HOA Refusal to Release Invalid Lien Constituted Slander of Homeowners’ Title for Which HOA is Liable

Indiana Appellate Court decision (June 11, 2011).

This case involves husband and wife homeowners (“Homeowners”) who sued their HOA for damages based on claims that the HOA slandered the title to their property by improperly recording a invalid lien due to an alleged violation of the HOA’s governing documents.. Homeowners’ property is located within a common interest community where the CC&Rs contain provisions which specify certain requirements for the leasing of properties within the community. Homeowners entered into a lease of their property with a third party without complying with certain of the requirements contained in the governing documents.