfer those debts to a third party to help with collections.

(a) An association may not voluntarily assign or pledge the association’s right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association.

(b) Nothing in subdivision (a) restricts the right or ability of an association to assign any unpaid obligations of a former member to a third party for purposes of collection.

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(Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)

Section § 6828

This law section states that liens (which are legal claims on property) made on or after January 1, 2014, are subject to the rules outlined in this article. If the lien was made before January 1, 2014, then the older laws that were in place at the time the lien was created will apply instead.

(a) Except as otherwise provided, this article applies to a lien created on or after January 1, 2014.

(b) A lien created before January 1, 2014, is governed by the law in existence at the time the lien was created.

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(Added by Stats. 2013, Ch. 605, Sec. 21. (SB 752) Effective January 1, 2014.)