What Takes Priority? The Mortgage or The Lien? (FL)

For lenders, prior to taking a mortgage on property within a condominium or homeowners’ association community, it is important to review and understand the association’s governing documents (declaration, by-laws, and articles of incorporation) to determine the priority of an assessment lien and a mortgage. Just because a mortgage was recorded prior to the assessment lien, does not mean the lender’s mortgage will take priority over the association’s assessment lien. The language of the association’s governing documents is critical in determining the priority of these encumbrances.  Read the article………..


Related Articles

3 Benefits of Having an Architectural Review Committee

HOAs often have many different committees to help maintain standards throughout the community

Ways to raise funds for big-ticket association projects

Sooner or later, every community association will face an expensive remediation project. Roofs eventually leak, and boilers conk out. Sidewalks,

Unsigned Bylaws and Other Docs in an HOA – Are They Valid?

If a Board took the steps to have updated documents prepared, but did not follow through to the end to get them approved, AND recorded, then they are not by law legally effective and are subject to challenge.