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ASSESSMENTS & FORECLOSURES

This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. In addition to the information provided herein, you have the right to consult a lawyer if you dispute an assessment.

ASSESSMENTS AND NON-JUDICIAL FORECLOSURE

Assessments become delinquent fifteen (15) days after they are due, unless the governing documents of the association provide for a longer time. (Civil Code Sections 1366 and 1367.1)

The failure to pay association assessments may result in the loss of an owner's property without court action, often referred to a non-judicial foreclosure. When using non-judicial foreclosure, the Association records a lien on the owner's property. The owner's property may be sold to satisfy the lien if the lien is not paid.

The Association must comply with the requirements of §1367.1 of the Civil Code when collecting delinquent assessments. If the Association fails to follow these requirements, it may not record a lien on the owner's property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the Association. (Civil Code Section 1367.1)

In a non-judicial foreclosure action, in addition to the recovery of the unpaid assessment(s), the Association may also recover reasonable costs of collection, reasonable attorney's fees, late charges, and interest. The Association may not use non-judicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member's guests, if the governing documents provide for this. (Civil Code Sections 1366 and 1367.1)

At least 30 days prior to recording a lien on an owner's separate interest, the Association must provide the owner of record with certain documents by certified mail. Among these documents, the Association must send a description of its Collection and Lien Enforcement Procedures and the method of calculating the amount. The Association must also provide an itemized statement of the delinquent charges owed by the owner. An owner has a right to review the association's records to verify the debt. (Civil Code Section 1367.1)

If the Association records a lien against an owner's property in error, the Association is required to record a lien Release within 21 days, and provide the owner certain documents in this regard. (Civil Code Section 1367.1)

The preceding notice regarding assessments & non-judicial foreclosure is provided by the Association as mandated by and in compliance with CA Civil Code Section 1365.1 et seq. which further requires annual distribution of this notice during the 60-day period immediately preceding the beginning of the Association's fiscal year. The Association encourages owners to review the statute in its entirety.

Board of Directors

Association

Fiscal Year 2013