Unpaid assessments; lien
Sec. 3. (a) All sums assessed by the association of co-owners but
unpaid for the share of the common expenses chargeable to any
condominium unit constitute a lien on the unit effective at the time
of assessment. The lien has priority over all other liens except:
(1) tax liens on the condominium unit in favor of any:
(A) assessing unit; or
(B) special district; and
(2) all sums unpaid on a first mortgage of record.
(b) A lien under subsection (a) may be filed and foreclosed by suit
by the manager or board of directors, acting on behalf of the
association of co-owners, under laws of Indiana governing
mechanics' and materialmen's liens. In any foreclosure under this
subsection:
(1) the condominium unit owner shall pay a reasonable rental
for the unit, if payment of the rental is provided in the bylaws;
and
(2) the plaintiff in the foreclosure is entitled to the appointment
of a receiver to collect the rental.
(c) The manager or board of directors, acting on behalf of the
association of co-owners, may, unless prohibited by the declaration:
(1) bid on the condominium unit at foreclosure sale; and
(2) acquire, hold, lease, mortgage, and convey the condominium
unit.
(d) Suit to recover a money judgment for unpaid common
expenses is maintainable without foreclosing or having the lien
securing the expenses.
(e) If the mortgagee of a first mortgage of record or other
purchaser of a condominium unit obtains title to the unit as a result
of foreclosure of the first mortgage, the acquirer of title, or the
acquirer's successors and assigns, is not liable for the share of the
common expenses or assessments by the association of co-owners
chargeable to the unit that became due before the acquisition of title
to the unit by the acquirer. The unpaid share of common expenses or
assessments is considered to be common expenses collectible from
all of the co-owners, including the acquirer or the acquirer's
successors and assigns.
As added by P.L.2-2002, SEC.10.
Last modified: May 24, 2006