Delaware Statewide Rule

Delaware HOA Assessments, Liens & Foreclosure (DUCIOA)

Heavy RestrictionsApplies statewide across Delaware (2026)

Key Facts

Governing act: DUCIOA, 25 Del. C. § 81-316
Super-priority: Up to 6 months of common-expense assessments ahead of first mortgage
Default interest: Lesser of 18%/yr or highest rate allowed by law (unless declaration differs)
Foreclosure method: Like a mortgage on real estate; attorney's fees to prevailing party
Fines-only limit: Cannot foreclose for fines alone until a judgment is secured and perfected

Last verified: August 20, 2026

Summary

Under the Delaware Uniform Common Interest Ownership Act, an association has an automatic statutory lien on a unit for unpaid assessments. That lien carries a limited super-priority over the first mortgage and can ultimately be foreclosed in the same manner as a mortgage on real estate.

81-316. Lien for assessments. (a) The association has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner. Unless the declaration otherwise provides, fees, charges, late charges, fines, and interest charged pursuant to § 81-302(a)(10), (11), and (12) of this title, and any other sums due the association under the declaration, this chapter or as a result of an administrative or judicial decision, together with court costs and reasonable attorneys’ fees incurred in attempting collection of the same, are enforceable in the same manner as unpaid assessments under this section. If an assessment is payable in installments, the lien is for the full amount of the assessment from the time the first installment thereof becomes due. Unless the declaration provides for a different rate of interest, interest on unpaid assessments shall accrue at the rate of the lesser of 18% per annum or the highest rate permitted by law.

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Full Breakdown

25 Del. C. § 81-316 gives the association a lien once an assessment becomes due. The lien is generally junior to a first mortgage, but it "shall have priority over the security interests ... for an amount not to exceed the aggregate customary common expense assessment against such unit for 6 months": a true super-priority. Unless the declaration says otherwise, interest accrues at "the lesser of 18% per annum or the highest rate permitted by law." The lien is foreclosed "in like manner as a mortgage on real estate," and the judgment "must include costs and reasonable attorney's fees for the prevailing party." A fines-only lien cannot be foreclosed until the association first secures and perfects a judgment.

Violations & Penalties

Delinquent owners face accruing interest up to 18% per year, late charges, suspension of privileges, court costs, attorney's fees, and ultimately judicial foreclosure of the unit under § 81-316.

Frequently Asked Questions

Can a Delaware HOA foreclose on my home for unpaid dues?

Yes. Under 25 Del. C. § 81-316 the association's assessment lien may be foreclosed in the same manner as a mortgage on real estate, with reasonable notice to lienholders and you.

What is the 6-month super-priority?

The association's lien jumps ahead of the first mortgage for an amount equal to up to six months of customary common-expense assessments, so a foreclosing lender may have to pay that portion.

How much interest can be charged on late assessments?

Unless your declaration provides otherwise, the statute allows interest at the lesser of 18% per year or the highest rate the law permits.

Sources

25 Del. C. § 81-316 (Lien for assessments)

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