Can a HOA block a sale due to outstanding levies?

YES! The generally accepted ranking of preferred creditors are municipalities first, then HOA’s and then banks holding the mortgage, followed by the rest. Sometimes HOA’s sign waivers in lieu of the banks to allow for smoother sale of the property, but this has more often than not proofed fatal, leaving the HOA to take on the fight.

Two recent court cases has put HOA’s back into a position where they can rely on case law to support their right to hold back a levy clearance certificate,  which effectively halts the transfer till levies are paid.

Liquidators wanting to sell a property in execution, now have to settle the levy amounts outstanding with the HOA, or reach an agreement with the HOA before they can sell the property.