Glossary
What is a demand letter?
In a closing, the association's statement of the exact amount needed to bring a home current through the closing date. In collections, a letter demanding payment before a lien or suit.
Also called payoff statement, closing demand, payoff demand.
In Havn
Havn prepares the closing demand from the ledger with the proration done, and sends collections letters on a ladder that follows the state's notice rules.
Demand letters and payoff statementsThe same words cover two documents. A closing demand, also called a payoff statement, tells the title company what to collect at closing so the home transfers with nothing owed: the balance, prorated assessments through the closing date, and any fees for the transfer itself. Several states set a deadline for furnishing it and make the figure binding.
A collections demand letter goes to an owner who is behind, states the amount and the date by which it must be paid, and warns of the next step, often a lien or referral to an attorney. State law and the governing documents say how much notice an owner must get before each step.
Which one someone means is usually clear from who is asking: a title company wants the closing demand, a board wants to send the collections kind.
Keep Reading
Guides
- How to Collect Delinquent HOA DuesCollections is a calendar, not a confrontation.
- HOA Transfer Fees: Who Pays and What They CoverThree different charges show up on a closing statement under the association's name.
Laws and Documents
- Demand lettersThe payoff statement a closing needs, drafted from the ledger.
- HOA laws by stateEvery state's association statutes and resale rules on one map.
See how Havn handles it with your own community.
HOA management software with a homeowner portal owners actually use. Resale documents are included; the requester pays for each one.