2007 Minnesota Statutes

515B.3-116 LIEN FOR ASSESSMENTS.
(a) The association has a lien on a unit for any assessment levied against that unit from the
time the assessment becomes due. If an assessment is payable in installments, the full amount
of the assessment is a lien from the time the first installment thereof becomes due. Unless the
declaration otherwise provides, fees, charges, late charges, fines and interest charges pursuant to
section 515B.3-102(a)(10), (11) and (12) are liens, and are enforceable as assessments, under
this section.
(b) A lien under this section is prior to all other liens and encumbrances on a unit except
(i) liens and encumbrances recorded before the declaration and, in a cooperative, liens and
encumbrances which the association creates, assumes, or takes subject to, (ii) any first mortgage
encumbering the fee simple interest in the unit, or, in a cooperative, any first security interest
encumbering only the unit owner's interest in the unit, (iii) liens for real estate taxes and other
governmental assessments or charges against the unit, and (iv) a master association lien under
section 515B.2-121(i). If a first mortgage on a unit is foreclosed, the first mortgage was recorded
after June 1, 1994, and no owner redeems during the owner's period of redemption provided by
chapter 580, 581, or 582, the holder of the sheriff's certificate of sale from the foreclosure of the
first mortgage shall take title to the unit subject to a lien in favor of the association for unpaid
assessments for common expenses levied pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and
(i) which became due, without acceleration, during the six months immediately preceding the first
day following the end of the owner's period of redemption. If a first security interest encumbering
a unit owner's interest in a cooperative unit which is personal property is foreclosed, the secured
party or the purchaser at the sale shall take title to the unit subject to unpaid assessments for
common expenses levied pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) which
became due, without acceleration, during the six months immediately preceding the first day
following either the disposition date pursuant to section 336.9-610 or the date on which the
obligation of the unit owner is discharged pursuant to section 336.9-622. This subsection shall not
affect the priority of mechanics' liens.
(c) Recording of the declaration constitutes record notice and perfection of any lien under
this section, and no further recordation of any notice of or claim for the lien is required.
(d) Proceedings to enforce an assessment lien shall be instituted within three years after the
last installment of the assessment becomes payable, or shall be barred.
(e) The unit owner of a unit at the time an assessment is due shall be personally liable to the
association for payment of the assessment levied against the unit. If there are multiple owners of
the unit, they shall be jointly and severally liable.
(f) This section does not prohibit actions to recover sums for which subsection (a) creates a
lien nor prohibit an association from taking a deed in lieu of foreclosure.
(g) The association shall furnish to a unit owner or the owner's authorized agent upon written
request of the unit owner or the authorized agent a statement setting forth the amount of unpaid
assessments currently levied against the owner's unit. If the unit owner's interest is real estate, the
statement shall be in recordable form. The statement shall be furnished within ten business days
after receipt of the request and is binding on the association and every unit owner.
(h) The association's lien may be foreclosed as provided in this subsection.
(1) In a condominium or planned community, the association's lien may be foreclosed in a
like manner as a mortgage containing a power of sale pursuant to chapter 580, or by action
pursuant to chapter 581. The association shall have a power of sale to foreclose the lien pursuant
to chapter 580.
(2) In a cooperative whose unit owners' interests are real estate, the association's lien shall be
foreclosed in a like manner as a mortgage on real estate as provided in paragraph (1).
(3) In a cooperative whose unit owners' interests in the units are personal property, the
association's lien shall be foreclosed in a like manner as a security interest under article 9 of
chapter 336. In any disposition pursuant to section 336.9-610 or retention pursuant to sections
336.9-620 to 336.9-622, the rights of the parties shall be the same as those provided by law,
except (i) notice of sale, disposition, or retention shall be served on the unit owner 90 days prior
to sale, disposition, or retention, (ii) the association shall be entitled to its reasonable costs and
attorney fees not exceeding the amount provided by section 582.01, subdivision 1a, (iii) the
amount of the association's lien shall be deemed to be adequate consideration for the unit subject
to disposition or retention, notwithstanding the value of the unit, and (iv) the notice of sale,
disposition, or retention shall contain the following statement in capital letters with the name
of the association or secured party filled in:
"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of association or
secured party) HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, CHAPTER
515B, TO FORECLOSE ON YOUR INTEREST IN YOUR UNIT FOR THE REASON
SPECIFIED IN THIS NOTICE. YOUR INTEREST IN YOUR UNIT WILL TERMINATE 90
DAYS AFTER SERVICE OF THIS NOTICE ON YOU UNLESS BEFORE THEN:
(a) THE PERSON AUTHORIZED BY (fill in the name of association or secured party)
AND DESCRIBED IN THIS NOTICE TO RECEIVE PAYMENTS RECEIVES FROM YOU:
(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
(3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR INCURRED;
PLUS
(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO (fill in
name of association or secured party) AFTER THE DATE OF THIS NOTICE; OR
(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN
THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP RIGHTS IN
YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU WILL LOSE ALL
THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL LOSE YOUR RIGHT TO
POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR RIGHT TO ASSERT ANY CLAIMS
OR DEFENSES THAT YOU MIGHT HAVE, AND YOU WILL BE EVICTED. IF YOU HAVE
ANY QUESTIONS ABOUT THIS NOTICE, CONTACT AN ATTORNEY IMMEDIATELY."
(4) In any foreclosure pursuant to chapter 580, 581, or 582, the rights of the parties shall
be the same as those provided by law, except (i) the period of redemption for unit owners shall
be six months from the date of sale or a lesser period authorized by law, (ii) in a foreclosure by
advertisement under chapter 580, the foreclosing party shall be entitled to costs and disbursements
of foreclosure and attorneys fees authorized by the declaration or bylaws, notwithstanding the
provisions of section 582.01, subdivisions 1 and 1a, (iii) in a foreclosure by action under chapter
581, the foreclosing party shall be entitled to costs and disbursements of foreclosure and attorneys
fees as the court shall determine, and (iv) the amount of the association's lien shall be deemed to
be adequate consideration for the unit subject to foreclosure, notwithstanding the value of the unit.
(i) If a holder of a sheriff's certificate of sale, prior to the expiration of the period of
redemption, pays any past due or current assessments, or any other charges lienable as
assessments, with respect to the unit described in the sheriff's certificate, then the amount paid
shall be a part of the sum required to be paid to redeem under section 582.03.
(j) In a cooperative, if the unit owner fails to redeem before the expiration of the redemption
period in a foreclosure of the association's assessment lien, the association may bring an action
for eviction against the unit owner and any persons in possession of the unit, and in that case
section 504B.291 shall not apply.
(k) An association may assign its lien rights in the same manner as any other secured party.
History: 1993 c 222 art 3 s 16; 1994 c 388 art 4 s 11; 1999 c 11 art 2 s 23; 1999 c 199 art 2
s 30; 2000 c 260 s 77; 2001 c 195 art 2 s 32; 2003 c 2 art 2 s 16; 2005 c 121 s 31