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………..

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