Submission to the POA allows homeowners associations to charge a late fee equal to the greater of $10.00 or ten percent (10%) of the amount due, and interest at a rate of ten percent (10%) per annum on unpaid assessments and charges, if allowed by the Covenants.Ħ. Fines constitute a lien against the violator’s lot, and the ability to fine significantly strengthens the association’s powers to enforce the Covenants and the rules and regulations. The POA gives homeowners associations a statutory power to assess fines against violators and to suspend the common area use rights of violators, if allowed in the Covenants. The POA also requires that both owners and tenants must comply with all the provisions of the declaration of Covenants and the association’s rules and regulations. Tenants are Obligated to Comply With Association Regulations
This means that, if the automatic statutory lien is not paid at the closing, the association can proceed against the new owner, who will be personally liable for all amounts owed prior to the closing.ģ. The POA makes buyers and sellers jointly and severally liable for all unpaid assessments. The POA includes another provision that helps strengthen an association’s assessment collection powers. Buyers and Sellers are Jointly and Severally Liable to Pay Assessments The POA makes the lien effective, even if you have incorrect or no information about an owner.Ģ. If the association’s records have an owner’s name misspelled the recorded lien may be ineffective. Recorded liens are only effective if filed under the correct owner names. If the association is not paid out of the proceeds of the sale or refinance, the lien continues against the lot and will generally have priority over subsequent liens and mortgages.Īnother benefit of the POA’s automatic lien is that it protects the association even if the association’s records have incorrect or misspelled owner names. As a result, closing attorneys, title examiners, purchasers or owners must contact the association for a statement of any amounts owed to the association prior to concluding a sale or refinance of the lot, or risk the existence of a lien. The POA provides that the declaration of covenants itself serves as notice that there is a lien on every lot in the community for any unpaid assessment or other charges. Instead, the POA creates an automatic statutory lien against a delinquent owner’s lot for any sums owed to the association. Here are some of the most important advantages of the POA:Īfter submitting to the POA, an association no longer needs to file liens at the county courthouse for unpaid assessments or other charges. The POA provides significant advantages to homeowners associations. In 1994, the Georgia Legislature adopted the Property Owners’ Association Act (“POA”). Why Your Atlanta HOA May Want to Adopt the POA.
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