ORS 100.450
Association lien against individual unit

  • recording notice of claim
  • foreclosure
  • effect of judgment and payment
  • priority of lien

(1)

Whenever an association of unit owners levies any assessment against a unit, the association of unit owners shall have a lien upon the individual unit and the undivided interest in the common elements appertaining to such unit for any unpaid assessments. The lien includes interest, late charges, attorney fees, costs or other amounts levied under the declaration or bylaws. The lien is prior to a homestead exemption and all other liens or encumbrances upon the unit except:

(a)

Tax and assessment liens; and

(b)

A first mortgage or trust deed of record unless:

(A)

The condominium consists of fewer than seven units, all of which are to be used for nonresidential purposes;

(B)

The declaration provides that the lien of any mortgage or trust deed of record affecting the property shall be subordinate to the lien of the association provided under subsection (1) of this section; and

(C)

The holder of any mortgage or trust deed of record affecting the property when the declaration is recorded executes a separate subordination of the holder’s interest to the declaration which is attached as an exhibit and which states that the holder understands that the declaration subordinates the holder’s lien to the assessment lien of the association provided under subsection (1) of this section.

(2)

Recording of the declaration constitutes record notice and perfection of the lien for assessments. No further recording of a claim of lien for assessments or notice of a claim of lien under this section is required to perfect the association’s lien. The association shall record a notice of claim of lien for assessments under this section in the deed records of the county in which the unit is located before any suit to foreclose may proceed under subsection (4) of this section. The notice shall contain:

(a)

A true statement of the amount due for the unpaid assessments after deducting all just credits and offsets;

(b)

The name of the owner of the unit, or reputed owner, if known;

(c)

The name of the condominium and the designation of the unit as stated in the declaration or applicable supplemental declaration; and

(d)

A statement that if the owner of the unit thereafter fails to pay any assessments when due, as long as the original or any subsequent unpaid assessment remains unpaid, the unpaid amount of assessments automatically continue to accumulate with interest without the necessity of further recording.

(3)

The notice shall be verified by the oath of some person having knowledge of the facts and shall be recorded by the county recording officer. The record shall be indexed as other liens are required by law to be indexed.

(4)

Intentionally left blank —Ed.

(a)

The proceedings to foreclose liens created by this section shall conform as nearly as possible to the proceedings to foreclose liens created by ORS 87.010 (Construction liens) except, notwithstanding ORS 87.055 (Duration of lien), a lien may be continued in force for a period of time not to exceed six years from the date the assessment is due. For the purpose of determining the date the assessment is due in those cases when subsequent unpaid assessments have accumulated under a notice recorded as provided in subsection (2) of this section, the assessment and claim regarding each unpaid assessment shall be deemed to have been levied at the time the unpaid assessment became due.

(b)

The lien may be enforced by the board of directors acting on behalf of the association of unit owners.

(c)

An action to recover a money judgment for unpaid assessments may be maintained without foreclosing or waiving the lien securing the claim for unpaid assessments. A judgment entered on the action does not extinguish the lien. Payment on the judgment operates to satisfy the lien, or a portion of the lien, to the extent of the payment received.

(d)

An action to foreclose a lien under this section or recover a money judgment for unpaid assessments may not be maintained unless the Condominium Information Report and the Annual Report described in ORS 100.250 (Documents required to be filed with Real Estate Agency) are designated current as provided in ORS 100.255 (Processing of documents filed with Real Estate Agency).

(5)

Unless the declaration or bylaws provides otherwise, fees, late charges, fines and interest imposed pursuant to ORS 100.405 (Association of unit owners) (4)(j), (k), (L) and (m) are enforceable as assessments under this section.

(6)

With respect to condominium units also constituting timeshare property as defined by ORS 94.803 (Definitions for ORS 94.803 and 94.807 to 94.945), liens created by this section shall be assessed to the timeshare owners in the timeshare property according to the method for determining each owner’s liability for common expenses under the timeshare instrument and shall be enforced individually against each timeshare owner in the condominium unit.

(7)

Notwithstanding the priority established for a lien for unpaid assessments and interest under subsection (1) of this section, the lien shall also be prior to the lien of a first mortgage or trust deed of record for the unit and the undivided interest in the common elements, if:

(a)

The association of unit owners for the condominium in which the unit is located has given the lender under the mortgage or trust deed 90 days prior written notice that the owner of the unit is in default in payment of an assessment. The notice shall contain:

(A)

Name of borrower;

(B)

Recording date of trust deed or mortgage;

(C)

Recording information;

(D)

Name of condominium, unit owner and unit designation stated in the declaration or applicable supplemental declaration; and

(E)

Amount of unpaid assessment.

(b)

The notice under paragraph (a) of this subsection shall set forth the following in 10-point type:

NOTICE: The lien of the association may become prior to that of the lender pursuant to ORS 100.450 (Association lien against individual unit).

(c)

The lender has not initiated judicial action to foreclose the mortgage or requested issuance of a trustee’s notice of sale under the trust deed or accepted a deed in lieu of foreclosure in the circumstances described in ORS 100.465 (Circumstances in which deed in lieu of foreclosure extinguishes lien) prior to the expiration of 90 days following the notice by the unit owners’ association.

(d)

The unit owners’ association has provided the lender, upon request, with copies of any liens filed on the unit, a statement of the assessments and interest remaining unpaid on the unit and other documents which the lender may reasonably request.

(e)

The borrower is in default under the terms of the mortgage or trust deed as to principal and interest.

(f)

A copy of the notice described in paragraph (a) of this subsection, together with an affidavit of notice by a person having knowledge of the facts, has been recorded in the manner prescribed in subsection (3) of this section. The affidavit shall recite the date and the person to whom the notice was given. [Formerly 94.195; 1995 c.31 §13; 1997 c.816 §10; 1999 c.59 §18; 1999 c.677 §71; 2001 c.104 §31; 2003 c.569 §36; 2017 c.110 §2]

Source: Section 100.450 — Association lien against individual unit; recording notice of claim; foreclosure; effect of judgment and payment; priority of lien, https://www.­oregonlegislature.­gov/bills_laws/ors/ors100.­html.

Notes of Decisions

Condominium association’s notice that unit owner is in default in payment of assessment triggers obligation on first lienholder to file or reopen foreclosure action within 90 days following notice, or condominium association’s lien will take priority. Bank of New York Mellon Trust Co. v. Sulejmanagic, 367 Or 537, 481 P3d 293 (2021)

100.005
Definitions
100.010
Short title
100.015
Rules
100.020
Condominium provisions
100.022
Application of zoning, subdivision, building code or real property law to condominium
100.023
Void and unenforceable provisions of condominium governing document
100.025
Rule against perpetuities
100.100
Property submitted to unit ownership by declaration
100.102
Leasehold condominium submitted to unit ownership
100.103
Effect of submission of leasehold condominium to unit ownership
100.105
Contents of declaration
100.110
Approval of declaration, supplemental declaration or amendment required
100.115
Recording declaration and plat
100.116
Plat amendment
100.117
Correction amendment to declaration or bylaws
100.118
Correction amendment to condominium plat
100.119
Restated declaration
100.120
Supplemental declaration and plat required to annex additional property or reclassify variable property
100.122
Declaration prevails over inconsistent provisions of bylaws or articles of incorporation
100.123
Authority to amend declaration or bylaws to comply with federal or state law
100.125
Annexation of additional property
100.130
Relocation of unit boundaries and common elements by amendment to declaration
100.135
Amendments to declaration
100.140
Temporary relocation of floating structure
100.150
Declarant’s options until termination date
100.155
Variable property
100.170
Easement held by declarant
100.175
Reserve account for maintaining, repairing and replacing common elements
100.185
Express warranties
100.200
Declarant control of association
100.205
Transitional committee
100.210
Turnover meeting
100.220
Liabilities and obligations arising from transfer of special declarant right
100.225
Acquisition of special declarant rights by successor declarant
100.250
Documents required to be filed with Real Estate Agency
100.255
Processing of documents filed with Real Estate Agency
100.260
Condominium Information and Annual Reports
100.265
Annual Report
100.275
Application of ORS 100.250 to 100.280
100.280
Termination of filing Condominium Information Report
100.285
Resignation of designated agent
100.290
Rules
100.300
Inapplicability of ORS 100.301 to 100.320 to transient lodgings
100.301
Definitions for ORS 100.301 to 100.320
100.305
Conversion condominium
100.310
Rights of tenants in conversion
100.315
Improvements in conversion condominium during notice period
100.320
Authority of city or county to require developer to pay tenant moving expenses
100.405
Association of unit owners
100.407
Annual and special meetings of association
100.408
Quorum for meeting of association
100.409
Rules of order
100.410
Adoption of bylaws
100.411
Restated bylaws
100.413
Approval of amended or restated bylaws
100.415
Contents of bylaws
100.416
Criteria for board of directors membership
100.417
Board of directors of association
100.418
Receivership for failure of association to fill vacancies on board of directors
100.419
Assent of director to board action
100.420
Board meetings
100.423
Electronic notice to owner or director
100.425
Use of written ballot for approving or rejecting matters subject to meeting of unit owners
100.427
Methods of voting
100.428
Electronic ballot
100.430
Unit deeds
100.435
Insurance for individual units and common elements
100.440
Liens against property
100.445
Independent default clauses
100.450
Association lien against individual unit
100.460
Foreclosure against unit
100.465
Circumstances in which deed in lieu of foreclosure extinguishes lien
100.470
Lien foreclosure
100.475
Personal liability for assessment
100.480
Maintaining documents and records
100.481
Application of ORS 100.480
100.483
Annual budget
100.485
Duration and termination of initial management agreements and service and employment contracts
100.490
Notice to unit owners of intent of association to commence judicial or administrative proceedings
100.505
Status and ownership of units
100.510
Units and common elements distinguished
100.515
Interest of units in common elements
100.520
Easement held by units and common elements
100.525
Voting or consenting
100.530
Allocation of common profits and expenses
100.535
Maintenance and improvement of units
100.540
Use and maintenance of common elements
100.545
Compliance with bylaws and other restrictions
100.550
Service of process
100.555
Taxation of units
100.600
Termination of association or removal of real property by unit owners
100.605
Removal of property from association
100.610
Common ownership of property removed from unit ownership
100.615
Action for partition
100.620
Termination or removal no bar to resubmission
100.625
Procedure for dividing or converting units
100.626
Legislative findings
100.627
Electric vehicle charging stations
100.635
Filing with commissioner
100.640
Filing
100.645
Filing information to be kept current
100.650
Service of process on nonresident developer
100.655
Disclosure statement
100.658
Limited residential condominium filing
100.660
Nonresidential condominium or security filing
100.665
Exemption to certain disclosure and notice requirements
100.668
Documents and information included with filing
100.670
Fees
100.675
Inventory of filing
100.680
Escrow of unit sales agreement
100.685
Contents of unit sales agreement
100.700
Inspection of condominium
100.705
Sale prohibited prior to issuance of disclosure statement
100.710
Inspection deposit
100.720
Conditions prerequisite to sale
100.725
Documents prerequisite to execution of sale agreement and conveyance of unit
100.730
Cancellation of sale of unit
100.735
Waiver of right to cancel
100.740
Notice to purchaser of cancellation rights
100.745
Escrow documents required of successor to vendor’s interest
100.750
Inspection of records
100.770
Fraud and deceit prohibited
100.775
False or misleading advertising prohibited
100.780
Waiver of legal rights void
100.785
Blanket encumbrance prohibited
100.900
Civil penalty
100.905
Cease and desist order
100.910
Use of fees
100.920
Changes or actions that require approval or consent of mortgagee
100.990
Criminal penalties
Green check means up to date. Up to date