CHAPTER 14. HOMEOWNERS ASSOCIATION LIENS
IC 32-28-14
Chapter 14. Homeowners Association Liens
IC 32-28-14-1
"Common expenses"
Sec. 1. As used in this chapter, "common expenses" means:
(1) all sums lawfully assessed against a subdivision by ahomeowners association;
(2) expenses of:
(A) administration;
(B) maintenance;
(C) repair; or
(D) replacement;
of subdivision common areas and facilities;
(3) expenses agreed upon as common expenses by ahomeowners association; and
(4) expenses declared common expenses by the bylaws oranother written instrument of a homeowners association.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-2
"Homeowners association"
Sec. 2. As used in this chapter, "homeowners association" meansall the owners of real estate in a subdivision acting as an entity inaccordance with any:
(1) bylaws;
(2) covenants; or
(3) other written instruments;
of the homeowners association.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-3
"Real estate"
Sec. 3. As used in this chapter, "real estate" means a right, a title,or an interest in real property.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-4
"Subdivision"
Sec. 4. As used in this chapter, "subdivision" means the divisionof a parcel of land into lots, parcels, tracts, units, or interests in themanner defined and prescribed by a subdivision control ordinanceadopted by a legislative body under IC 36-7-4.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-5
Homeowners association lien; notice of lien requirements
Sec. 5. (a) All sums assessed by a homeowners association butunpaid for the share of the common expenses chargeable to an ownerof real estate in a subdivision constitute a homeowners association
lien on the real estate effective as provided in section 6 of thischapter.
(b) The priority of a homeowners association lien is establishedon the date the notice of the lien is recorded under section 6 of thischapter.
(c) A notice of lien may not be recorded under subsection (a)unless the notice of lien:
(1) contains:
(A) the name and address of the homeowners association;
(B) the address and legal description of the property that issubject to the lien;
(C) the name of the owner of the property that is subject tothe lien; and
(D) the amount of the lien; and
(2) is:
(A) signed by an officer of the homeowners association; and
(B) acknowledged as in the case of deeds.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-6
Lien attaches upon recording of notice of lien
Sec. 6. (a) A homeowners association lien under this chapterattaches to real estate upon the recording of a notice of lien by thehomeowners association in the office of the recorder of the county inwhich the real estate is located.
(b) A homeowners association lien under this chapter attaches onthe date of the recording of the notice of the lien under subsection (a)and does not relate back to:
(1) a date specified in the bylaws, the covenants, or anotherwritten instrument of the homeowners association; or
(2) the date the common expenses were assessed.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-7
Liability for unpaid assessment
Sec. 7. (a) Except as provided in subsection (b), in a voluntaryconveyance, the grantee of real estate is jointly and severally liablewith the grantor for all unpaid assessments against the grantor for thegrantor's share of the common expenses incurred before the grant orconveyance, without prejudice to the grantee's right to recover fromthe grantor the amounts of common expenses paid by the grantee.
(b) The grantee:
(1) is entitled to a statement from the manager, board ofdirectors, or other governing authority of the homeownersassociation that sets forth the amount of the unpaid assessmentsagainst the grantor; and
(2) is not liable for, and the real estate conveyed is not subjectto a homeowners association lien for, any unpaid assessmentsagainst the grantor unless the lien for unpaid assessments isrecorded under section 6 of this chapter before recording the
deed by which the grantee takes title.
(c) If the mortgagee of a first mortgage of record or otherpurchaser of real estate obtains title to the real estate as a result offoreclosure of the first mortgage, the acquirer of title or the acquirer'ssuccessors and assigns are not liable for the share of the commonexpenses or assessments by the homeowners association chargeableto the real estate that became due before the acquisition of title toreal estate by the acquirer. The unpaid share of common expenses orassessments is considered to be common expenses collectible fromall of the owners of real estate in the subdivision, including theacquirer or the acquirer's successors and assigns.
As added by P.L.135-2007, SEC.3.
IC 32-28-14-8
Time limit for enforcing lien
Sec. 8. (a) A homeowners association may enforce a homeownersassociation lien by filing a complaint in the circuit or superior courtof the county where the real estate that is the subject of the lien islocated. The complaint:
(1) may not be filed earlier than one (1) year; and
(2) must be filed not later than five (5) years;
after the date the statement and notice of intention to hold a lien wasrecorded under section 6 of this chapter.
(b) If a lien is not enforced within the time set forth in subsection(a), the lien is void.
(c) If a lien is foreclosed under this chapter, the court renderingjudgment shall order a sale to be made of the real estate subject tothe lien. The officers making the sale shall sell the real estate withoutany relief from valuation or appraisement laws.
As added by P.L.135-2007, SEC.3. Amended by P.L.167-2009,SEC.3.
IC 32-28-14-9
Voiding of lien for failure to foreclose
Sec. 9. (a) A homeowners association lien under this chapter isvoid if both of the following occur:
(1) The owner of the real estate subject to the homeownersassociation lien or any person or corporation having an interestin the real estate, including a mortgagee or a lienholder,provides written notice to the owner or holder of the lien to filean action to foreclose the lien.
(2) The owner or holder of the lien fails to file an action toforeclose the lien in the county where the real estate is locatedwithin one (1) year after the date the owner or holder of the lienreceived the notice described in subdivision (1).
However, this section does not prevent the claim from beingcollected as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) byregistered or certified mail to the owner or holder of the homeownersassociation lien at the address given in the recorded statement may
file an affidavit of service of the notice to file an action to foreclosethe lien with the recorder of the county in which the real estate islocated. The affidavit must state the following:
(1) The facts of the notice.
(2) That more than one (1) year has passed since the notice wasreceived by the owner or holder of the lien.
(3) That an action for foreclosure of the lien is not pending.
(4) That an unsatisfied judgment has not been rendered on thelien.
(c) The recorder shall record the affidavit of service in themiscellaneous record book of the recorder's office. When therecorder records the affidavit under this subsection, the real estatedescribed in the homeowners association lien is released from thelien.
(d) An affidavit recorded under subsection (c) must crossreference the lien.
As added by P.L.135-2007, SEC.3. Amended by P.L.167-2009,SEC.4.