Homeowners Association Liens

Deed of Trust (DoT)

A Homeowners' Association (HOA), or its assignee, has the right to redeem in the most-senior junior position to the first Deed of Trust (DoT) if all of the following are true:

  • First DoT was recorded after the Declaration of Covenants for the HOA
  • Either the DoT or the Declaration of Covenants was recorded after June 30, 1992
  • There is a positive balance remaining after doing the following:
    • Take the amount of unpaid assessments, with interest, due through the end of the first redemption period
    • Subtract an amount equal to the assessments due (paid or unpaid) in the six months immediately prior to the recording of the NED

Requirements

In order to meet the requirement of C.R.S. 38-38-302(1.f) with respect to "setting forth the amount required to redeem," the Gunnison County Public Trustee requires all of the following to be submitted with any intent to redeem on an HOA assessment:

  • A copy of the first page of the recorded Declaration of Covenants, along with the pages providing for assessments to be levied
  • A notarized affidavit signed by an officer of the HOA that does the following:
    • Links the recorded Declaration of Covenants to the specific DiT
    • Provides the amount of unpaid assessments, with interest, due through the end of the first redemption period
    • Sets forth the amount of assessments due in the six months immediately prior to the recording of the NED
    • Optionally, subtracts "c" from "b" to produce the amount required to redeem
  • A recorded assignment of lien, if applicable

After Verification

Once we have those documents, and have verified that there is a positive balance remaining after subtracting the value of the super-priority lien, we can accept the Intent to Redeem, with a lien amount equal to the balance in the above requirements.

None of these documents need to be recorded other than the original Declaration of Covenants, and any assignment – the specific lien is automatically valid. The HOA lien is always in first position behind the first Deed of Trust, and is senior to any other DoT.