New Jersey Condominium & HOA Assessment Liens and Foreclosure

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.

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.