FREQUENTLY ASKED QUESTIONS

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About AMS

Association Powers and Decision Making

Association Structure and Funds

Common Interest Developments (aka Homeowner Associations)

Director Election and Term

Enforcement and Disputes

Insurance and Liability

Maintenance, Alteration, and Defects

Meetings and Decisions

Mortgages and Liens

Mortgages and Liens

When an owner defaults on his/her mortgage, the lender is entitled to undertake a foreclosure procedure that ultimately results in an auction-like sale of the defaulting owner’s unit. The lender has no recourse against the association or any other owner. The purchaser at the foreclosure sale must comply with all the provisions of the governing documents, including the obligation to pay assessments. But a foreclosure sale purchaser is not responsible for any unpaid, pre-foreclosure assessments.

The term “mechanic’s lien” describes a document that can be recorded with county government by an unpaid contractor or construction materials supplier. The recording of a mechanic’s lien relating to a property effectively prevents the owner from selling or refinancing the property without either paying the bill or establishing in court that the lien is invalid. When construction is performed for an individual owner on his/her condominium unit or planned development lot, the owner’s contractors and construction materials suppliers can record mechanic’s liens against that owner’s unit or lot, but cannot record mechanic’s liens against the common area or against any other owner’s unit or lot. When construction is performed for the association on the common area, the association’s contractors and construction materials suppliers can record mechanic’s liens against the common area and every unit or lot. An owner who learns that a mechanic’s lien has been recorded against his/her unit or lot should consult an attorney.

Most lenders will refuse to make mortgage loans on homes within condominium projects and planned developments unless there are special provisions in the governing documents to protect them. These provisions are designed to ensure that the basic rights and responsibilities associated with the home at the time the loan is made cannot be easily changed. The lender is particularly concerned about changes that might devalue the home such as an increase in the home’s assessment allocation, the removal of a parking or storage space, or an uninsured or underinsured loss. Most lenders review the mortgage protection provisions of the governing documents before they approve a mortgage within a condominium project or planned development.

Officers, Managers, and Committees

Owner Assessments

Ownership and Possession

Use of Common Area

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