Start with the documents
The declaration and the state act set the grace period, the late fee or interest the association may charge, the notices required before a lien, and the lien itself. A collection policy adopted by the board and sent to every owner turns those rules into a schedule and makes every step defensible because it was applied the same way to everyone.
The ladder
A typical schedule, adjusted to the days the documents and the state set.
| Day | Step | Channel |
|---|---|---|
| Due date | Assessment due; autopay runs | Receipt |
| Day 10 to 15 | Grace period ends; late fee posts if the documents allow | Email and text reminder |
| Day 30 | Late notice: the balance, the fee, how to pay | Email and letter |
| Day 45 to 60 | Demand: pay in full or a payment plan by a date, or the lien follows | Email and certified mail |
| Day 60 to 90 | Pre-lien notice, where the state requires one before recording | Certified mail |
| After notice period | Lien recorded; account referred to counsel or a collection agency | Letter |
Payment plans
Offer one in the demand, in writing, with a term the board has approved in the policy: the arrears over six to twelve months beside the current assessment, late fees waived if the plan is kept. Most owners who are behind can pay something, and a plan signed at day 45 is worth more than a lien at day 90. Record the plan on the ledger and let it run on autopay.
The lien
In most states the assessment lien exists by statute from the day the charge is due; recording a notice of lien makes it public and puts the title company on notice at a sale. Some states require a specific notice to the owner a set number of days before recording. A recorded lien is usually paid at the next sale or refinance; the super lien states give part of it priority over the first mortgage, which is why lenders pay attention.
When to hand off
Refer to counsel when the balance passes the threshold in the policy, when the owner disputes the debt in writing, or when a foreclosure or bankruptcy is on the table. Keep the collection file complete: every notice, the date and channel it went by, and proof of mailing. The file is the case.
What not to do
Do not deny an owner services the documents guarantee, such as access to records or the right to vote, unless the documents and the state allow it for delinquency. Do not post names. Do not vary the schedule for the owner who complains loudest. Consistency is the defense.