As we have been reminding you for several months now, the deadline for homeowner associations (“HOAs”) to register with the Colorado Division of Real Estate (“Division”) without incurring penalties is today! As reported in our December 17th blog posting, the Division granted a grace period through February 28, 2011 for HOAs to register. Here’s some important information you need to know if your association has not yet registered:
●The Division is not requiring pre-CCIOA communities (HOAs created prior to July 1, 1992) to register. However, the Division is strongly encouraging these associations to register in the event courts ultimately determine these communities must register under the new law.
●The cost of registration is $8.95. The registration is required to be conducted online and the Division is not accepting checks or money orders for the registration fee.
●When preparing to register, here is the information you will need to have available:
(1) Name of the association;
(2) Name of the association’s designated agent or management company, if any;
(3) Valid physical address and telephone number for both the association and the designated agent or management company, if any;
(4) Name of the common interest community;
(5) Initial date of recording of the declaration;
(6) Reception number or book and page number for the main document that constitutes the declaration;
(7) The type of association (e.g. planned community, condominium); and
(8) The number of units in the association.
●To register your association; use this link on the Division’s website. Follow the instructions to register your association and make payment online.
●There has been some debate over what the penalties for failing to register actually are under the new law. However, there is no debate that the potential penalties are significant and would likely include:
(1) Associations will not be permitted to enforce their superlien unless a current registration is held;
(2) Associations will be permitted to obtain a personal judgment against an individual for delinquent assessments, but will not be able to obtain reasonable costs and attorney fees for this action unless a current registration is held;
(3) If an association is a prevailing party in litigation, the association will not be able to recover reasonable costs and attorney fees relating to the litigation unless a current registration is held;
(4) Associations will not be permitted to foreclosure on the association’s statutory lien unless a current registration is held. If an association has commenced a judicial foreclosure prior to today, the association cannot proceed with that action until a current registration is held.
We recommend that all associations – including pre-CCIOA communities – register today!