Under Utah Code §57-8a-301, a Salt Lake County HOA automatically holds a lien on a lot for unpaid assessments, late fees, interest, court costs, reasonable attorney fees, and certain fines. The recorded declaration itself perfects the lien. Interest accrues at the statutory rate of 10% per year (Utah Code §15-1-1(2)) unless the declaration sets a different rate. The HOA may foreclose nonjudicially (after at least 30 days' written notice of intent and the owner's right to demand judicial foreclosure) under §57-8a-302/-303, or sue for a money judgment under §57-8a-307.
Utah Code §57-8a-201 requires owners to pay assessments levied by the association. If unpaid, §57-8a-301 creates an automatic lien for the unpaid amount plus court costs, reasonable attorney fees, late charges, interest, and (where governing documents authorize) unpaid fines. The recording of the declaration constitutes record notice and perfection of the lien — no separate lien filing is required, although associations often record a Notice of Lien. Interest accrues at 10% per annum under Utah Code §15-1-1(2) unless the governing documents set another rate. The lien has priority over later-recorded interests but is subordinate to (a) liens recorded before the declaration, (b) first and second mortgages or deeds of trust recorded before the association's lien notice, and (c) real property tax liens. To foreclose nonjudicially under §57-8a-302/-303, the association must deliver written notice to the owner at least 30 days before initiating foreclosure, advising the owner of the right to demand judicial foreclosure. Alternatively, under §57-8a-307, the association may sue for a personal money judgment without waiving the lien and collect through garnishment or execution. Owners can demand a written statement of unpaid assessments under §57-8a-206 — useful at closing for Salt Lake City, West Valley, West Jordan, Sandy, and Murray sales.
Unpaid assessments accrue interest, late fees, and collection costs, and may result in nonjudicial or judicial foreclosure of the lot. However, an association that forecloses without giving 30 days' written notice of intent and right to demand judicial foreclosure (§57-8a-302/-303) acts unlawfully. Owners can demand a §57-8a-206 statement of unpaid assessment and dispute amounts. Improperly assessed fines included in a lien can be challenged under §57-8a-208.
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