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South Carolina Court Affirms Lien Foreclosure

/ Owner - August 9, 2018

A recent class action lawsuit in the U.S. District Court of South Carolina served as another chapter in the national debate of the legality of lien foreclosure for community association assessments.  In January 2018, seven South Carolina real estate owners in community associations, sued not only their seven associations but also six management companies and four law firms. Each of the seven plaintiffs were subject to lien foreclosure actions at the time of the lawsuit due to unpaid assessments. Plaintiffs argued that South Carolina lacks statutory authority for such liens and equitable foreclosure. CAI submitted an amicus brief to dismiss the case, explaining to the court that the law of real covenants supports the creation of homeowners associations, and lien rights are derived from common law and require no statutory basis in South Carolina.     Read the article………………

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