Almost nothing vexes a condominium’s board of managers more than a unit owner who fails to pay common charges. When faced with this problem, the board has several options. The standard approach is to file a common charge lien against the unit, followed by a foreclosure suit.1 While it always makes sense to file a lien, sometimes the prospect of suing to foreclose is too lengthy, too expensive, or otherwise not advisable. Without addressing all the reasons why this is so, a large factor is that, unlike a cooperative’s claim for unpaid maintenance,2 a condominium’s common charge lien is inferior to a first mortgage.3 The proceeds of a sale at foreclosure must go to the holder of the first mortgage, and there may be nothing left for the condominium.
If the unit owner in arrears is renting the unit to a tenant, the board has a viable alternative to the foreclosure route. By statute, the board can demand that rent be paid directly to the condominium. The statute is Section 339-kk of the Condominium Act.4
Requirements
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