Under the Georgia Property Owners Association Act, a Homeowner’s Association (“HOA”) may make assessments against lot owners residing in a particular development or subdivision for their proportionate share of the expenses and materials or services provided by the HOA. HOA dues and assessments constitute a lien against the individual property from the date the assessment becomes due and payable, notwithstanding the fact that the amount owed might be billed in installments. The notice of this lien is served by the original recording of the Declaration.
Under Georgia law, HOAs are required to furnish a written statement regarding amounts due and payable within five days of receipt of the request in writing for such statement. The failure of the association to provide this information within the five day period has the effect of extinguishing the lien as to any interest acquired by the purchaser or lender.
If there is a HOA, statutory or otherwise, please ensure the seller provides information regarding a contact. The HOA will need to verify the current status of the dues/assessments, including where and when to send payment.
Whenever possible the dues, if not paid, will be paid at closing through the next due date. In either event, the dues will be prorated between the buyer and seller for the current billing period. We will furnish to you the contact information for the association as it was furnished to us.