Legal Question in Real Estate Law in Nevada
Default on Condominium Association dues
Our condo is in forclosure and the condo association dues have not been paid either. A recent letter from the condo association says that they will sell our condo for the back owed dues. With a mortgage still on the property, can they do that without paying off the mortgage people first?
2 Answers from Attorneys
Re: Default on Condominium Association dues
The condo association is in second position as a creditor. It will be squeezed out by the foreclosure as the first creditor will get the property outright.
Re: Default on Condominium Association dues
The answer is "no." The condo association holds a lien that is junior to the mortgage. Therefore, at any sale the mortgage and all fees thereon would be paid off first, then anything left over would go to the condo association. The only exception would be if the mortgage company signed an agreement called a subordination agreement or somehow the condo association had a recorded lien with greater priority than the mortgage. That is unlikely in my opinion.
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