A home sold and the closing didn't pay everything owed to the HOA. How do we collect from the former owner?

By OurHOA · General information · Revised October 28, 2026

How an HOA board collects dues a home sale missed: what Texas, Florida and Colorado resale certificate laws allow, a demand letter, small claims and a timeline.

Part of the HOA board handbook: treasurer and money.

The short answer

Find out why the money was missed before anyone contacts the former owner. If the association's own resale certificate, estoppel certificate or statement of unpaid assessments left the charge off, Texas, Florida and Colorado all hold the association to the figure it gave, and in Texas the seller is released from it too. If the certificate showed the charge and the closing simply didn't pay it, or the charge came due after the certificate was prepared, the association usually still has a claim against the former owner. Sort the shortfall within a week, ask the title company to check its own file, then send one written demand to the former owner and file in small claims or hand it to your attorney if it isn't paid in 30 days. Rules vary by state and by your declaration, and this guide is education, not legal advice.

Pull four documents and sort the gap

Get these on the table before the board discusses it: the certificate or statement the association issued, with its preparation date; the record showing when and how it was delivered; the owner ledger as it stood on the preparation date and on the closing date; and the payment the title company sent, with any payoff sheet that came with it. Then put the shortfall in one of four buckets, because each one has a different answer. Bucket 1: the certificate left off a charge that already existed, or understated it. A fine levied last month, a late fee never posted, a special assessment approved but not billed. Bucket 2: the certificate was right and the title company paid less than it showed. Bucket 3: the charge came due after the certificate was prepared. The next monthly installment, or a late fee on it, when closing slipped. Bucket 4: nobody asked for a certificate. Cash sales, deeds between relatives and transfers into a trust often close without one. One sale can have money in more than one bucket. Split the amount line by line.

What Texas, Florida and Colorado let you collect

Texas. Property Code 207.005(a) says the association may not deny the validity of any statement in a resale certificate. Its lien for an amount that was owed on the preparation date but left off ends automatically, and the buyer, the selling owner, their agents, the lender and the title company are not liable for it. Bucket 1 money is gone in Texas, from everyone. Section 207.005(b) keeps the association's right to collect debts that arise or come due after the preparation date, and its lien for future assessments, so bucket 3 is still collectible. Bucket 2 was disclosed, so neither the release nor the lien termination applies to it. Florida. Section 720.30851(3) says the association waives any amount above the estoppel figures against anyone who relies on the certificate in good faith, and against that person's successors and assigns. That protects the buyer, the lender and the title company. Whether the association can still pursue the seller personally for a bucket 1 amount depends on the facts, so ask your attorney before a demand goes out. Section 720.3085(2)(a) makes each owner liable for every assessment that came due while they owned the parcel, and 720.3085(2)(b) makes a new owner jointly and severally liable with the previous owner for unpaid assessments that came due up to the transfer. That matters most for bucket 4. Colorado. C.R.S. 38-33.3-316(8) makes the written statement of unpaid assessments binding on the association, the board and every unit owner. If the association never furnished a statement after a proper request, it loses its lien for assessments due as of the request date. Section 316(6) still allows a lawsuit to recover the sums, 316(7) gives the association its costs and reasonable attorney fees in a suit under that section, and 316(5) extinguishes the lien unless enforcement starts within six years after the full amount comes due.

When the certificate was right and the closing missed it

Bucket 2 is the easiest to fix and the one boards most often let drift. Email the escrow officer who handled the closing within days, attach the certificate and the ledger, and ask them to compare their disbursement to the certificate figure. A wrong digit or a payoff that used the prior month's balance is a mistake in their own file, and a title company that sees the error early has the seller's contact details and a reason to sort it out. Get the reply in writing. If the title company says no, or doesn't answer in 10 business days, the claim is against the former owner. Do not quietly roll the balance onto the new owner's account. Even where a lien for a disclosed amount may survive the sale, the charge came due on the seller's watch. Go after the seller first, and talk to the attorney before the new owner sees a bill for it. A statement showing a debt they never agreed to pay is how a sale dispute turns into a fight with a new neighbor.

Steps in order, with a sample timeline

Most boards find the gap at the first monthly reconciliation after closing. A workable schedule from that day: Day 0: the treasurer notices the shortfall and moves it off the lot's account into a receivable under the former owner's name. Days 1 to 5: pull the four documents, split the amount into buckets, and find the former owner's new mailing address from the closing file or the escrow officer. Day 5: write to the title company about any bucket 2 amount. Day 10: the treasurer brings a one-page summary to the board: amount, bucket, statute, and a recommendation to pursue or write off. In Texas, bucket 1 is a write-off. Day 14: send the demand letter by certified mail and email, with a copy of the ledger and the certificate, and 30 days to pay. Day 45: if it isn't paid, file or refer it. Texas justice courts hear civil claims up to $20,000 (Government Code 27.031). Colorado small claims court takes cases up to $7,500 (C.R.S. 13-6-403). In Florida, check your county court's small claims limit or send it to the association's collection attorney. If you win, our guide on collecting a judgment the HOA won against an owner covers recording it and getting paid. A year that passes in silence makes the former owner harder to find and the paperwork harder to rebuild.

Wording the board can copy

Motion: "I move that the association pursue the former owner of [lot or address] for $[amount] in assessments that came due on or before the [date] closing and were not paid from the sale proceeds, that the treasurer send a written demand allowing 30 days, and that if the balance remains unpaid the president may file a small claims case or refer the account to the association's attorney." Demand letter paragraph: "Our records show that the sale of [address] closed on [date]. The association's [resale certificate/estoppel certificate] dated [date] showed $[amount] owed through [date], and the association received $[amount] from the closing. The remaining $[amount] covers [the specific charges] that came due while you owned the property. A ledger and a copy of the certificate are enclosed. Please pay this amount by [date, 30 days out]. If you believe the figure is wrong, write to us at [address] by that date with your documents and we will review them." Write-off motion for a Texas bucket 1 amount: "I move that the association write off $[amount] in charges on [lot] that were omitted from the resale certificate dated [date], as required by Property Code 207.005, and that the treasurer report the process change made to prevent a repeat at the next meeting."

Mistakes boards make

Billing the new owner for a charge the certificate didn't show. In Texas and Florida the law sides with the person who relied on the certificate, and the association ends up crediting the account anyway, after a bad first month with the neighbor. Letting the receivable sit. The former owner moves twice, the escrow file is archived, and the Colorado six-year lien clock keeps running. Personal claims have their own limitation periods too. Adding late fees and interest to the former owner's balance without checking that the collection policy allows it for a non-owner. Ask the attorney before adding anything beyond the original charges. Sending the demand to the old address. The former owner doesn't live there anymore and the new owner opens the envelope. Fixing the money and not the cause. Every bucket 1 loss started with a certificate prepared from an incomplete ledger. Post fines and late fees the day they're imposed, and have a second director check every figure before a certificate goes out. Our guide on answering a resale certificate or estoppel request lays out that workflow.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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