A voluntary neighborhood association in Georgia that has no recorded declaration of covenants begins collecting mandatory dues from homeowners and threatens to place liens on properties of those who refuse to pay. Which statement correctly describes the legal basis required for an association to impose binding assessments and liens?
Correct Answer
B) Binding assessments and the power to impose liens must be grounded in recorded governing documents—such as a declaration of covenants—that create obligations running with the land.
Under Georgia law, an association's power to levy binding assessments and impose liens must derive from recorded covenants, conditions, and restrictions (CC&Rs) or a declaration that creates obligations running with the land. The Georgia Property Owners' Association Act (O.C.G.A. § 44-3-220 et seq.) contemplates communities established through recorded declarations that grant the association specific powers, including assessment and lien authority. Without such recorded documents, a voluntary association generally cannot compel payment or place enforceable liens on property.
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Previous Question
A Georgia licensee is advising a client who owns property in a community governed by a property owners' association. The client asks whether the same rules apply as in a condominium. Which statement is correct regarding the legal distinction between these community structures?
Next Question
A property manager for a homeowners association receives a question from a homeowner about condominium-specific rules. The manager is unsure whether the community is governed as an HOA under the Georgia Property Owners' Association Act or as a condominium under the Georgia Condominium Act. Which statement best reflects the correct approach under Georgia law?