Arizona Planned Community Act — Assessment Lien

33-1807 - Common expense liens; priority; mechanics' and materialmen's liens; notice 33-1807. Common expense liens; priority; mechanics' and materialmen's liens; notice A. The association has a common expense lien on a property for any assessment levied against that property 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 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 member 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 community documents, member expenses are not enforceable as common expense liens under this section. The association has a judgment lien for member expenses after the entry of a judgment in a civil suit for those member 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 member 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 property except: 1. Liens and encumbrances recorded before the recordation of the declaration. 2. A recorded first mortgage on the property, a seller's interest in a first contract for sale pursuant to chapter 6, article 3 of this title on the property recorded before the common expense lien arising pursuant to subsection A of this section or a recorded first deed of trust on the property. 3. Liens for real estate taxes and other governmental assessments or charges against the property. 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 amount of the assessment becomes due. H. This …

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