Collection Notice

A collection notice is the formal written notification that the HOA is escalating an unpaid assessment account to the collections process — which may include referral to a collections attorney, imposition of interest and attorney fees, and eventual lien filing. The collection notice must typically include: the total balance owed (dues, late fees, interest, attorney fees), the deadline to pay or make a payment arrangement, and the consequences of continued non-payment. In California, for example, the Davis-Stirling Act requires a detailed pre-lien notice. Sending a proper collection notice is a legal prerequisite to filing a lien in most states. The notice must be delivered in the legally required manner.

Failure to send a proper collection notice before filing a lien can void the lien and expose the HOA to a fee-shifting award if the owner challenges the collection action. Strict compliance with notice requirements is essential.