Can Condo Boards File a Lien for Unpaid Common Charge?
Can Condominium Boards File a Mechanic’s Lien for Unpaid Common Charge?
By Dillon Nash, President of New York Condo Lien, powered by Speedy Lien
In condominium buildings, unit owners pay common charges for items contributing toward the building’s upkeep and maintenance such as maintaining common areas, trash removal, snow removal, landscaping, etc. If a unit owner fails to pay common charges, a condominium board has the refile to file a mechanic’s lien against the title of the unit. If the lien remains unpaid, the condo board can take legal action such as filing to foreclose on their lien.
New York Real Property Law, Section 339, also known as the Condominium Act, states the board of managers have the right to file a lien on each unit for the unpaid common charges thereof, together with interest. The lien will have priority over all other liens except: (i) liens for taxes on the unit in favor of any assessing unit, school district, special district, county or other taxing unit, (ii) all sums unpaid on a first mortgage of record. Upon the sale or conveyance of a unit, such unpaid common charge liens shall be paid out of the sale proceeds.
How long is a Lien for common charges valid for? Upon acceptance and recording, the lien shall continue in effect until all sums, with interest, have been fully paid OR until the lien expires six years from the date of filing.
What happens once a mechanic’s lien is filed for common charges? When a lien is filed against a unit for non-payment, the lien “clouds” the title of the property. The lien prevents the owner from selling or transferring title of the property, it blocks any financing / refinancing or closing until the lien is satisfied.
Can a condo board file a foreclosure for non-payment? A lien for unpaid common charges may be foreclosed in a similar manner as a bank foreclosing on a mortgage, for non-payment. During a foreclosure suit, the unit owner shall be required to pay a reasonable rental for the unit for the period prior to the sale pursuant to judgment of foreclosure and sale. The condo board shall have the power, unless prohibited by the condo’s by-laws, to bid on the unit at a foreclosure sale. Including but not limited to acquire, hold, lease, mortgage and convey the same.
What happens when a lien is paid and the balance is cleared? Upon payment in full, the condo board must satisfy the lien and provide a copy to the unit owner acknowledging the payment.
What if a unit owner failed to pay taxes in addition to failing to pay the common charges? If a municipality acquires title to a unit as a result of tax enforcement, the municipality shall NOT be liable for and shall not be subject to suit for recovery of the common charges.
Is your condo board owed money from a delinquent tenant? Protect the board and file a mechanic’s lien for Unpaid Common Charges.
Visit us on the web to submit your Unpaid Common Charges lien. Or call Dillon Nash for a free consultation. Speedy Lien is the industry leader. Speedy Lien has the expertise and experience to navigate the legal requirements and procedures involved in filing a lien. We can ensure that all the necessary paperwork is filed correctly and on time, minimizing the risk of errors.
Filing a mechanic’s lien can be stressful and time-consuming, especially if you are already dealing with the fallout of an unpaid debt. Hiring a professional company to handle the filing process can give you peace of mind and free up your time to focus on other aspects of your business.
Hiring a Speedy Lien is a more cost-effective option than retaining an attorney and pursuing a lawsuit to collect unpaid debts. The filing process can be faster and less expensive than pursuing legal action, which can save you time and money in the long run.
By letting the experts handle the filing process, you can ensure that your legal rights are protected and increase your chances of getting paid what you are owed. Don’t let unpaid debts put your business at risk – contact Speedy Lien, a professional mechanic’s lien filing company, today and take the first step towards securing your payment.
Dillon Nash, President
New York Condo Lien powered by Speedy Lien, Inc.
212-203-7420 x 104 DillonNash@SpeedyLienInc.com
