New York · CondominiumsNew York condo common charges lien: priority, the closing statement and the six-year notice of lien

In a New York condominium, the board of managers, on behalf of the unit owners, has a lien on each unit for unpaid common charges with interest. The lien is prior to all other liens except taxes in favor of a taxing unit, all sums unpaid on a first mortgage of record, and certain subordinate mortgages held by listed public housing agencies; an exclusively non-residential condominium's declaration may make it superior to mortgages. When a unit is sold or conveyed, the unpaid common charges must be paid out of the sale proceeds or by the grantee. Either the seller or the buyer is entitled to a statement from the manager or board setting out the unpaid common charges accrued against the unit, and neither is liable for – nor is the unit subject to a lien for – unpaid charges accrued before the conveyance beyond the amount in that statement (RPL §339-z). The lien becomes effective when a verified notice of lien is filed with the recording officer where the declaration is filed, and it lasts until the charges are paid or six years from filing, whichever is sooner; once paid, the owner is entitled to an acknowledged certificate of payment. The board may foreclose the lien like a mortgage, but must give the owner at least 90 days' notice in 14-point type before starting the foreclosure, and it may also sue for a money judgment without waiving the lien (RPL §339-aa).