Can a South Carolina HOA Foreclose Over Unpaid Dues?

South Carolina draws a sharp line between planned-community HOAs and condominiums when it comes to assessment liens. The right answer depends on which type of community you live in. For your specific situation, a licensed South Carolina attorney is the right resource, especially when your home is on the line. This is general information, not legal advice.

Planned-community HOAs: the lien is contractual

The South Carolina HOA Act (§§ 27-30-110 to 27-30-170) does not create a statutory assessment lien for planned-community HOAs. If your association can place a lien on your property for unpaid dues, that power comes from the recorded declaration — the contract that runs with the land. Reading the declaration to see whether it creates a lien, on what terms, and what procedures it requires is the essential first step. A declaration that doesn't create a lien doesn't give the association lien rights, regardless of what the board claims.

Can a South Carolina condo association put a lien on my unit?

Yes. Under South Carolina's Horizontal Property Act, S.C. Code Title 27, Chapter 31, § 27-31-210, unpaid common-expense assessments are a lien on the condo apartment (unit). The lien may be foreclosed by suit like a mortgage of real property, and the association may also sue for a money judgment without foreclosing.

Condominium owners face a different landscape. Section 27-31-210 of the Horizontal Property Act provides that unpaid common-expense assessments "shall constitute a lien on such apartment prior to all other liens except only (i) tax liens on the apartment in favor of any assessing unit, and (ii) mortgage and other liens, duly recorded, encumbering the apartment." That lien is forecloseable "by suit ... in like manner as a mortgage of real property." By its terms, the lien sits behind tax liens and any duly recorded mortgage or other lien, but ahead of other liens — which still makes prompt attention to disputed condo assessments important. The same section also allows the association to sue for the money without foreclosing: "Suit to recover a money judgment for unpaid common expenses may be maintainable without instituting foreclosure proceedings."

Does a South Carolina HOA need a court order to foreclose?

Generally, yes. South Carolina is a judicial-foreclosure state. Under S.C. Code Title 29, Chapter 3, § 29-3-630, a sale under a power of sale passes title only if a court judgment first establishes the debt, or the debtor consents in writing after it matures. Condo liens are foreclosed by suit (§ 27-31-210); any planned-community HOA lien comes from the declaration.

South Carolina is a judicial-foreclosure state. Under S.C. Code § 29-3-630, a sale under a power of sale in a mortgage or other security instrument is not valid to pass title "unless the debt for which the security is given shall be first established by the judgment of some court of competent jurisdiction" — or unless the debtor consents to the amount in writing after the debt matures. For condominium liens, § 27-31-210 itself provides for foreclosure "by suit." The process runs through the courts, providing a formal opportunity to contest the amount or validity of the lien. South Carolina also provides homeowners statutory rights in the foreclosure process — for example, a defendant against whom a personal judgment is taken or asked may apply for an order of appraisal within thirty days after the sale (§ 29-3-680(A)) — that a licensed attorney can explain.

How long the association has to sue

South Carolina's general limitations statute sets an outer window on collection actions. Under S.C. Code § 15-3-530, an action "upon a contract, obligation, or liability, express or implied" must be brought within three years. Because a planned-community assessment obligation generally arises from the recorded declaration — a contract — that three-year period is the kind of limit that can become relevant when an association pursues older, accumulated balances. But § 15-3-530(1) excepts the actions covered by § 15-3-520, which sets twenty years for, among others, "an action upon a sealed instrument" (other than a sealed note and personal bond for the payment of money only). Which period applies can therefore turn on the instrument and how a claim is framed, so how the deadline counts in a specific case is a question for a licensed South Carolina attorney.

What owners in South Carolina generally do

• Reading the declaration to determine whether — and how — an assessment lien is created for planned-community HOAs
• Requesting a written payoff statement itemizing assessments, interest, late fees, and attorney's fees
• Checking whether a condominium association's lien has a valid basis under § 27-31-210 and whether the amounts are accurate
• Questioning disputed charges in writing and keeping copies (see getting your records)
• Early on, a licensed South Carolina attorney is the right resource — options narrow once a foreclosure action is filed

Frequently asked questions

Can a South Carolina planned-community HOA put a lien on my home?

Only if the recorded declaration creates a lien. The HOA Act does not supply one. The declaration's specific language — and whether the association followed it — determines the answer.

Does the condo lien have priority over my mortgage?

Under § 27-31-210, the condominium assessment lien is prior to most liens, but it yields to tax liens and to "mortgage and other liens, duly recorded, encumbering the apartment" — so a duly recorded mortgage generally outranks the assessment lien. A licensed South Carolina attorney can trace the priority for your specific property.

Sources

• S.C. Code § 27-31-210 — Horizontal Property Act lien
• S.C. Code §§ 15-3-520 and 15-3-530 — Twenty-year and three-year limitation periods
• S.C. Code §§ 29-3-630 and 29-3-680 — Mortgage sales and appraisal
• S.C. Code §§ 27-30-110–170 — South Carolina HOA Act