The Washington Court of Appeals recently decided that the applicable statute of
limitations for an action to enforce a homeowners association's lien for unpaid
assessments is six years. It noted that a Washington statute establishes a
six-year statute of limitations for actions upon a contract in writing or
liability arising out of a written agreement and ruled that the association's
declaration of covenants is a written agreement. The Court further held that
each unpaid annual assessment constituted a separate claim, which limited the
association to the collection of unpaid assessments imposed over the preceding
six years. During the course of its opinion, it pointed out that the WUCIOA
establishes a six-year statute of limitations for actions arising out of that
statute and that the Washington Condominium Act establishes a three-year statute
of limitations for actions arising out of that statute.
Washington common
interest associations should consider obtaining legal counsel before beginning
collection actions that involve lengthy delinquencies. This will help avoid
potential liability if the matter is litigated.
