In Oklahoma, What Are Homeowners Associations? Can HOAs Put A Lien On My Home?

Homeowners Associations in Oklahoma are found throughout most counties in our state. As a homeowner in Oklahoma, it’s important to understand the role and powers of Homeowners Associations (HOAs) and how they might impact your property rights. Importantly, an HOA is an organization that makes and enforces rules for the properties and residents within its jurisdiction. If you own a home in a planned community, like a subdivision, you’re likely part of an HOA. Homeowners associations s in Oklahoma hold many different powers over its members. They also have a toolbox of different legal remedies they use to enforce the contract rights of the association. Some of the rules may include the ability to place liens on your property if you are found in violation of association rules. Still others may limit dispute resolutions to mediation or arbitration.

What Are HOAs in Oklahoma?

In Oklahoma, the term “real estate development” includes developments with separately owned lots that either share common areas or have mutual interests or restrictions. This could be anything from a shared park area to rules about the color you can paint your house. The HOA is typically formed by the property developers, and membership is transferred to you when you buy a property in the development.

Can A HOA Put A Lien On Your Property?

A HOA can put a lien on your property, but there are specific conditions and processes they must follow. According to Oklahoma Statutes Section 60-852, an HOA is formed for managing common areas and enforcing rules. More importantly, the law gives an HOA the power to enforce obligations of its members through levies or assessments. If you, as a homeowner, fail to comply with these financial obligations, it may lead to a lien on your property.

This lien process is not arbitrary. The HOA must inform you in writing about the rules and potential financial liabilities when you join. If you default on these obligations, they can place a lien, which can be foreclosed just like a mortgage. This means if you don’t pay your HOA fees or fines, you could potentially lose your home.

It’s also important to note that each property in an HOA is assessed taxes independently. Your tax liability is solely for your property and won’t be affected by others’ delinquencies. So, it’s in your interest to keep up with your individual taxes and HOA fees.

Membership In Hoa

Another key aspect is the transfer of membership. Under Oklahoma Statutes Section 60-854, when you buy a property in an HOA, you automatically become a member, and this membership transfers with the legal transfer of the property. Therefore, when buying a home in an HOA, it’s vital to understand the agreements (covenants) and restrictions you’re agreeing to. Furthermore, when you’re buying a property, , you should receive a copy of the recorded covenants and restrictions. This is part of the real estate closing process, ensuring that you’re well-informed about the rules governing your new home.

Can Homeowners Association Liens be Discharged in Bankruptcy

The answer to this question is more nuanced than a simple yes or no. The first thing to consider is if you are keeping your home but filing a bankruptcy will the debt be forgive. Generally the answer is that the past due amount may be forgiven but the lien that the association placed on your home will not be removed. This includes for both filing a chapter 7 or a chapter 13 bankruptcy. With that said, the title to the property cannot be conveyed without satisfying the past due amount that is included in the lien.

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Tulsa Oklahoma HOA Lawyers

If you’re within an HOA, you’re subject to the rules and financial obligations set by the association. While HOAs play a significant role in maintaining property values and community standards, they also come with responsibilities and potential legal implications, such as liens, for homeowners.  Kania Law Office has experience handling legal issues related to Homeowners Associations. Our HOA lawyers in Oklahoma help guide homeowners through their rights and responsibilities. If you’re dealing with HOA concerns, contact Kania Law Office at (918) 743-2233 or online for help.