33-1256

33-1256. Lien for assessments; priority;
mechanics' and materialmen's liens; applicability

A. The association has a lien on a unit for any assessment levied against that unit
from the time the assessment becomes due. The association's lien for assessments, for
charges for late payment of those assessments, for reasonable collection fees and for
reasonable attorney fees and costs incurred with respect to those assessments may be
foreclosed in the same manner as a mortgage on real estate but may be foreclosed only if
the owner has been delinquent in the payment of monies secured by the lien, excluding
reasonable collection fees, reasonable attorney fees and charges for late payment of and
costs incurred with respect to those assessments, for a period of one year or in the
amount of one thousand two hundred dollars or more, whichever occurs first. Fees,
charges, late charges, monetary penalties and interest charged pursuant to section
33-1242, subsection A, paragraphs 10, 11 and 12, other than charges for late payment of
assessments, are not enforceable as assessments under this section. If an assessment is
payable in installments, the full amount of the assessment is a lien from the time the
first installment of the assessment becomes due. The association has a lien for fees,
charges, late charges, other than charges for late payment of assessments, monetary
penalties or interest charged pursuant to section 33-1242, subsection A, paragraphs 10,
11 and 12 after the entry of a judgment in a civil suit for those fees, charges, late
charges, monetary penalties or interest from a court of competent jurisdiction and the
recording of that judgment in the office of the county recorder as otherwise provided by
law. The association's lien for monies other than for assessments, for charges for late
payment of those assessments, for reasonable collection fees and for reasonable attorney
fees and costs incurred with respect to those assessments may not be foreclosed and is
effective only on conveyance of any interest in the real property.

B. A lien for assessments, for charges for late payment of those assessments, for
reasonable collection fees and for reasonable attorney fees and costs incurred with
respect to those assessments under this section is prior to all other liens, interests
and encumbrances on a unit except:

1. Liens and encumbrances recorded before the recordation of the declaration.

2. A recorded first mortgage on the unit, a seller's interest in a first contract
for sale pursuant to chapter 6, article 3 of this title on the unit recorded prior to the
lien arising pursuant to subsection A of this section or a recorded first deed of trust
on the unit.

3. Liens for real estate taxes and other governmental assessments or charges
against the unit.

C. Subsection B of this section does not affect the priority of mechanics' or
materialmen's liens or the priority of liens for other assessments made by the
association. The lien under this section is not subject to chapter 8 of this title.

D. Unless the declaration otherwise provides, if two or more associations have
liens for assessments created at any time on the same real estate, those liens have equal
priority.

E. Recording of the declaration constitutes record notice and perfection of the
lien for assessments, for charges for late payment of those assessments, for reasonable
collection fees and for reasonable attorney fees and costs incurred with respect to those
assessments. Further recordation of any claim of lien for assessments under this section
is not required.

F. A lien for unpaid assessments is extinguished unless proceedings to enforce the
lien are instituted within three years after the full amount of the assessments becomes
due.

G. This section does not prohibit actions to recover sums for which subsection A of
this section creates a lien or does not prohibit an association from taking a deed in
lieu of foreclosure.

H. A judgment or decree in any action brought under this section shall include
costs and reasonable attorney fees for the prevailing party.

I. The association on written request shall furnish to a lienholder, escrow agent,
unit owner or person designated by a unit owner a statement setting forth the amount of
unpaid assessments against the unit. The statement shall be furnished within fifteen
days after receipt of the request and the statement is binding on the association, the
board of directors and every unit owner if the statement is requested by an escrow agency
that is licensed pursuant to title 6, chapter 7. Failure to provide the statement to the
escrow agent within the time provided for in this subsection shall extinguish any lien
for any unpaid assessment then due.

J. The association shall record in the office of the county recorder in the county
in which the condominium is located a notice stating the name of the association or
designated agent or management company for the association, the address for the
association and the telephone number of the association or its designated agent or
management company. The notice shall include the name of the condominium community, the
date of the recording and the recorded instrument number or book and page for the main
document that constitutes the declaration. If an association's address, designated agent
or management company changes, the association shall amend its notice or record a new
notice within ninety days after the change.

K. Notwithstanding any provision in the condominium documents or in any contract
between the association and a management company, unless the member directs otherwise,
all payments received on a member's account shall be applied first to any unpaid
assessments, for unpaid charges for late payment of those assessments, for reasonable
collection fees and for unpaid attorney fees and costs incurred with respect to those
assessments, in that order, with any remaining amounts applied next to other unpaid fees,
charges and monetary penalties or interest and late charges on any of those amounts.

L. This section does not apply to timeshare plans or associations that are subject
to chapter 20 of this title.