2.8.1 Lien for Assessments

• Jurisdiction: Arizona

§ 2.8.1 Lien for Assessments

Planned community associations have a statutory lien on each unit to secure the common expense obligation. A.R.S. § 33-1807 addresses the statutory “lien” for assessments. Put simply, the association has a lien on a unit for any assessment levied against that unit from the time the assessment becomes due. The association’s lien for assessments, charges for late payment of those assessments, reasonable collection fees, and for reasonable attorneys’ fees and costs incurred with respect to those assessments, may be foreclosed in the same manner as a mortgage on real estate, but may be foreclosed only if the owner has been delinquent in the payment of monies secured by the lien, excluding reasonable collection fees, reasonable attorneys’ fees, and charges for late payment of and costs incurred with respect to those assessments, for a period of one year or in the amount of $1,200 or more, whichever occurs first.

Foreclosing on the planned community association’s assessment lien requires a full judicial foreclosure. The statutory assessment lien does not include fees, charges, late charges, monetary penalties and interest charged pursuant to A.R.S. § 33-1803 other than charges for the late payment of assessments. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment of the assessment comes due.

With respect to fees, charges, late charges monetary penalties and interest charged pursuant to A.R.S. § 33-1803 other than charges for the late payment of assessments, a planned community association does not have an automatic statutory lien under the planned community statutes for those charges. A planned community association must first file suit against the unit owner for those charges, obtain a judicial judgment, and record that judgment with the county recorder. After recording the judgment...