Arizona Condominium Act — Assessment Lien

33-1256 - Common expense liens; priority; mechanics' and materialmen's liens; notice; applicability 33-1256. Common expense liens; priority; mechanics' and materialmen's liens; notice; applicability A. The association has a common expense lien on a unit for any assessment levied against that unit from the time the assessment becomes due. The association's common expense lien may be foreclosed in the same manner as a mortgage on real estate but may be foreclosed only if the unit owner has been and remains delinquent in the payment of any assessment or portion of the assessment for a period of eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed. For any special assessment with an initial value of $10,000 or more, only the eighteen-month delinquency threshold applies. The association board of directors shall exercise reasonable efforts to communicate with the unit owner and offer a reasonable payment plan before filing a foreclosure action. If an assessment is payable in installments, the full amount of the assessment is a common expense lien from the time the first installment of the assessment becomes due. B. Notwithstanding any provision in the condominium documents, unit owner expenses are not enforceable as common expense liens under this section. The association has a judgment lien for unit owner expenses after the entry of a judgment in a civil suit for those unit owner expenses 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 judgment lien for unit owner expenses may not be foreclosed and is effective only on conveyance of any interest in the real property. C. A common expense lien 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 before the common expense 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. D. Subsection C of this section does not affect the priority of mechanics' or materialmen's liens. The common expense lien under this section is not subject to chapter 8 of this title. E. Unless the declaration otherwise provides, if two or more associations have common expense liens created at any time on the same real estate, those common expense liens have equal priority. F. Recording the declaration constitutes record notice and perfection of the common expense lien. Further recordation of any claim of common expense lien under this section is not required. G. A common expense lien is extinguished unless proceedings to enforce the common expense lien are instituted within six years after the full …

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