Missouri Real Estate Lawyer

Missouri homeowner association liens are governed by the association’s indentures. Homeowners association indentures are private contracts, in which each lot owner is a party. Unlike condominium associations, no Missouri statute provides rules for homeowner associations. Therefore, whether a homeowners association can assert a lien depends on what the indentures say. While many homeowners associations allow for liens, when a right to lien arises, how it arises, and how it is enforced varies by homeowners association. Therefore, special attention must be paid to what the indentures say about homeowner association liens and the procedure that must be followed for a lien to attach to the property. Likewise, whether, and how, a lot may be sold pursuant to a lien is determined by the indentures.

Assessment Liens

Most Missouri homeowners association liens arise because a lot owner failed to pay an assessment. But whether an assessment is owed depends on whether the vote for the assessment was proper. The indentures usually provide the procedure for taking such a vote. And the process typically starts with the trustees sending to the lot owners a notice of the proposed assessment and the date, time, and place of the meeting where lot owners can vote on the assessment. The indentures might require such notices to be sent to each lot owner by the U.S. Postal Service and by posting on the front door of the home. The indentures also likely provide for the number of lot owners that must be at the meeting for a quorum and the percentage of lot owners present who must vote in favor of the assessment. A lot owner could challenge the requirement to pay an assessment, and thereby the validity of a lien, if any of such procedures required by the indentures are not followed.

Levy of an Association Lien

The procedures provided in the indentures for attaching Missouri homeowners association liens to a lot must likewise be followed. Many indentures require a lien to be recorded. In one Missouri court case, a judge held that an association could not enforce a lien because the indentures required the lien to be recorded, and the association had not recorded the lien.[1] In another case, the indentures did not require recording of the lien, and the judge held that recording of the indentures was sufficient to enforce the lien.[2]

As such, trustees should pay close attention to the language of the indentures whenever they take any action on behalf of the association.

This article is for general informational purposes only. It is not intended as legal advice.

Sewell Law provides real estate and business law services. Please contact Michael Sewell at (314) 942-3232 or at michael@sewelllaw.net to discuss your legal matters.

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[1] Jamestowne Homeowners Ass’n Trs. v. Jackson, 417 S.W.3d 348, 356 (Mo. App. 2013).

[2] Kuehnle v. Gray, 865 S.W.2d 439, 440-441 (Mo. App. E.D. 1993).