Real Estate Terms Dictionary
Lien of Common Charges
Definition of 'Lien of Common Charges'
A lien of common charges is a form of security interest placed against a condominium or coop unit when the owner fails to pay common monthly charges for several months in a row.
What does Lien of Common Charges mean:
When the owner of a condominium or coop unit falls behind with the monthly fees (or common charges), one of the first steps that the board or association takes is to record a lien against the property.
This gives the board the right over the property if the owner continues not to pay for an established period of time.
Once a lien is filed, the property is officially in pre-foreclosure. The period of time that can pass before a lien of common charges is recorded varies according to the board or association.
Here's a real-life example from one of the properties researched on PropertyShark:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.