Redeeming a Property Within a Condominium Owner’s Association

Homeowners often begin to panic when they discover their Condominium Owner’s Association has either filed to foreclose or has already foreclosed on their property. Often, this happens (sometimes improperly) without the homeowner realizing or having knowledge the COA was about to foreclose. The question then becomes, what happens if the property is foreclosed on and sold?  The answer to this question is governed by Texas Property Code Sec. 82.113.

After the property has been foreclosed on and sold, the redeeming lot owner has 90 days from the date of the property to redeem the unit. If the COA is the purchaser, the owner must pay the association the following:

1. all amounts due the association at the time of the foreclosure sale, 
2. interest from the date of foreclosure sale to the date of redemption at the rate provided by the declaration for delinquent assessments, 
3. reasonable attorney’s fees and costs incurred by the association in foreclosing the lien, 
4. any assessment levied against the unit by the association after the foreclosure sale, and 
5. any reasonable cost incurred by the association as owner of the unit, including costs of maintenance and leasing.

If a party other than the association is the purchaser, the redeeming lot owner must pay the purchaser the following:

1. an amount equal to the amount bid at the sale;
2. interest on the bid amount computed from the date of the foreclosure sale to the date of redemption at the rate of six percent;
3. any assessment paid by the purchaser after the date of foreclosure; and
4. any reasonable costs incurred by the purchaser as the owner of the unit, including costs of maintenance and leasing. 

The owner redeeming the property may also be required to pay the association any outstanding assessments as well as attorney’s fees and costs incurred by the association in foreclosing the lien. 

Redemption can be a complex process. This article is in no way intended to encompass the entirety of the redemption process for properties within Condominium Owners Associations, rather, our intent is to lay out the basic timeline and requirements for post-foreclosure redemption. We highly recommend contacting us to help you through the process. Refer to Texas Property Code Sec. 82 for the relevant statutes. 

COA Attorneys Dallas TX – Nacol Law Firm PC

Disclaimer: The information provided in this article is in no way intended to constitute legal advice. The information provided is merely an overview of the relevant law. Do not act on this information. Always consult an attorney for legal advice.