Maryland HOA Assessment Liens & Foreclosure

If the declaration provides for a lien, the HOA may record an assessment lien under the Maryland Contract Lien Act after written notice to the owner within 2 years of breach (Real Prop. § 14-203). Real Prop. § 14-204 lets the lien "be enforced and foreclosed... in the same manner, and subject to the same requirements, as the foreclosure of mortgages or deeds of trust." An HOA foreclosure may rest only on delinquent assessments plus limited costs and fees not exceeding the assessments — NOT on fines — and must begin within 12 years of recording. Separately, Real Prop. § 11B-106 requires the seller to disclose current monthly assessments, the prior year's total, and any delinquencies.

Unpaid assessments can become a recorded lien foreclosable like a mortgage (Real Prop. § 14-204). Recoverable costs and attorney's fees may not exceed the delinquent assessments, and fines cannot be the basis for foreclosure.