Condo Media - July 2018 - 57

If your association is currently lacking
a resolution regarding the lien enforcement procedure, set a goal to remedy that
situation! Such resolutions communicate
important ground rules to unit owners.
They assist the board (and property
management) with treating all cases in
consistent fashion. Their existence helps
to deter owners from delinquency and
also makes it easier for the association to
act should delinquencies occur.
The most important aspect of the resolution is the institution of timely action.
As debt ages, it gets riskier. Further, the
New Hampshire Condominium Act (RSA
356-B, the "Act") requires a Memorandum of Lien to be recorded at the Registry
of Deeds within six months of the time
an unpaid assessment was due. The Act
also limits an association's priority lien
(should the unit have a first mortgage
dated Jan. 1, 2011, or more recent) to a
maximum of six months of assessments.
Further, unlike some other states, the
New Hampshire Condominium Act
explicitly limits associations to one outstanding priority lien at a time. In short,
starting lien enforcement late can cost
you. A best practice is to set the date
for initiation of the in-house process at
45 days' delinquency.

Another best practice is for the association's letter to include an explicit
statement that, unless resolved within
the time allotted, the matter will be
referred to legal counsel without further
notice. This makes the consequences of
a unit owner's failure to respond clear at
the outset and paves the way for the association to proceed with further action
if necessary.
A sensible aspect of a resolution is
specific reference to any late fees, interest, or fines that will be charged (and
when) as a result of delinquency. Such
items must be imposed in accord with
the board's authority under the governing documents. In addition, it is a fair

warning to include reference to the fact
that, in accord with the Act, a delinquent
owner will be assessed the association's
legal fees and costs relative to the lien
enforcement process.
In sum, a lien enforcement resolution
provides clear and fair communication
to unit owners while assisting the board
with a portion of its duties and the protection of its financial well-being.
■ GARY M. DADDARIO, ESQ., CCAL,
IS A PARTNER WITH THE LAW FIRM OF
WINER & BENNETT, LLP.

If your association is
currently lacking a
resolution regarding
the lien enforcement
procedure, set a goal to
remedy that situation!
I recommend that an association send
at least one communication aimed at
resolving the situation prior to referring
to legal counsel. So, if the association's
policy is to activate a delinquent account
at 45 days and the first action is for the
association to send a letter, a unit owner
may be afforded 15 days to resolve the
situation. At that point, the delinquency
will be at the 60-day point if unresolved.
This is the point at which the Act allows
the start of the legal process.
July 2018 CONDOMEDIA

57
Condo Media - July 2018

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