Property Ownership

A Rhode Island condominium unit owner is delinquent on their monthly HOA assessments. The condominium association may:

AOnly send collection notices

BFile a lien against the unit and potentially foreclose on the unit✓ Correct

CForce the owner to sell the unit within 30 days

DOnly sue for the unpaid amounts in small claims court

Explanation

Under the Rhode Island Condominium Act, a condominium association may file a lien against a unit owner's property for unpaid assessments. The association may foreclose on the lien under certain conditions to collect unpaid amounts.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.