A condo common charges lien in New York is the board of managers’ statutory lien on a unit for unpaid common charges. It ranks ahead of every other lien on the unit except real estate taxes, a first mortgage of record and a short list of government housing mortgages. That means it outranks second mortgages and home equity lines, even ones recorded years earlier. When a unit is sold, unpaid common charges are paid from the seller’s proceeds or by the buyer, so every condo closing needs a paid-to-date figure from the managing agent.
These rules come from the state Condominium Act, Real Property Law (RPL) Article 9-B, and apply in New York City, Westchester and the rest of the state. Only where the notice of lien is recorded differs by location.
Where the lien sits in line
Under RPL § 339-z, the board, acting for all unit owners, has a lien on each unit for unpaid common charges plus interest. It is prior to all other liens except:
- taxes on the unit in favor of any assessing unit;
- all sums unpaid on a first mortgage of record;
- subordinate mortgages of record held by listed agencies: the Job Development Authority, the Urban Development Corporation, the Division of Housing and Community Renewal, the Housing Trust Fund Corporation, the New York City Housing Development Corporation and, in New York City, HPD.
Everything else falls behind it regardless of recording date: a private second mortgage, a HELOC, a judgment against the owner, a mechanic’s lien. A second-mortgage lender is junior to the board’s lien by statute even though its mortgage was recorded first. The declaration of an exclusive non-residential condominium may go further and make the lien superior to all mortgages of record (§ 339-z).
A consolidated mortgage counts as one first mortgage. In Plotch v Citibank, N.A., 27 NY3d 477 (2016), a buyer at the board’s foreclosure sale took subject to the full $92,000 consolidated loan, not just the original $54,000 first mortgage, because the consolidation was recorded before the board’s lien with no intervening lien.
How the lien is filed and how long it lasts
Under RPL § 339-aa, the lien takes effect when a verified notice of lien is filed with the recording officer where the condominium declaration is filed. The notice identifies the unit, the record owner, and the amount, purpose and due date of the charges. If no notice has been filed within 60 days after the charges are due, any board member may file one.
- New York City (Manhattan, Brooklyn, Queens, Bronx): recorded with the City Register and visible in ACRIS as document type LOCC (Lien of Common Charges); a release appears as TOLCC (Termination of Lien of Common Charges), per the city’s ACRIS document control codes. See how to read ACRIS for title.
- Staten Island: recorded with the Richmond County Clerk, not in ACRIS.
- Westchester and the rest of the state: recorded with the County Clerk where the declaration is filed.
The lien lasts until the charges and interest are paid or six years from filing, whichever comes first (§ 339-aa).
Unpaid common charges when a condo is sold
On a sale or conveyance, “such unpaid common charges shall be paid out of the sale proceeds or by the grantee” (§ 339-z). So the arrears do not vanish when the unit changes hands. If the seller’s proceeds do not cover them, the buyer pays.
The statute protects both sides with a statement. Either party is entitled to a statement from the managing agent or board of the unpaid charges accrued against the unit, and neither is liable for, nor is the unit subject to a lien for, pre-closing charges above that amount (§ 339-z). In practice this is the paid-to-date letter the managing agent issues before closing. It should cover monthly charges, special assessments, late fees and any transfer fee due at closing.
An owner cannot escape common charges by abandoning the unit or not using the common elements (RPL § 339-x). Buyer liability on a sale comes from § 339-z, not § 339-x.
Right of first refusal waiver
RPL § 339-v(2)(a) lets by-laws govern the sale, leasing and conveyance of units, and most New York condo by-laws give the board a right of first refusal. The board issues a written waiver after reviewing the contract and the buyer’s application. The requirement comes from the building’s by-laws, not the statute, but title companies routinely ask for the waiver, and it usually appears with the paid-to-date letter as a closing condition on the title report.
How the title company handles it
| Item | Statute | Effect |
|---|---|---|
| Common charge lien | RPL 339-z | Behind taxes, 1st mortgage |
| Second mortgage, HELOC | RPL 339-z | Junior to condo lien |
| Agency subordinate mortgage | RPL 339-z | Senior to condo lien |
| Notice of lien | RPL 339-aa | Needed for lien to take effect |
| Lien duration | RPL 339-aa | 6 years or until paid |
| Sale or conveyance | RPL 339-z | Paid from proceeds or by buyer |
| Paid-to-date statement | RPL 339-z | Caps liability at stated amount |
| Abandonment | RPL 339-x | No escape from charges |
| Board foreclosure | RPL 339-aa | Like a mortgage; 90-day notice |
| First mortgage foreclosure | Case law | Board lien cut off |
The title search picks up any recorded notice of lien. Recorded or not, the title report will normally raise unpaid common charges as a requirement and ask for the paid-to-date letter at closing. Arrears on the letter are paid from the seller’s proceeds. A paid LOCC should be released of record, or it will keep appearing on searches. See NYC closing costs for how these items show up on the closing statement.
For first-mortgage lenders, the TIRSA Condominium Endorsement insures against loss from the priority of any lien for charges and assessments at date of policy over the insured first mortgage (endorsement form). A second-lien lender gets no comparable protection, because its loan is junior by statute.
When the board forecloses
The board may foreclose its lien in the same manner as a mortgage under Article 13 of the Real Property Actions and Proceedings Law (§ 339-aa). Since an amendment signed on October 16, 2025 (Chapter 433 of 2025, A3470), the board must give the unit owner at least 90 days’ written notice before starting the foreclosure, in at least 14-point type, sent to the unit and any other address of record, stating the intent to foreclose, the property address and the amount due. The change applies to actions commenced on or after that date. The same law added a parallel 90-day notice for incorporated homeowners’ associations in RPAPL § 2010.
The board can also sue the owner for a money judgment without waiving the lien, and unless the by-laws prohibit it, can bid at the sale and own the unit (§ 339-aa). A buyer at the board’s sale takes subject to taxes and the first mortgage, as Plotch shows.
When the first mortgage is foreclosed
A first mortgage foreclosure runs the other way. In Bankers Trust Co. v Board of Managers of Park 900 Condominium, 81 NY2d 1033 (1993), the Court of Appeals held that a foreclosure of a first mortgage is not a “sale or conveyance” under § 339-z. The board’s lien is subordinate to the first mortgage and, if the board is named in the action and the sale produces no surplus, it is extinguished. Because the sale is not a “sale or conveyance,” the § 339-z rule that arrears are paid from proceeds or by the grantee does not apply to the foreclosure buyer. Charges that accrue after the buyer takes title are the buyer’s.
If the board was left out of the foreclosure, its lien survives, as with any omitted junior lienor. That rule and the remedies for it are covered in which liens survive a New York foreclosure sale. For NYC auction due diligence, see checking liens before a NYC foreclosure auction.
What buyers, lenders and investors should check
- Search for a recorded notice of lien in ACRIS, or the County Clerk outside the four ACRIS boroughs, and check the filing date against the six-year limit.
- Order the paid-to-date letter early and confirm it covers assessments and fees. It caps what the buyer can be charged for.
- Read the by-laws for the right of first refusal, transfer fees and arrears provisions, and get the waiver.
- Second-lien lenders should treat the condo lien as senior and monitor common charge status.
- Auction bidders should identify which lien is being foreclosed: a first-mortgage sale cuts off a named board; a board’s sale leaves the first mortgage in place.
Official sources
- RPL Article 9-B (Condominium Act)
- RPL § 339-v: by-laws
- RPL § 339-x: liability for common charges
- RPL § 339-z: lien for common charges
- RPL § 339-aa: filing and foreclosure of the lien
- Assembly Bill A3470 of 2025 (Chapter 433): 90-day pre-foreclosure notice
- Bankers Trust Co. v Board of Managers of Park 900 Condominium, 81 NY2d 1033 (1993)
- Plotch v Citibank, N.A., 27 NY3d 477 (2016)
- NYC ACRIS Document Control Codes (NYC Open Data)
- TIRSA Condominium Endorsement form