Priority of Liens—Evolving Rules for Condominiums and Lenders (NY)

Cooperative housing corporations have a first lien on the shares and appurtenant proprietary leases for co-op apartments. As a result, in the event of a foreclosure (whether initiated by the co-op to collect maintenance arrears or the holder of a share loan/mortgage on an apartment), the co-op will receive from the proceeds generated by the sale of the apartment the amount owed to it for unpaid maintenance charges before payment of any portion of the outstanding balance of the loan owed to the apartment owner’s lender.  However, a condominium association (HOA), unlike a co-op, does not have a first lien for unpaid common charges on condominium units. Therefore, when a unit owner defaults on the payment of common charges and the mortgage on the unit, the HOA’s lien for common charges is junior to the “first mortgage of record against the premises.”      Read the article…………….


Related Articles

SJC (MA) Removes Uncertainty and Contortions from Condominium Construction Defect Claims

The state’s highest court upheld an Appeals Court ruling (Wyman v. Ayer Properties) holding that the economic loss rule limiting

Legislative Update: Estoppel Certificate Bill Dead, Bill to Make Administrative Changes to Association Practices Passes

The premature adjournment “sine die” of the recent session of the Florida House of Representatives spelled the demise of various

Florida’s HB 501 Seeks to Limit Construction Defect Claims to Seven Years from Date of Completion

In addition to Florida House Bill 87, which I wrote about in this blog last month, HB 501 also presents