Assessment Lien Release

Where a member becomes delinquent in the payment of assessments to the association, the association is permitted to record a Notice of Delinquent Assessment (an “assessment lien”) against the member’s property to act as security for the payment of the member’s assessment debt, in addition to the late fees, interest, collection costs and attorney’s fees imposed upon the member in connection with the member’s delinquency. (Civ. Code § 5675(a); See also “Notice of Delinquent Assessment (Assessment Lien).”) Once the member pays the association the amount it is owed, the association must take the following actions within twenty-one (21) calendar days:

  • Record Lien Release – The association must “record or cause to be recorded in the office of the county recorder in which the [assessment lien] is recorded a lien release or notice of rescission.” (Civ. Code § 5685(a).) and
  • Provide Copy of Release or Notice to Owner – The association must also provide the member (the owner of the separate interest against which the assessment lien was first recorded) “a copy of the lien release or notice that the delinquent assessment has been satisfied.” (Civ. Code § 5685(a).)

Assessment Lien Recorded in Error
If it is determined that the assessment lien was recorded in error, the party who recorded the lien must take the following actions within twenty-one (21) calendar days:

  • Record Lien Release – The party who recorded the lien must “record or cause to be recorded in the office of the county recorder in which the [assessment lien] is recorded a lien release or notice of rescission.” (Civ. Code § 5685(b).) and
  • Provide Declaration of Error & Copy of Release to Owner – The party who recorded the lien must also provide the member (the owner of the separate interest against which the assessment lien was first recorded) with “a declaration that the lien filing or recording was in error and a copy of the lien release or notice of rescission.” (Civ. Code § 5685(b).)

Promptly Reverse All Late Charges, Fees & Costs
In addition to the above, if it is determined that the assessment lien was recorded in error, the association must “promptly reverse all late charges, fees, interest, attorney’s fees, costs of collection, costs imposed for the [pre-lien letter], and costs of recordation and release of the lien authorized under subdivision (b) of Section 5720, and pay all costs related to any related dispute resolution or alternative dispute resolution.” (Civ. Code § 5685(c).)

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