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Court of Appeals Clarifies Condominium Lien Priority

When a first mortgagee also extends a second mortgage loan, and consolidates the two mortgages, does the condominium's lien enjoy priority over the second mortgage? In a recent case, the Court of Appeals held that when both mortgages loans were extended before any default on common charges, both mortgages enjoy priority over the condominium's lien.

6 minute read July 01, 2016 at 11:41 AM
By
Stewart E. Sterk
Court of Appeals Clarifies Condominium Lien Priority

Real Property Law Section 339-z provides that a condominium board's lien for unpaid common charges shall have priority over liens other than “sums unpaid on a first mortgage of record.”

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