Complimentary RPTE member only, non-CLE Teleconference recorded on June 14, 2016
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In all states, common interest ownership law permits a condominium, cooperative, or homeowners association to assert a lien upon a lot or unit within the community when its owner fails to pay the common expense assessment allocated to that lot or unit. In some states that have adopted statutes comparable to the Uniform Condominium Act or the Uniform Common Interest Ownership Act, the association has a limited priority for some portion of the unpaid assessments (typically, six or nine months’ worth).
In the wake of the mortgage crisis, the issue of whether (and to what extent) an association’s lien should have priority over other liens has produced a great volume of litigation as well as aggressive efforts by federal regulators to negate or pre-empt state law priority rules. Our speakers will address recent judicial, statutory, and regulatory developments, including: (1) the rationales for (and against) association lien priority; (2) whether the association’s lien priority constitutes a true lien priority or merely a payment priority; (3) whether the association’s limited priority is recurring or can be asserted on a one-time-only basis; (4) whether the association’s priority extends to interest, attorneys’ fees, and other costs of collection; (5) the effect of the federal Housing and Economic Recovery Act (HERA) on state law association lien priority rules; and (6) FHA’s proposed rule under which reverse mortgage loans would be ineligible for assignment in states that provide the association with limited lien priority.