Legal Question in Real Estate Law in Michigan

Association dues

Please help! We have a Declartion of Covenants for our housing development that requires every home owner to pay annual dues to the association. We are faced with serveral who refuses to pay and according to our bylaws we

need to put a lien against each of these home owners who refuse to pay their annual dues. Only $45.00.

Is there a form we can use to handle this matter? I am a Notary not a Lawyer!

Sincerely,

President of Bluff Lakes housing development

(616) 772-5228


Asked on 4/11/08, 9:52 am

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Association dues

Yes, there is a specific form or format you need to follow when drafting a lien, as it has to be recorded in the county where the property is located (and you will have to pay a recording fee). It is important to get the liens recorded/filed as quickly as possible, in the event that a homeowner is selling their property and/or to secure the HOA's interest.

Have you tried sending reminder or demand letters? If the annual dues are only $45, it's going to end up costing you more time and money to prepare and record a lien. However, you can then seek to recoup the money/costs/legal fees from the homeowner, if that is provided for in your bylaws.

Keep in mind that if you do file a lien, and then the homeowner pays it off, you then have to prepare and file a Discharge of the lien (more time and money).

Thanks.

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Answered on 4/13/08, 12:53 pm


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