§ 47A-22. Liens for unpaid common expenses; recordation; priorities; foreclosure. - North Carolina Statutes

§47A‑22.  Liens for unpaid common expenses; recordation; priorities;foreclosure.

(a)        Any sum assessed bythe association of unit owners for the share of the common expenses chargeableto any unit, and remaining unpaid for a period of 30 days or longer, shallconstitute a lien on such unit when filed of record in the office of the clerkof superior court of the county in which the property is located in the mannerprovided therefor by Article 8 of Chapter 44 of the General Statutes. Upon thesame being duly filed, such lien shall be prior to all other liens except thefollowing:

(1)        Assessments, liensand charges for real estate taxes due and unpaid on the unit;

(2)        All sums unpaid ondeeds of trust, mortgages and other encumbrances duly of record against theunit prior to the docketing of the aforesaid lien.

(3)        Materialmen's andmechanics' liens.

(b)        Provided the sameis duly filed in accordance with the provisions contained in subsection (a) ofthis section, a lien created by nonpayment of a unit owner's pro rata share ofthe common expenses  may be foreclosed by suit by the manager or board ofdirectors, acting on behalf of the unit owners, in like manner as a deed oftrust or mortgage of real property. In any such foreclosure the unit ownershall be required to pay a reasonable rental for the unit, if so provided inthe bylaws, and the plaintiff in such foreclosure shall be entitled to theappointment of a receiver to collect the same. The manager or board ofdirectors, acting on behalf of the unit owners shall have power, unlessprohibited by the declaration, to bid in the  unit at foreclosure sale, and toacquire and hold, lease, mortgage and convey the same. A suit to recover amoney judgment for unpaid common expenses shall be maintainable without foreclosingor waiving the lien securing the same.

(c)        Where the mortgageeof a first mortgage of record or other purchaser of a unit obtains title to theunit as a result of foreclosure of the first mortgage, such purchaser, hissuccessors and assigns, shall not be liable for the share of the commonexpenses or assessments by the association of unit owners chargeable to suchunit  which became due prior to the acquisition of title to such unit by suchpurchaser. Such unpaid share of common expenses or assessments shall be deemedto be common expenses collectible from all of the unit owners including suchpurchaser, his successors and assigns. (1963, c. 685, s. 22.)