Note The library cannot tell you what the law means for your situation.
A property owners' association may have the right to a lien on a property. In some cases, an HOA can foreclose on property when the owner has fallen behind on paying fees.
The law and the association's governing documents will set out the proper procedure. This includes any required notices to the owner.
Our Property Owners' Association guide discusses assessments or fees that HOAs can charge and foreclose on.
As a last resort, a property owners' association may place an assessment lien on the property. A lien secures the payment of debt when a property gets sold. The association can then force the sale of the property and collect the money owed by the homeowner.
Texas law does not automatically grant associations the power to create assessment liens. This authority must be specifically stated in the association's governing documents. The documents should also state what kinds of debts a lien may secure: overdue assessments, fines, interest, attorneys' fees, etc.
Before filing a lien in the county's official public records, an association must send the owner two notices.
The notice requirements can be found in Section 209.0094 of the Texas Property Code. They took effect September 1, 2023.
In 2001, foreclosure proceedings against an 82-year-old widow Wenonah Blevins made headlines. The homeowner was not informed about the upcoming foreclosure, and her house was sold at auction without her knowledge. To protect homeowners from improper foreclosures by property owners' associations, Texas Legislature passed the Texas Residential Property Owners Protection Act, also known as the Wenonah Blevins Residential Property Owners Protection Act.
Property owners' associations with a right to foreclose on a lien may use the judicial foreclosure process. It involves filing a lawsuit against the property owner in a district court or a county court where the property is located. This will be based on the amount of money owed. If the court rules in favor of the association, the court will order a sheriff or a constable to seize and sell the property in a public auction according to Rule 309 of Texas Rules of Civil Procedure. Any money owed to the association will be taken from the sale proceeds.
To learn more about the foreclosure process in Texas, see our Foreclosure guide.
Some property owners' associations have the right to foreclose using nonjudicial foreclosure. The governing documents must grant the association a "power of sale" or the right to foreclose if the association wants to use this option.
In nonjudicial foreclosure (or "expedited foreclosure"), the property is sold at public auction by a representative ("trustee") appointed by the association. The court does not order the sale nor oversee the sale process. However, the association must still obtain an expedited court order that lets them proceed with the foreclosure, unless the property owner waives this requirement in writing. This process is sometimes called a "Rule 736 proceeding," in reference to the Texas Rules of Civil Procedure.
Unlike subdivision property owners' associations, all condominium owners' associations have the right to nonjudicial foreclosure. It is granted by Section 82.113 of the Texas Property Code.
The property owner and an occupant of the property must be given notice that an application for expedited foreclosure has been filed. The owner has the right to file a response with the court to contest the application and request a hearing. These rights are listed in Rule 736 of the Texas Rules of Civil Procedure.
If the owner does not file a response, the court will issue an order without a hearing.
To learn more about the foreclosure process in Texas, check out our Foreclosure guide.
Note The library cannot tell you what the law means for your situation.