Our HOA's common area is headed to a property tax sale, or already sold. What should the board do?

By OurHOA · General information · Revised November 8, 2026

What an HOA board does when the pool lot or greenbelt shows unpaid property tax or a tax sale: redemption deadlines, challenges, sample wording, TX, FL and CO rules.

Part of the HOA board handbook: treasurer and money.

The short answer

Treat this as a deadline problem first. Find out today what stage the parcel has reached and the last day to stop or undo it. If the parcel is still redeemable and the bill is small next to what the land is worth to the community, most boards should pay it, get a receipt, and argue about whether the tax was owed afterward. Ask the association's attorney whether to pay under written protest. If the sale has happened, hire a real estate attorney this week, because the time limits are short. A member's lot at a tax sale is a different problem. Rules vary by state, by county and by your governing documents. This is education, not legal advice.

How a tax-free parcel ends up at auction

Texas appraises qualifying homeowners' organization property at a nominal value (Tax Code 23.18). Florida bars separate taxation of common elements in a platted residential subdivision, regardless of who owns them (Fla. Stat. 193.0235(1)). Colorado says common elements are assessed through the units and not taxed separately (C.R.S. 38-33.3-105(2)), but in a planned community that term means real estate the association owns or leases (38-33.3-103(5)(b)), so land still in a developer's name may not qualify. In Marin County, California, the Tiburon View association found its parcel with two pools and laundry had been auctioned in March 2024 for $6,600. The local paper reported $1,606 in bills and penalties from 2013 through 2018, on a parcel officials thought was vacant. The county later found the lien was an error under California Revenue and Taxation Code 2188.5. The buyer refused to consent, so the supervisors held a hearing and voted 4-0 to rescind, refunding the buyer with interest. The missing tax bill will not save you. In Texas, failure to send or receive a bill does not affect the tax or any collection procedure (Tax Code 31.01(g)). Florida holds every owner responsible for knowing taxes are due (197.122(1)).

What to find out in the first 48 hours

Put one director in charge and collect: - The parcel number, owner of record and mailing address on the appraisal district or property appraiser site. - The tax office history for every year unpaid, including any certificate, lawsuit, warrant, sale date or deed. - The recorded plat, the declaration language showing the parcel as common area, and the vesting deed, which shows whether the association or the developer holds title. - Any letter a homeowner received. In Florida, the tax deed notice list includes record owners of land touching common elements of a subdivision (197.502(4)(h)), so a neighbor may get the warning before the board does. Then send the tax office this: "Parcel [number] is shown as common area on the plat recorded at [reference] and is held for the use of all lot owners under the declaration recorded at [reference]. Please tell us in writing the years and amounts unpaid, whether any certificate, suit, warrant or sale exists, any scheduled sale date, and the amount needed to stop it. Please also review whether this parcel should be separately taxed, and send future notices to [address]."

The clocks in Texas, Florida and Colorado

Texas. A taxing unit can sue to foreclose any time after delinquency (Tax Code 33.41). A tax unpaid on July 1 carries a 12 percent penalty plus 1 percent interest a month (33.01). After a sale, the owner of non-homestead, non-agricultural land has until the 180th day after the buyer's deed is filed for record to redeem, paying the bid, the recording fee, the buyer's taxes and costs, and a premium of up to 25 percent (34.21(a), (e)). A title suit against the buyer generally must start before the first anniversary of that filing, after which the buyer holds full title (33.54). The deed itself may be impeached only for fraud (34.01(n)). Florida. The county sells a tax certificate first. Anyone may redeem until the clerk receives full payment for a tax deed, by paying the face amount, interest and costs (197.472(1)). The holder can apply for a deed 2 years after April 1 of the issue year (197.502(1)). The clerk mails notice at least 20 days before the sale (197.522(1)(a)). A sale can be held invalid only on narrow grounds, and the one that fits common area is that the property was not subject to taxation (197.122(1)). The tax collector can issue a certificate of error for that reason (197.443(1)(b)). After a deed has been out for 4 years, the former owner's claim is barred (95.192(1)). If you win a challenge but the taxes were never paid, you repay the buyer's price and taxes with 12 percent interest, plus deed costs and improvements, and the prevailing party recovers attorney's fees (197.602). Colorado. The treasurer sells a tax lien, and the owner or anyone with a legal or equitable claim may redeem (C.R.S. 39-12-103(1)). The holder can apply for a treasurer's deed after August 1 of the third calendar year after the sale (39-11.5-102(1)). The public auction falls 30 to 60 days after the notice is mailed (39-11.5-109(1)). A property owner must file an intent to redeem at least 7 calendar days before the auction, and the redemption statement expires after 10 business days or at noon the day before the auction (39-11.5-106). Title vests when the eighth business day after the auction closes or the repurchase period ends (39-11.5-501(1)). SB 26-144 rewrote this process effective June 1, 2026, so old checklists are stale. A petition to abate tax levied in error generally must be filed within two years after January 1 of the year after the levy (39-10-114(1)(a)(I)(A)). If the developer still holds title, tell your attorney at once. Texas's redemption statute and Colorado's auction procedure speak of the owner redeeming, so the association may need the developer's signature or a court's help.

Pay now, then fix the cause

Compare the payoff with what losing the pool, entrance or pond would cost. Marin's unpaid bills came to $1,606. If the parcel is not yet in the association's name, check that the declaration lets the board spend on it. Sample motion: "I move that the board authorize the treasurer to pay up to $[amount] to [tax office] to redeem parcel [number], obtain a receipt and any certificate of redemption, reserve the right to seek a refund, and engage [attorney] to review the taxes billed." Once the deadline is safe, go after the bill. In Texas, the taxing unit must waive penalties if its own or the appraisal district's act or omission caused the delinquency and you pay within 21 days of when you knew or should have known (33.011(a)(1)). Our guide on how to protest the appraisal of HOA common area property covers correcting the value. If the deed never moved out of the developer's name, our guide on getting common area deeded from the developer covers that fix.

If the sale has already happened

Get the recorded deed, calendar the redemption and suit deadlines from its recording date, and send it to the attorney the same day. Then: - Ask the tax collector in writing to review the sale if the parcel should not have been taxed. Marin's fix began with the association's petition, but ask the attorney whether your county has that power. - Tell the insurance agent and keep the coverage in force. - Keep maintaining the property, and don't lock out the buyer without legal advice. - Send every call or letter from the buyer to the attorney, including any offer to sell the parcel back. Find out what survived. In Texas, the deed stays subject to restrictive covenants and easements recorded before January 1 of the year the tax lien arose (34.01(n)). In Florida, most rights end at the deed (197.552), but usual use restrictions survive (197.573), as do easements for drainage and for ingress and egress (197.572). In Colorado, title comes free of junior liens and encumbrances (39-11.5-501(1)), though a court decides what happens to a recorded junior interest left out of the process (39-11.5-505). Ask whether the owners' use rights in the declaration count, since that may limit what the buyer can do with the land.

What to tell owners, and a sample timeline

Tell owners early: "County records show unpaid property taxes on [parcel], which includes [the pool]. The board has [paid the amount / hired counsel] and the current deadline is [date]. If you receive mail from the county about this parcel, send it to [email] the same day. Please do not contact the buyer. We will update you by [date]." Sample timeline: - Day 1: pull the tax record, deed and notices, calendar every deadline, call the attorney. - Days 2 to 3: send the written request and get a payoff figure. - Within two weeks: vote at a properly noticed meeting, pay by a traceable method and keep the receipt. - Within 30 days: correct the mailing address, start any refund request, report to owners.

Keep it from happening again

Put a parcel check on the treasurer's calendar each January. List every common parcel from the plat, then look up each one in the appraisal and tax records. A zero balance on the owners' lots tells you nothing about the common parcel. Keep the mailing address current with the appraisal district, assessor or property appraiser. Two mistakes to avoid: - Arguing that the tax was wrong while the redemption window closes. - Planning to bid at the auction. Florida's opening bid already includes the redemption amount plus sale costs and more interest (197.542(1)), and an investor can outbid you.

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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