SMALL CLAIMS ACTIONS

If the association's owner of record no longer owns the property, then the previous owners' debt is considered a personal obligation and can be pursued in small claims court up to $5,000.

However, ASAP does not recommend pursing small claims actions that are less than $1,000. ASAP's fees and costs to pursue a small claims action are added on to the owners' debt and included in the lawsuit which is approximately $525. This includes recording one Abstract of Judgment in the County Recorder's office in the county where the owner currently owns, resides or later buys real property.

The Abstract of Judgment creates a lien against all of their real property in the county so when the owners' try to refinance or sell their property, the title will be clouded by the lien and the owners will be forced to pay the judgment in full, including interest.

Judgment holders are entitled to collect interest at the rate of 10% per year, which begins to accme on the date the judgment was entered. After the abstract is recorded with the county, all of ASAP's fees and costs are due and payable by the Association, upon receipt of an invoice from ASAP, unless a separate agreement is made with the Association to pay upon recovery.

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