Missouri condominium assessment liens give condominium associations leverage in collecting assessments. In Missouri, condominium associations carry the responsibility for maintaining, repairing, and replacing the common elements of the development, things like roofs, hallways, elevators, landscaping, and other areas shared by all unit owners. To cover these expenses, associations collect assessments from each unit owner. The process starts with the executive board. Each year, the board prepares a proposed budget based on the association’s anticipated costs for upkeep and repairs. Once the board adopts a proposed budget, it must provide a summary to all unit owners within 30 days. At the same time, the board must schedule a meeting for the owners to vote on whether to ratify the new budget and the corresponding assessments. If the unit owners do not ratify the proposal, the most recently approved budget remains in place until a new budget is properly ratified. This safeguard ensures that the association always has an enforceable budget in effect, even if owners reject a new proposal.

Missouri Condominium Assessment Liens

Unlike with homeowners associations, when a condominium owner falls behind on assessments, Missouri law gives the condominium association strong remedies. By statute, unpaid condominium assessments—and other charges authorized by the declaration or law—become an automatic lien against the delinquent unit. Missouri condominium assessment liens attach to the delinquent owner’s unit without the association having to file anything in court or with the recorder of deeds. However, the board should carefully review the bylaws of the association for any notices that must be provided to the delinquent unit owner, along with the other procedures related to Missouri condominium assessment liens. Missouri condominium associations technically have the right to foreclose on Missouri condominium assessment liens, just like a mortgage lender. But foreclosure is not always the best option. It can be expensive, unpopular among other owners, because it may reduce property values, and—because banks and other senior lienholders get paid first—the association might recover little or nothing from the sale.

Missouri Condominium Super Liens

Often, a more practical route is to sue the delinquent unit owner for the unpaid condominium assessments. If the association wins, the court will enter a judgment that typically includes the association’s reasonable attorney’s fees. With a judgment in hand, the association can garnish the owner’s wages, bank accounts, and other assets and have the sheriff seize and sell the owner’s property, including the unit, to satisfy the judgment. Also, if, along with a personal judgment against the unit owner, the association obtains a judgment for judicial foreclosure, then the association would be entitled to recover 6 months of assessments over a senior mortgage holder.

Rent Collection

Missouri law gives condominium associations another tool. Once assessments are more than 60 days overdue, the association can, without filing a lawsuit, demand that the tenant pay rent directly to the association instead of the landlord. If the tenant fails to comply, the association has the right to file a lawsuit to evict the tenant.

This article is for general informational purposes only. It is not intended as legal advice.

Sewell Law provides real estate and business law services. Please contact Michael Sewell at (314) 942-3232 or at michael@sewelllaw.net to discuss your legal matters.

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