North Carolina Statewide Rule

North Carolina HOA Assessments, Liens & Foreclosure (G.S. 47F-3-116)

Heavy RestrictionsApplies statewide across North Carolina (2026)

Key Facts

Governing law: G.S. 47F-3-116 (NC Planned Community Act)
Lien triggers: Assessment unpaid 30 days or longer
Foreclosure threshold: Unpaid 90 days or more, board vote required
Foreclosure type: Nonjudicial power of sale OR judicial
Fee cap (uncontested): Attorney fees + trustee commission ≤ $1,200

Last verified: September 5, 2026

Summary

Under the North Carolina Planned Community Act, G.S. 47F-3-116, any assessment unpaid for 30 days or longer becomes a lien on the lot. If unpaid for 90 days or more, the association may foreclose the claim of lien either by nonjudicial power of sale, like a deed of trust, or by judicial foreclosure.

(a) Any assessment attributable to a lot which remains unpaid for a period of 30 days or longer shall constitute a lien on that lot when a claim of lien is filed of record in the office of the clerk of superior court of the county in which the lot is located in the manner provided in this section. Once filed, a claim of lien secures all sums due the association through the date filed and any sums due to the association thereafter. Unless the declaration provides otherwise, fees, charges, late charges, and other charges imposed pursuant to G.S. 47F-3-102, 47F-3-107, 47F-3-107.1, and 47F-3-115 are subject to the claim of lien under this section as well as any other sums due and payable to the association under the declaration, the provisions of this Chapter, or as the result of an arbitration, mediation, or judicial decision.

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Full Breakdown

G.S. 47F-3-116(a) provides that "any assessment attributable to a lot which remains unpaid for a period of 30 days or longer shall constitute a lien." Subsection (f) lets the association, after its executive board votes to foreclose a specific lot, "foreclose a claim of lien in like manner as a mortgage or deed of trust" under power of sale (Chapter 45, Article 2A) once the assessment is unpaid 90 days or more; subsection (g) preserves the option of judicial foreclosure. In an uncontested foreclosure, attorneys' fees and the trustee's commission "collectively charged to the lot owner shall not exceed one thousand two hundred dollars ($1,200)." An owner may stop the sale by paying the debt and costs before the upset-bid period expires.

Violations & Penalties

No flat statutory penalty: the owner owes the unpaid assessments, interest, late charges, costs, and capped attorney/trustee fees. The lien can be foreclosed nonjudicially after 90 days, leading to loss of the home at a power-of-sale or judicial sale.

Frequently Asked Questions

Can a North Carolina HOA foreclose on my home for unpaid dues?

Yes. Under G.S. 47F-3-116, once an assessment is unpaid for 90 days or more and the executive board votes to proceed, the association may foreclose its claim of lien by nonjudicial power of sale like a deed of trust, or pursue judicial foreclosure instead.

How long before unpaid HOA dues become a lien in North Carolina?

G.S. 47F-3-116(a) makes any assessment that remains unpaid for 30 days or longer a lien on the lot. Foreclosure of that lien, however, cannot begin until the assessment has been unpaid for 90 days or more.

Is there a cap on HOA attorney fees in a North Carolina foreclosure?

Yes, in an uncontested foreclosure. G.S. 47F-3-116(f) caps attorneys' fees and the trustee's commission collectively charged to the owner at $1,200, not including costs or expenses. The cap does not apply if the owner contests the debt or the lien's validity.

Sources

G.S. 47F-3-116 — Lien for sums due the association; enforcement

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