Vermont Statewide Rule

Vermont Common Interest Ownership Act Assessment Liens & Foreclosure

Heavy RestrictionsApplies statewide across Vermont (2026)

Key Facts

Governing statute: 27A V.S.A. § 3-116 (Lien for sums due)
First-mortgage priority: 6-month super-priority for regular assessments
Foreclosure threshold: Owner must owe 3+ months of dues
Pre-foreclosure steps: Payment plan offered; board vote required
Lien limitation period: 3 years to enforce

Last verified: September 5, 2026

Summary

Vermont's Common Interest Ownership Act (27A V.S.A. Title 27A) gives associations an automatic lien for unpaid assessments and fines under 27A V.S.A. § 3-116, with a six-month super-priority over first mortgages. The lien is foreclosable, but only after preconditions and a board vote.

(a) Until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments shall be made at least annually, based on a budget adopted at least annually by the association.

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Full Breakdown

Under 27A V.S.A. § 3-116, an association has a statutory lien on a unit for any assessment or fine from the time it becomes due. The lien is "prior to all security interests" (including a first mortgage) "to the extent of the common expense assessments...that would have become due...during the six months immediately preceding institution of an action to enforce the lien": the six-month super-priority. Before foreclosing, the owner must owe "at least three months of common expense assessments," must have "failed to accept or comply with a payment plan," and "the executive board votes to commence a foreclosure action specifically against that unit." The lien is extinguished unless enforced within three years.

Violations & Penalties

Unpaid assessments accrue a foreclosable lien under 27A V.S.A. § 3-116, with up to six months of regular dues prioritized over a first mortgage. Recovery may add late charges, interest, costs, and fees; the lien expires after three years unenforced.

Frequently Asked Questions

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

Yes. Under 27A V.S.A. § 3-116 the association's assessment lien is foreclosable, but only if you owe at least three months of assessments, have failed to accept or comply with a payment plan, and the executive board votes to foreclose specifically against your unit.

Does a Vermont association's lien beat my mortgage?

Partly. Section 3-116 gives the association a six-month super-priority: up to six months of regular common-expense assessments due before the enforcement action are paid ahead of a first mortgage. The rest of the lien stays junior to the mortgage.

How long does a Vermont assessment lien last?

The lien is extinguished unless proceedings to enforce it are instituted within three years after the full amount of the assessment becomes due (27A V.S.A. § 3-116).

Sources

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