I. The Foreclosure Process for a Condominium Lien

1. Filing of a Lien:

 If a unit owner fails to pay common charges, assessments, or other fees, the condominium board may file a lien against the unit under Real Property Law (RPL) 339-z.

 The lien must be filed in the county clerk s office where the property is located.

 The condominium must send notice to the unit owner after recording the lien.

2. Commencement of Foreclosure Action:

 The condominium association can initiate a foreclosure action in Supreme Court under RPAPL Article 13, following procedures similar to mortgage foreclosures.

 A summons and complaint are filed, and the unit owner (defendant) is served.

3. Right to Cure:

 The unit owner has an opportunity to pay off the debt before the case proceeds, which can stop the foreclosure.

4. Litigation & Judgment:

 If the unit owner does not respond, the court may issue a default judgment.

 If the case is contested, litigation proceeds, and the court will determine whether foreclosure is warranted.

 If the condominium prevails, a judgment of foreclosure and sale is entered.

5. Foreclosure Sale:

 The unit is sold at a public auction, usually conducted by a court-appointed referee.

 The proceeds go toward satisfying the lien, with any surplus potentially returning to the unit owner.

II. Defenses to Foreclosure

Unit owners may raise several defenses, including:

1. Improper Notice or Filing Errors

 The condominium association must strictly comply with statutory notice requirements and filing procedures.

 If the lien was not properly recorded or the unit owner was not properly notified, foreclosure may be dismissed.

2. Disputed Debt or Miscalculations

 The unit owner may challenge the amount claimed, arguing that payments were made or that fees are excessive or unauthorized.

3. Breach of Fiduciary Duty by the Board

 If the condominium board is found to have acted in bad faith or failed to follow proper procedures, a court may set aside the foreclosure.

4. Unconscionability or Equitable Defenses

 The unit owner may argue that enforcement of the lien is unfair or oppressive, particularly if fraud, mistake, or coercion is involved.

5. Statute of Limitations

 The condominium association must commence foreclosure within six years of the default.

6. Failure to Offer Alternative Remedies

 If the board did not offer reasonable alternatives (e.g., a payment plan), a court may consider this in evaluating the case.