Lien for assessments - 68 Pa. Cons. Stat. § 3315
§ 3315. Lien for assessments.
(a) General rule.--The association has a lien on a unit for
any assessment levied against that unit or fines imposed against
its unit owner from the time the assessment or fine becomes due.
The association's lien may be foreclosed in like manner as a
mortgage on real estate. A judicial or other sale of the unit in
execution of a common element lien or any other lien shall not
affect the lien of a mortgage thereon, except the mortgage for
which the sale is being held, if the mortgage is or shall be
prior to all other liens upon the same property except those
liens identified in 42 Pa.C.S. § 8152(a) (relating to judicial
sale as affecting lien of mortgage) and liens for condominium
assessments created under this section. Unless the declaration
otherwise provides, fees, charges, late charges, fines and
interest charged pursuant to section 3302(a)(10), (11) and (12)
(relating to powers of unit owners' association) and reasonable
costs and expenses of the association, including legal fees,
incurred in connection with collection of any sums due the
association by the unit owner or enforcement of the provisions
of the declaration, bylaws, rules or regulations against the
unit owner are enforceable as assessments under this section. If
an assessment is payable in installments and one or more
installments is not paid when due, the entire outstanding
balance of the assessment becomes effective as a lien from the
due date of the delinquent installment.
(b) Priority of lien.--
(1) General rule.--A lien under this section is prior to
all other liens and encumbrances on a unit except:
(i) Liens and encumbrances recorded before the
recordation of the declaration.
(ii) (A) Mortgages and deeds of trust on the unit
securing first mortgage holders and recorded before the
due date of the assessment, if the assessment is not
payable in installments, or the due date of the unpaid
installment, if the assessment is payable in
(B) Judgments obtained for obligations secured
by mortgages or deeds of trust under clause (A).
(iii) Liens for real estate taxes and other
governmental assessments or charges against the unit.
(2) Limited nondivestiture.--The association's lien for
assessments shall be divested by a judicial sale of the unit:
(i) As to unpaid common expense assessments made
under section 3314(b) (relating to assessments for common
expenses) that come due during the six months immediately
preceding the date of a judicial sale of a unit in an
action to enforce collection of a lien against a unit.
(ii) As to unpaid common expense assessments made
under section 3314(b) other than the six months
assessment referred to in subparagraph (i), in the full
amount of these unpaid assessments, whether or not the
proceeds of the judicial sale are adequate to pay these
assessments. To the extent the proceeds of the sale are
sufficient to pay some or all of these additional
assessments, after satisfaction in full of the costs of
the judicial sale, and the liens and encumbrances of the
types described in paragraph (1) and the unpaid common
expense assessments that come due during the six-month
period described in subparagraph (i), they shall be paid
before any remaining proceeds may be paid to any other
claimant, including the prior owner of the unit.
(3) Monetary exemption.--The lien is not subject to the
provisions of 42 Pa.C.S. § 8123 (relating to general monetary
(c) Notice and perfection of lien.--Subject to the
provisions of subsection (b), recording of the declaration
constitutes record notice and perfection of the lien.
(d) Limitation of actions.--A lien for unpaid assessments is
extinguished unless proceedings to enforce the lien are
instituted within three years after the assessments become
(e) Other remedies preserved.--Nothing in this section shall
be construed to prohibit actions or suits to recover sums for
which subsection (a) creates a lien or to prohibit an
association from taking a deed in lieu of foreclosure.
(f) Costs and attorney's fees.--A judgment or decree in any
action or suit brought under this section shall include costs
and reasonable attorney's fees for the prevailing party.
(g) Statement of unpaid assessments.--The association shall
furnish to a unit owner upon written request a recordable
statement setting forth the amount of unpaid assessments
currently levied against his unit and any credits of surplus in
favor of his unit pursuant to section 3313 (relating to surplus
funds). The statement shall be furnished within ten business
days after receipt of the request and is binding on the
association, the executive board and every unit owner.
(h) Application of payments.--Unless the declaration
otherwise provides, any payment received by an association in
connection with the lien under this section shall be applied
first to any interest accrued by the association, then to any
late fee, then to any costs and reasonable attorney fees
incurred by the association in collection or enforcement and
then to the delinquent assessment. The foregoing shall be
applicable notwithstanding any restrictive endorsement,
designation or instructions placed on or accompanying a payment.
(Dec. 18, 1992, P.L.1279, No.168, eff. 45 days; Nov. 30, 2004,
P.L.1509, No.191, eff. 60 days)
2004 Amendment. Act 191 amended subsec. (b) and added
Cross References. Section 3315 is referred to in section
3102 of this title.
Section: 3308 3309 3310 3311 3312 3313 3314
3315 3316 3317 3318 3319 3320 3401 3402