![]() This means the association has the right to obtain an order from the court allowing the association to foreclose on its lien without first paying off all superior liens. Judicial Foreclosure – The POA allows an association to judicially foreclose on its liens for assessments or other charges over $2,000. Therefore, if an association’s automatic statutory lien is not paid at closing, the association can proceed against the new owner, who will be personally liable for all amounts owed prior to the closing. Joint and Several Liability to Pay Assessments – The POA provides that, unless the declaration of covenants states otherwise, the buyer of a lot is jointly and severally liable with the seller for all unpaid assessments. Late Fees and Interest – Submission to the POA allows an association to charge a late fee of the greater of $10.00 or 10% of the amount due, and interest at a rate of 10% per annum on unpaid assessments and other charges. Without including this specific language in the association’s governing documents, some courts improperly reduce the attorneys’ fees awarded to the association, thereby leaving the association with a legal bill to pay. Increased Collection Authority, including:Īttorneys’ Fees and Costs of Collection – The POA authorizes the recovery of the association’s costs of collection of any delinquent assessments and other charges, including reasonable attorneys’ fees actually incurred.The declaration of covenants itself serves as notice to the world that there is a lien for any unpaid assessments or other charges. Instead, the POA creates an automatic statutory lien against a delinquent owner’s lot. Primary Benefits of the Georgia Property Owners’ Association Act Include: Īfter submitting to the POA, the association is not required to file liens at the county courthouse for unpaid assessments. Watch this short video from our YouTube channel to see the top five reasons why associations should switch from an HOA to a POA. ![]() Therefore, most communities are left having to amend their legal documents to submit to the POA. The developers of most communities do not submit their communities to the POA, despite the benefits the POA would offer the community. The “opt in” process generally takes place either: (i) by the developer when the developer initially creates the declaration of covenants for the community or (ii) by the members of the association through an amendment to the existing declaration. Instead, the POA only applies to communities which “opt in” and choose to adopt the POA. It does not apply automatically to all homeowner associations. The Property Owners’ Association Act is a VOLUNTARY law. The primary purpose of the POA is to strengthen HOA collection powers. ![]() The POA was created to define the power and authority of homeowner associations, similar to those laws governing condominium associations. Lazega & Johanson attorneys lead the drafting and adoption of the POA. The Georgia Property Owners’ Association Act (POA) is a Georgia law adopted in 1994, specifically for homeowner associations.
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