Alabama Statewide Rule

Alabama HOA Assessments & Liens: Foreclosure Allowed Under Ala. Code § 35-20-12

Some RestrictionsApplies statewide across Alabama (2026)

Key Facts

Lien for unpaid dues: Yes - on each lot under Ala. Code § 35-20-12
Foreclosure: Yes - court-ordered sale after 30 days' notice
Lien recording deadline: Within 12 months of the assessment's due date (probate office)
Late fee / interest rate: Not set by statute - governed by the recorded declaration
Lien priority: Over later liens except taxes, municipal assessments, prior mortgages

Last verified: September 5, 2026

Summary

Under the Alabama Homeowners' Association Act, an association has a lien on each lot for unpaid assessments, plus interest and costs the declaration allows. The lien is recorded in probate within 12 months and may be foreclosed by judicial sale after 30 days' notice. Late-fee and interest amounts come from the declaration, not the statute.

(a) Except as may be otherwise provided in the declaration or the governing documents of an association, an association shall have, and there is declared, a lien on every lot for unpaid assessments levied against that lot arising on and from the date the assessment is due as fixed and determined by the board of directors at an annual meeting after giving notice as provided in Chapter 3 of Title 10A. The lien may be enforced or foreclosed as provided in the declaration or governing documents or as provided in this section. Written notice of the assessment and lien shall be given to the owner of any lot on which the assessment and lien is claimed by personal delivery or first class United States mail, postage prepaid.

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Full Breakdown

Ala. Code § 35-20-12 gives an association a lien on every lot for assessments "levied against that lot," together with interest and costs claimed by the association as the governing documents allow. The association must record a lien statement in the probate office within 12 months of the assessment's due date, and the lien has priority over later liens except taxes, municipal assessments, and prior mortgages. The statute authorizes the association to "bring an action in a court having jurisdiction to enforce a lien," and the court may order a sale of the property after 30 days' advance notice and publication. The Act sets no late-fee percentage or interest rate, so those amounts are governed by the recorded declaration.

Violations & Penalties

An owner who fails to pay assessments faces a recorded lien, accruing interest and collection costs (including attorney fees where the declaration provides), and ultimately judicial foreclosure and sale of the lot under Ala. Code § 35-20-12.

Frequently Asked Questions

Can an Alabama HOA foreclose on my home for unpaid dues?

Yes. Ala. Code § 35-20-12 lets an association record a lien and bring a court action to enforce it, and the court may order the lot sold after at least 30 days' notice and publication. This applies to associations governed by the 2016 Act; older associations rely on the lien and foreclosure terms in their recorded declaration.

Does Alabama law cap HOA late fees or interest on overdue assessments?

No. The Homeowners' Association Act sets no late-fee or interest rate. Those amounts are determined by the association's recorded declaration and governing documents, so check your CC&Rs for the exact charges.

How long does an Alabama HOA have to record an assessment lien?

Within 12 months of the date the assessment became due, the association must record a lien statement in the county probate office, or the lien for that assessment is lost.

Sources

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