Liens for Past Due Assessments Owed to Texas Condominium Associations

As one would expect, the statutory provisions giving rise to Texas liens regarding assessments owed to a Condominium Association reside within the Texas Uniform Condominium Act, commonly referred to as “TUCA” (or “too-kuh” if spoken aloud). TUCA may be found in Chapter 82 of the Texas Property Code.

Pursuant to Section 82.113 of the Texas Property Code, assessments owed by a unit owner of a Texas condominium are a “personal obligation of the unit owner and [are] secured by a continuing lien on the unit.” Unless the Declaration of the Condominium Association holds otherwise, the lien exists and is “perfected” upon recordation of the Declaration in the real property records in the relevant county and requires no further recording by the Condominium Association. Of course there must be delinquent assessments before one can have an actionable lien capable of being foreclosed upon, but for purposes of determining when a lien came into existence once a Condominium Association is confronted with a delinquent unit owner, the lien relates back to the date upon which the Declaration was filed in the real property records. Because the lien arises for any delinquent assessments subsequent to the filing of the Declaration of the condominium complex, the lien for any particular unit arises with no effort or cost to the Condominium Association, and the Association need not file the lien in the real property records for it to have a valid and subsisting lien. That being said, the act of filing the lien can be useful in alerting others of the existence of a lien, limiting the unit owner’s ability to sell the unit. Filing of the lien in the real property records can also be a useful tool in prompting payment of the assessment, as some unit owners may be loathe to see their name and reputation tarnished in real property records for “all the world to see.”

Section 82.113 of the Texas Property code also states that “[b]y acquiring a unit, a unit owner grants to the [condominium] association a power-of-sale in connection with the association’s lien.” Section 82.113 further confers on a condominium association the power to foreclose on the lien and effectuate the sale by judicial and non-judicial means. However, pursuant to Section 82.113(e), a condominium association may not foreclose when the amounts owed consist solely of fines.

Prepared by Austin Attorney Chloe Love