SENATE BILL No. 233
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-28-14.
Synopsis: Homeowners association liens. Establishes procedures for
creating, recording, foreclosing, and releasing a lien on real estate filed
by a homeowners association for nonpayment of common expenses
assessed against the real estate.
Effective: July 1, 2007.
January 8, 2007, read first time and referred to Committee on Judiciary.
First Regular Session 115th General Assembly (2007)
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SENATE BILL No. 233
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-28-14; (07)IN0233.1.1. -->
SECTION 1. IC 32-28-14 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 14. Homeowners Association Liens
Sec. 1. As used in this chapter, "common expenses" means:
(1) all sums lawfully assessed against a subdivision by a
(2) expenses of:
(C) repair; or
of subdivision common areas and facilities;
(3) expenses agreed upon as common expenses by a
homeowners association; and
(4) expenses declared common expenses by the bylaws or
another written instrument of a homeowners association.
Sec. 2. As used in this chapter, "homeowners association"
means all the owners of real estate in a subdivision acting as an
entity in accordance with any:
(2) covenants; or
(3) other written instruments;
of the homeowners association.
Sec. 3. As used in this chapter, "real estate" means a right, a
title, or an interest in real property.
Sec. 4. As used in this chapter, "subdivision" means the division
of a parcel of land into lots, parcels, tracts, units, or interests in the
manner defined and prescribed by a subdivision control ordinance
adopted by a legislative body under IC 36-7-4.
Sec. 5. (a) All sums assessed by a homeowners association but
unpaid for the share of the common expenses chargeable to an
owner of real estate in a subdivision constitute a homeowners
association lien on the real estate effective as provided in section 6
of this chapter.
(b) The priority of a homeowners association lien is established
on the date the notice of the lien is recorded under section 6 of this
(c) The following liens have priority over a recorded
homeowners association lien:
(1) A valid mechanic's lien that is recorded after a
homeowners association lien is recorded under this chapter if
the priority of the mechanic's lien relates back to a date
before the homeowners association lien was recorded.
(2) Prior recorded liens that secure revolving credit and
future advances of construction loans.
(3) Purchase money mortgages.
(4) Unpaid taxes and assessments in favor of a governmental
Sec. 6. (a) A homeowners association lien under this chapter
attaches to real estate upon the recording of a notice of lien by the
homeowners association in the office of the recorder of the county
in which the real estate is located.
(b) A homeowners association lien under this chapter attaches
on the 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 another
written instrument of the homeowners association; or
(2) the date the common expenses were assessed.
Sec. 7. (a) Except as provided in subsection (b), in a voluntary
conveyance, the grantee of real estate is jointly and severally liable
with the grantor for all unpaid assessments against the grantor for
the grantor's share of the common expenses incurred before the
grant or conveyance, without prejudice to the grantee's right to
recover from the grantor the amounts of common expenses paid by
(b) The grantee:
(1) is entitled to a statement from the manager, board of
directors, or other governing authority of the homeowners
association that sets forth the amount of the unpaid
assessments against the grantor; and
(2) is not liable for, and the real estate conveyed is not subject
to a homeowners association lien for, any unpaid assessments
against the grantor in excess of the amount set forth in the
(c) If the mortgagee of a first mortgage of record or other
purchaser of real estate obtains title to the real estate as a result of
foreclosure of the first mortgage, the acquirer of title or the
acquirer's successors and assigns are not liable for the share of the
common expenses or assessments by the homeowners association
chargeable to the real estate that became due before the acquisition
of title to real estate by the acquirer. The unpaid share of common
expenses or assessments is considered to be common expenses
collectible from all of the owners of real estate in the subdivision,
including the acquirer or the acquirer's successors and assigns.
Sec. 8. (a) A person may enforce a homeowners association lien
by filing a complaint in the circuit or superior court of the county
where the real estate that is the subject of the lien is located. The
complaint must be filed not later than one (1) year after the date
the statement and notice of intention to hold a lien was recorded
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 rendering
judgment shall order a sale to be made of the real estate subject to
the lien. The officers making the sale shall sell the real estate
without any relief from valuation or appraisement laws.
Sec. 9. (a) A homeowners association lien under this chapter is
void if both of the following occur:
(1) The owner of the real estate subject to the homeowners
association lien or any person or corporation having an
interest in the real estate, including a mortgagee or a
lienholder, provides written notice to the owner or holder of
the lien to file an action to foreclose the lien.
(2) The owner or holder of the lien fails to file an action to
foreclose the lien in the county where the real estate is located
within thirty (30) days after the date the owner or holder of
the lien received the notice described in subdivision (1).
However, this section does not prevent the claim from being
collected as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) by
registered or certified mail to the owner or holder of the
homeowners association lien at the address given in the recorded
statement may file an affidavit of service of the notice to file an
action to foreclose the lien with the recorder of the county in which
the real estate is located. The affidavit must state the following:
(1) The facts of the notice.
(2) That more than thirty (30) days have passed since the
notice was received 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 the
(c) The recorder shall:
(1) record the affidavit of service in the miscellaneous record
book of the recorder's office; and
(2) certify on the face of the record any homeowners
association lien that is fully released.
When the recorder records the affidavit and certifies the record
under this subsection, the real estate described in the homeowners
association lien is released from the lien.