How to Put a Lien on a Property When Tenants Owe Condo Association Dues in Tennessee

Liens can impact a homeowner's equity.

A condominium association lien can be filed with the public records by following a few simple procedures. The process differs from state to state, however in addition to abiding by lien laws of the state that the property is in, condominium associations are required to follow the by-laws adopted during the creation of the condominium. In Tennessee, a condominium association can file a lien against the property from the time that the assessment or fine becomes due. The lien that is created can then be foreclosed upon through the courts to obtain satisfaction of the judgment.

Instructions

1. Examine the bylaws of the condominium association to determine who is responsible for filing the lien, and the process that she must go through to perfect it. The procedures to file a condominium association lien are pretty standard, however to avoid any unexpected delays, check with the clerk's office of the Tennessee county where the property is located to determine what procedures are required to file the lien.

2. Gather all documentation proving non-payment of condominium association dues, as well as any and all correspondence between the association and the homeowner. Strengthen your case by showing proof that you made every effort to resolve the issue before bringing your complaint before the court.

3. Obtain a blank lien form from the clerk's office or use any examples provided within the condominium association documents. Fill out all necessary information, such as the debtor's name and address, the amounts owed, and the association's contact information. Notify the homeowner of your actions by mailing them a copy of the lien. Tennessee statutes stipulate that notice is considered served three days after the notification is sent to the homeowner.

4. File the forms with the clerk of the court and pay the necessary fees. The court will review the forms, and a hearing will be set. Check with the clerk to find out if you have to set the hearing, or if the court will do it on your behalf. At the hearing, both sides have the opportunity to present their case. Be advised that if the homeowner has been making efforts to pay the dues, even if it's much less than what he owes, the court may not agree to your lien and require that an agreement be placed of record instead.

Tips & Warnings

• If the homeowner disputes the condominium association dues, contact a real estate attorney for assistance.

• Unless a tenant has been accepted by the condominium association and has agreed to be responsible for payment of association dues, the condominium homeowner is responsible for payment and needs to be included in any suit proceedings.

References

• Real Estate Lawyers: Condo & Co-ops Lawyer
• Justia US Law: 2010 Tennessee Code Title 66 - Property Chapter 27 - Horizontal Property Part 4 - Tennessee Condominium Act of 2008 Unit Owners' Association 66-27-415 - Lien for assessments.
• Real Estate Lawyers: Property Liens
• Johnson & Freedman, LLC: Foreclosure FAQ