Maryland HOA Foreclosure Laws

Maryland HOA foreclosure laws allow a homeowner association to use a lien against a lot to collect certain unpaid assessments and, in qualifying circumstances, pursue foreclosure of that lien. Maryland Real Property §11B-117 authorizes an HOA to enforce assessments and charges through a lien under the Maryland Contract Lien Act. However, an HOA cannot foreclose a lien simply because any type of HOA debt exists. Under Real Property §14-204, foreclosure by an HOA is limited to liens securing delinquent periodic or special assessments, applicable interest, and certain reasonable costs and attorney’s fees; fines and costs associated with collecting fines cannot be included in the amount secured for HOA foreclosure.

Direct Answer: Yes. A Maryland HOA can potentially foreclose on a lot because of qualifying unpaid assessments, but the foreclosure is subject to Maryland’s Contract Lien Act and foreclosure procedures. The lien generally must be properly established and recorded, and the foreclosure amount cannot include HOA fines or attorney’s fees and costs related to collecting those fines.

What Is an HOA Foreclosure Lien?

An HOA foreclosure lien is a legal claim against a homeowner’s lot arising from qualifying amounts owed to the homeowner association. Maryland law allows an HOA to enforce assessments through a lien under the Maryland Contract Lien Act, and a qualifying lien may ultimately be foreclosed using Maryland’s foreclosure procedures.

The important distinction is that an HOA lien and an HOA foreclosure are not the same thing. A lien secures the association’s claim against the property. Foreclosure is the legal enforcement process through which the lienholder may seek a sale of the property to satisfy the secured debt.

How Do Maryland HOA Foreclosure Laws Work?

Maryland’s HOA foreclosure system is primarily based on two connected statutes:

1. Maryland Homeowners Association Act — Real Property §11B-117
2. Maryland Contract Lien Act — Real Property §§14-201 through 14-204

Under §11B-117, a lot owner is liable for HOA assessments and charges that become due while the owner owns the lot, when provided for by the declaration. The HOA may enforce those assessments by imposing a lien in accordance with the Maryland Contract Lien Act.

The Contract Lien Act establishes requirements for creating, contesting, recording, and enforcing that lien. Section 14-204 then provides the foreclosure framework.

This means an HOA generally cannot skip directly from an unpaid bill to selling a homeowner’s property. The association must have a legally enforceable lien and comply with the applicable statutory and foreclosure procedures.

Can an HOA Foreclose on a Home in Maryland?

Yes, a Maryland homeowners association can potentially foreclose on a lot for qualifying unpaid assessments.

Section 14-204 specifically recognizes a governing body’s ability to foreclose a lien against a lot owner in a homeowner association. However, the statute places an important limitation on what the lien can contain when the HOA seeks foreclosure.

The damages secured by the lien must consist of:

• Delinquent periodic assessments or special assessments
• Interest on those assessments
• Reasonable costs and attorney’s fees directly related to filing the lien
• Attorney’s fees and costs related to the lien only up to the amount of delinquent assessments, excluding interest

The lien may not include:

• HOA fines
• Attorney’s fees associated with recovering HOA fines
• Costs associated with recovering HOA fines

This distinction is one of the most important points in Maryland HOA foreclosure law. An HOA may have other legal remedies for collecting fines, but fines cannot be included in the amount secured for an HOA foreclosure under §14-204(d).

What Can an HOA Lien Include in Maryland?

Maryland’s Contract Lien Act provides a broader framework for HOA liens, while §14-204 establishes additional restrictions when an HOA seeks foreclosure.

Amount or Charge	Can Be Secured by HOA Lien?	Can Be Included for HOA Foreclosure?
Delinquent regular assessments	Generally, yes	Yes
Delinquent special assessments	Generally, yes	Yes
Interest on qualifying assessments	Generally, yes	Yes
Reasonable lien-filing costs	Potentially	Yes, subject to statutory limit
Reasonable attorney’s fees directly related to filing the lien	Potentially	Yes, subject to statutory limit
HOA fines	Potentially subject to applicable law and documents	No
Attorney’s fees for collecting HOA fines	Potentially subject to applicable law	No
Punitive or consequential damages	No under MCLA	No

The Maryland Contract Lien Act defines damages generally as unpaid sums due under a contract plus applicable interest, while excluding consequential and punitive damages. Section 14-204 creates the more specific foreclosure restriction applicable to common ownership communities such as HOAs.

What Is the Maryland Contract Lien Act?

The Maryland Contract Lien Act (MCLA) is the statutory framework that governs certain property liens arising from recorded contracts or covenants. For an HOA, the recorded governing documents can provide the contractual basis for imposing a lien when the statutory requirements are satisfied.

Under §14-202, a lien may be created and enforced under the Act when the contract expressly provides for a lien and identifies both the party entitled to enforce it and the property against which the lien may be imposed.

For homeowners, this is important because the association’s governing documents and the statutory lien procedure work together. The HOA’s declaration, bylaws, and other recorded documents should be reviewed before assuming that every charge claimed by an association is automatically enforceable through a property lien.

What Notice Must a Maryland HOA Give Before Creating a Lien?

Maryland law provides a formal notice procedure before a contract lien is established.

Under §14-203, a party seeking to create a lien because of a breach of contract generally must give written notice within two years of the breach. The notice must be served using the methods specified by the statute, including certified or registered mail or personal delivery in the circumstances described by law.

The notice is important because it gives the property owner an opportunity to challenge the proposed lien.

A statutory notice generally identifies matters such as:

• The party seeking the lien
• The property involved
• The contract supporting the lien
• The alleged breach
• The amount of damages
• The homeowner’s right to challenge the lien

Maryland courts have recognized that the Contract Lien Act gives property owners a specific procedure for contesting a proposed lien before it becomes established.

Can a Homeowner Challenge an HOA Lien?

Yes. Maryland law gives a property owner a specific opportunity to challenge the establishment of a lien.

Under Real Property §14-203(c), a party receiving the statutory notice may file a complaint in the circuit court for the county where any part of the property is located within 30 days after the notice is served. The complaint asks the court to determine whether probable cause exists for establishment of the lien.

If the homeowner files the statutory challenge, the party seeking the lien has the burden of proof.

What Should a Homeowner Do After Receiving a Lien Notice?

If you receive a notice that an HOA intends to establish a lien, consider taking these steps promptly:

1. Read the notice carefully. Identify the amount claimed and the reason for the lien.
2. Review your HOA declaration and bylaws. Confirm what assessments and charges are authorized.
3. Request an itemized account. Separate assessments, interest, fees, fines, and collection costs.
4. Check payment records. Compare the HOA’s claimed balance with bank statements, receipts, and prior correspondence.
5. Check the statutory deadline. The MCLA provides a 30-day period to file the specified court challenge after service of the notice.
6. Consult a Maryland attorney if the lien is disputed or foreclosure is threatened.

The 30-day deadline is particularly important. Missing a statutory deadline can affect the homeowner’s ability to challenge the establishment of the lien through that procedure.

How Long Does a Maryland HOA Have to Foreclose a Lien?

Under Maryland Real Property §14-204(c), an action to foreclose a lien must be brought within 12 years after the statement of lien is recorded.

This does not mean that a homeowner should assume an HOA will wait years before taking an action. A foreclosure action can arise much sooner depending on the association’s collection practices, the governing documents, the amount owed, and the circumstances of the case.

The 12-year period is a statutory outer limitation for bringing the foreclosure action under §14-204(c); it is not a recommended payment window for homeowners.

What Happens After an HOA Decides to Foreclose?

Once a qualifying HOA lien is established and the association pursues foreclosure, the process follows Maryland’s foreclosure framework.

Section 14-204(a) provides that, subject to the special restrictions applicable to common ownership communities, a lien may be enforced and foreclosed in the same manner and subject to the same requirements as a mortgage or deed of trust containing a power of sale or assent to a decree.

The foreclosure process can involve:

1. Establishment and recording of the lien
2. Initiation of the foreclosure proceeding
3. Required notices to interested parties
4. Advertising or other statutory sale requirements
5. A foreclosure sale
6. Filing of the report of sale
7. Potential objections or exceptions
8. Court ratification of the sale
9. Distribution of sale proceeds

Maryland courts explain that foreclosure sales involve required notices and court procedures, and that the sale is not necessarily the end of the process because the court must address the report and ratification.

Because foreclosure procedures can vary depending on the type of lien and property, homeowners should not rely on a generic foreclosure timeline when a specific case is already pending.

Does an HOA Lien Have Priority Over a Mortgage in Maryland?

This is a separate issue from whether an HOA can foreclose.

Maryland Real Property §11B-117 provides a limited priority for certain HOA liens in a foreclosure of a mortgage or deed of trust. For qualifying first mortgages or deeds of trust recorded on or after October 1, 2011, the priority portion is limited to up to four months of unpaid regular assessments for common expenses, and it cannot exceed $1,200.

The priority portion does not include:

• Interest
• Collection costs
• Late charges
• Fines
• Attorney’s fees
• Special assessments
• Other amounts due under the declaration, contract, law, or court order

This limited priority should not be confused with the HOA’s overall lien amount or with the question of whether the HOA can foreclose.

HOA Lien Priority at a Glance

Issue	Maryland Rule
HOA may impose a lien	Yes, when authorized and statutory requirements are satisfied
HOA lien may be foreclosed	Yes, subject to §14-204
Priority over certain first mortgages	Limited statutory priority
Maximum priority portion	$1,200
Regular assessments included in priority	Up to 4 months
Fines included in priority	No
Special assessments included in priority	No
Attorney’s fees included in priority	No

The statutory priority rules can become especially important during a mortgage foreclosure or property sale because different liens can have different priority positions.

Can an HOA Foreclose for Unpaid Fines in Maryland?

Not through the HOA foreclosure authority described in Real Property §14-204(d).

Maryland law expressly states that an HOA governing body may foreclose a lien only when the damages secured by that lien meet the statutory requirements. The foreclosure amount cannot include fines imposed by the governing body or attorney’s fees and costs related to recovering those fines.

That does not necessarily mean an HOA has no remedy for an unpaid fine. Section 14-204(d)(3) states that the foreclosure restriction does not prevent a governing body from using another means to enforce a lien. The available remedy depends on the governing documents and applicable law.

For that reason, homeowners should distinguish between an assessment delinquency and a fine dispute rather than treating every HOA balance as one category of debt.

What If the HOA Claims the Wrong Amount?

An incorrect balance can become especially serious when the association is attempting to establish or enforce a lien.

A homeowner should request an accounting that separates:

• Original assessments
• Special assessments
• Interest
• Late charges
• Collection costs
• Attorney’s fees
• Fines
• Payments and credits

The homeowner should then compare that accounting with the association’s declaration, bylaws, payment history, and applicable Maryland statutes.

This is particularly important because Maryland law places specific limits on the damages that may support HOA lien foreclosure. An association’s total account balance is not automatically the same as the amount that may legally support foreclosure.

What Should You Do If Your Maryland HOA Threatens Foreclosure?

If an HOA has threatened foreclosure, delaying action can make the situation more difficult. A practical response is to work through the issue in a documented sequence.

Step 1: Request the Complete Account

Ask for an itemized statement showing exactly how the association calculated the balance.

Step 2: Review the Governing Documents

Locate the provisions covering:

• Regular assessments
• Special assessments
• Late charges
• Interest
• Collection procedures
• Liens
• Attorney’s fees
• Fines

Step 3: Check the Lien Notice

Determine whether the notice identifies the property, alleged breach, claimed damages, and statutory information required for the lien process.

Step 4: Check Your Deadlines

If you received a Maryland Contract Lien Act notice, pay particular attention to the 30-day period for challenging establishment of the lien under §14-203(c).

Step 5: Gather Your Evidence

Keep copies of:

• Payment receipts
• Bank records
• HOA statements
• Emails
• Letters
• Certified-mail records
• Governing documents
• Previous settlement agreements
• Notices of violations or fines

Step 6: Get Legal Advice if Foreclosure Is Imminent

A Maryland real-estate or HOA attorney can review the lien, foreclosure documents, account balance, priority issues, and available defenses.

Does Maryland Give Homeowners Additional HOA Consumer Protection?

Yes. Maryland expanded the enforcement authority of the Attorney General’s Consumer Protection Division over violations of the Maryland Homeowners Association Act through legislation enacted in 2025. Senate Bill 758, Chapter 512, became effective October 1, 2025, and provides that violations of the Maryland Homeowners Association Act fall within the enforcement duties and powers of the Consumer Protection Division.

The Maryland Attorney General’s Office also accepts complaints involving condo and HOA issues. Its Consumer Protection Division provides mediation services and maintains information about consumer complaints.

However, an administrative complaint is not a substitute for protecting a homeowner’s rights in a court foreclosure or for meeting a statutory deadline. If a foreclosure case or lien challenge is already underway, homeowners should address the court process directly.

Maryland HOA Foreclosure Laws: Key Takeaways

The most important rules can be summarized simply:

• Maryland HOAs can enforce qualifying assessments through property liens.
• HOA foreclosure is governed by the Maryland Contract Lien Act and related foreclosure rules.
• An HOA foreclosure lien may include qualifying delinquent assessments and interest.
• Certain reasonable lien-related costs and attorney’s fees may be included, subject to statutory limits.
• HOA fines cannot be included in the damages secured for an HOA foreclosure under §14-204(d).
• Homeowners generally have 30 days after service of the statutory lien notice to file the specified challenge to establishment of the lien.
• A foreclosure action under §14-204 must generally be brought within 12 years after recording the statement of lien.
• Certain HOA lien priority over qualifying first mortgages is limited to up to four months of regular assessments and a maximum of $1,200.
• Maryland’s Attorney General Consumer Protection Division has enforcement authority over violations of the Maryland Homeowners Association Act.

Frequently Asked Questions About Maryland HOA Foreclosure Laws