2011 Vermont Code
Title 27A Uniform Common Interest Ownership Act (1994)
Chapter 3 Management of the Common Interest Commu=-nity
§ 116 Lien for assessments [ 3-116 effective until January 1, 2012; see also section 3-116 effective January 1, 2012 set out below.]

[ 3-116 effective until January 1, 2012; see also section 3-116 effective January 1, 2012 set out below.]

§ 3-116. Lien for assessments

(a) The association has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner. Unless the declaration otherwise provides, fees, charges, late charges, fines and interest charged pursuant to subdivisions 3-102(a)(10), (11), and (12) of this title are 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 becomes due.

(b) A lien under this section is prior to all other liens and encumbrances except:

(1) liens and encumbrances recorded before the recordation of the declaration; and

(2) a first mortgage or deed of trust on the unit recorded before the date on which the assessment to be enforced became delinquent; and

(3) liens for real estate taxes and other governmental assessments or charges against the unit. The lien is also prior to all security interests described in subdivision (2) of this subsection to the extent of the common expense assessments based on the periodic budget adopted by the association pursuant to subsection 3-115(a) of this title which would have become due in the absence of acceleration during the six months immediately preceding institution of an action to enforce the lien. This subsection does not affect the priority of mechanics' or materialmen's liens, or the priority of liens for other assessments made by the association. A lien under this section is not subject to the provisions of chapter 3 of Title 27.

(c) Unless the declaration otherwise provides, if two or more associations have liens for assessments created at any time on the same property, those liens have equal priority.

(d) Recording the declaration constitutes record notice and perfection of the lien. No further recording of any claim or lien for assessment under this section is required.

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

(f) This section does not prohibit an action to recover sums for which subsection (a) of this section creates a lien or an association from taking a deed in lieu of foreclosure.

(g) A judgment or decree in any action brought under this section shall include an award of costs and reasonable attorney fees to the prevailing party.

(h) The association, upon written request, shall furnish to a unit owner a statement of the amount of unpaid assessments against that unit. If the unit owner's interest is real estate, the statement shall be recordable. The statement shall be provided within 10 business days after receipt of the request and is binding on the association, the executive board and every unit owner.

(i) The association's lien may be foreclosed pursuant to section 4531a of Title 12 in which case the association shall notify all the lienholders of the affected unit of its action.

(j) A unit owner is not exempt from liability for payment of common expenses by a waiver of the use or enjoyment of any of the common elements or by abandonment of the unit.

(k) In an action by an association to collect assessments or to foreclose a lien for unpaid assessments, the court may appoint a receiver to collect all sums alleged to be due and owing to a unit owner before commencement or during pendency of the action. The court may order the receiver to pay any sums held by the receiver to the association during pendency of the action to the extent of the association's common expense assessments based on a periodic budget adopted by the association pursuant to section 3-115 of this title. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2001, No. 46, § 13.)