Notice Requirements for Liens & Foreclosure Must be Strictly Complied With

A California Appellate Court decision in Diamond v Superior Court (2013) confirmed that any lien that is recorded against a member’s separate interest property must be recorded in “strict compliance” with the statutory notice requirements. A lien that is recorded without strict compliance with the notice requirements is recorded in error and must be released or rescinded within 21 calendar days of the determination of the error (This is California law). The association committed four (4) errors in this case, each of which was sufficient to invalidate the association’s lien on the member’s property. The errors were:

• Failure to advise the member of her right to participate in both internal dispute resolution and ADR;
• Not timely serving the member with a copy of the recorded lien by “certified” mail within 10 days after recording (a copy was mailed by regular mail 28 days after recording);
• Failure on the part of the board of directors to record the board’s decision to foreclose, that was properly made in executive session, in the subsequent open meeting of the board of directors; and
• Failure to properly serve notice of the board’s vote to foreclose prior to initiating the foreclosure action.

See case decision: Diamond v. Superior Court