Short answer
They can complicate it. Under section 5315 of the Uniform Planned Community Act, an association has a lien for unpaid assessments that is generally prior to other liens except certain earlier ones. A buyer or title company will normally want the balance paid at closing, so check your payoff before listing.
The lien
Section 5315 of the Uniform Planned Community Act gives a planned community association a lien on a unit for unpaid assessments. The statute says the lien is prior to all other liens and encumbrances on a unit except those recorded before the declaration and certain mortgages. Late charges, fines and interest can be part of what is owed.
Why it shows up at closing
A title search will turn up a recorded association lien, and a buyer will not want to inherit the debt. The usual fix is to pay the balance from sale proceeds at settlement. Ask the association for a written statement of what you owe, including any fines and attorney fees, well before closing.
Where it gets tricky
If dues are far behind and the house has little equity, the payoff may take most of the proceeds. Ask your attorney whether the association has already started a collection case. Section 5315 also says judgments include costs and reasonable attorney fees for the prevailing party, so legal costs can add up.
Check your documents
Whether your community is a planned community, a condominium or something else determines the statute that applies. The association documents tell you which. This page is general information and not legal advice. A Pennsylvania real estate attorney can read your declaration.
Selling for cash instead
Back dues and a thin margin are exactly where a quick, predictable closing can matter. If you want a direct sale, Kaizen Home Buyers can make a cash offer on the house exactly as it stands. There are no repairs and no agent commission. An offer can come within 24 hours, and closing takes 14 to 30 days or lands on your date. The number is 267-329-0084.