Which of the following is true about the automatic lien?

• A. It protects the association's interests and may prevent sale until debt is settled.
• B. It is used to waive late fees automatically.
• C. It guarantees a delinquent owner will never be foreclosed.
• D. It only applies to new construction developments.

Answer: (A)

The automatic lien is a security right that automatically attaches to a homeowner’s property when assessments become delinquent, giving the association a claim on the property for unpaid dues. This protects the association’s interests by ensuring there is a legal mechanism to recover the debt if the owner doesn’t pay, and it can complicate or delay a sale or transfer until the debt is settled because lenders and title companies typically require the lien to be cleared before closing. It does not waive late fees, and it does not guarantee foreclosure—foreclosure is a separate legal process that may occur if the debt remains unpaid. It also applies to delinquent accounts in general, not only to new construction developments.