New Jersey Statewide Rule
New Jersey Condominium & HOA Assessment Liens and Foreclosure
Key Facts
- Condo statute
- N.J.S.A. 46:8B-21 (Liens in favor of association)
- Non-condo HOA statute
- N.J.S.A. 45:22A-44.1 (PREDFDA 6-month priority)
- Limited priority
- Up to 6 months of customary assessments, ahead of first mortgage
- Foreclosure
- Allowed, like a mortgage foreclosure; association may bid at sale
- Priority expiration
- First day of 60th month after recording
Summary
New Jersey gives both condominium and planned-community associations a foreclosable assessment lien with a limited 6-month priority over a prior first mortgage. The Condominium Act, N.J.S.A. 46:8B-21, sets the rule for condos; N.J.S.A. 45:22A-44.1 extends the same 6-month super-priority to non-condo HOAs.
a. The association shall have a lien on each unit for any unpaid assessment duly made by the association for a share of common expenses or otherwise, including any other moneys duly owed the association, upon proper notice to the appropriate unit owner, together with interest thereon and any late fees, fines, expenses, and reasonable attorney's fees imposed or incurred in the collection of the unpaid assessment
Full Breakdown
Under N.J.S.A. 46:8B-21, an unpaid-assessment lien has "a limited priority over prior recorded mortgages," except municipal liens or federal tax liens. That priority is capped: it "shall not exceed the aggregate customary condominium assessment against the unit owner for the six-month period prior to the recording of the lien," and is "cumulatively renewed on an annual basis." Liens "may be foreclosed by suit brought in the name of the association in the same manner as a foreclosure of a mortgage on real property," and the association may bid at the sale. The priority expires on the first day of the 60th month after recording. N.J.S.A. 45:22A-44.1 mirrors this 6-month priority for planned-real-estate HOAs.
Violations & Penalties
Unpaid assessments become a foreclosable lien; the association may sue, foreclose like a mortgage, and bid on the unit at sale (N.J.S.A. 46:8B-21). Up to 6 months of regular assessments take priority ahead of a first mortgage holder in foreclosure.
Frequently Asked Questions
Can a New Jersey HOA or condo association foreclose on my home for unpaid dues?
Does a New Jersey association lien beat my mortgage?
Do non-condominium HOAs in New Jersey get the same 6-month super-priority?
Sources
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