Case Law: Assessments & Collection

  • Barry v. OC Residential Properties
    (2011) 194 Cal.App.4th 861
    [Foreclosure; Redemption Price] When a property is sold through nonjudicial foreclosure of an assessment lien, the redemption price may include maintenance and repair expenses incurred by the purchaser during the redemption period that were reasonable necessary for the preservation of the property.
  • Bear Creek Master Association v. Edwards
    (2005) 31 Cal.Rptr.3d 337
    [Duty to pay; Assessment Liens] A recorded assessment lien secures the assessment debt that continues to accrue on the owner’s account; the debt is not limited solely to the amount stated in the lien at the time the lien was initially recorded.
  • Berryman v. Merit Property Management, Inc.
    (2007) 152 Cal.App.4th 1544
    [Association Records; Transfer Document Fees] An association’s managing agent is permitted to earn a profit on the fees it charges for providing property transfer documents.
  • Brown v. Professional Community Management, Inc.
    (2005) 127 Cal.App.4th 532
    [Assessments & Collection; Collection Fees] An association’s vendors are permitted to earn a profit on the fees it charges in connection with collecting delinquent assessments owed to the association.
  • Cerro De Alcala Homeowners Assn. v. Burns
    (1985) 169 Cal.App.3d Supp. 1
    [Assessments & Collection; Duty to Pay] A homeowner may not avoid his/her obligation to pay assessments levied by a HOA merely because the homeowner abandons possession of the property.
  • Diamond Heights Village Association, Inc. v. Financial Freedom Senior Funding Corp.
    (2011) 196 Cal.App.4th 290
    [Assessment Collection; Judgment Lien Merger] When a HOA assessment lien is enforced by the HOA through judicial action, the debt secured by the assessment lien is merged into the judgment.
  • Diamond v. Superior Court
    (2013) 217 Cal.App.4th 1172
    [Assessment Collection; Notice Requirements] A HOA must strictly adhere to the statutory lien and foreclosure notice requirements in order to perfect an assessment lien and foreclose on a homeowner’s property.
  • Huntington Continental Townhouse Association, Inc. v. Miner
    (2014) 230 Cal.App.4th 590
    [Assessments & Collection; Partial Payments] An association is required to accept partial payments made by a delinquent homeowner and allocate them in accordance with Civil Code Section 5655, even after the association has recorded an assessment lien.
  • Mashiri v. Epsten Grinnell & Howell
    (2017) 845 F.3d 984
    [FDCPA; Collection Notice] Homeowner successfully alleged that HOA law firm violated FDCPA because pre-lien notice payment demand timeline was inconsistent with the right under the FDCPA to dispute the debt within 30 days of receipt of letter.
  • Multani v. Witkin & Neal
    (2013) 215 Cal.App.4th 1428
    [Assessment Collection; Redemption Rights] A nonjudicial foreclosure sale may be set aside where a HOA fails to notify the foreclosed owner of his/her redemption rights after the foreclosure sale.
  • Park Place Estates Homeowners Association v. Naber
    (1994) 29 Cal.App.4th 427
    [Assessments & Collection; Duty to Pay Assessments] An association member may not assert the homeowners association’s (HOA’s) conduct as a defense or “setoff” to an action brought by the HOA against the member for the member’s failure to pay assessments.
  • Ruoff v. Harbor Creek Community Association
    (1992) 10 Cal.App.4th 1624
    [Insurance; Liability] A HOA’s members were held personally liable in excess of the HOA’s insurance policy limit for injuries stemming from the HOA’s common areas that were owned by the HOA’s members as tenants in common.
  • Watts v. Oak Shores Community Association
    (2015) 235 Cal.App.4th 466
    [Operating Rules; Rental Activities; Board Deference] Homeowners associations may adopt reasonable rules and impose fees on members relating to short-term rentals of condominium units.