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News & Press: Court Cases

HOA Lien Property

Tuesday, November 20, 2018  
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Bear Creek Master Association v. Southern California Investors
Cal.App. 4th Dist, Div. 2 (E066588) 10/19/18

The court held that a homeowner's association assessment lien is not created or perfected until it records, and does not relate back to the recordation of the CC&R's. However, plaintiff's HOA lien was prior to a subsequently recorded 3rd deed of trust because Section 3 of the CC&R's provides that assessment liens "shall have priority over all liens or claims created subsequent to the recordation of this Declaration ... except for certain trust deeds as provided in Section 4 ..." and Section 4 provides that "The lien for the Assessment provided for herein shall not be subordinate to the lien of any deed of trust or mortgage, except the lien of a first deed of trust or first mortgage". Accordingly, a deed of trust that is not in first position is subordinated to a subsequently recorded assessment lien.


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