[WSBARP] No Super Priority Lien for Non Condo HOAs? RCW 64.34.364Inapplicable.

Fri Feb 24 16:52:24 PST 2017

Hi Rob,

Liens for non-condominium homeowners associations are common law liens based strictly on the terms of the recorded declaration of covenants.  Typically those covenants contain a provision that subordinates the association’s lien to the lien of either first mortgages or all mortgages.  Absent that subordination provision it is my opinion that the lien would relate back to the date of recording of the covenants and therefore prime any mortgage.  It is also my opinion that no mortgage lenders would lend on those properties.  There are no statutory provisions dealing with non-condominium homeowners association liens.  As you rightly point out, RCW 64.34 is inapplicable.  See RCW 64.34.010.

Best regards,

Jim Strichartz 

Jim Strichartz

Attorney

Fellow, College of Community Association Lawyers

Law Offices of James L. Strichartz

201 Queen Anne Avenue North, Suite 400

Seattle, WA 98109-4824

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rowley, Rob
Sent: Friday, February 24, 2017 4:39 PM
To: WSBA RPPT
Subject: [WSBARP] No Super Priority Lien for Non Condo HOAs? RCW 64.34.364Inapplicable.

Assume standard non-condo residential homeowners association records lien against one of its lots for an owner who never pays.  Lien grows in excess of six years and association starts and abandons lien foreclosure.  Big bank forecloses on underlying deed of trust of the recalcitrant homeowner and sells at auction to real estate investor.  Homeowners association wants to collect in excess of six years.  I looked at the CCRs and see nothing allowing for survival of the lien post foreclosure. Real estate investor swears up and down the Association is barred to the six months as all of his fellow investors are saying the same thing.  I know that the balance beyond six years would be barred by the contract statute of limitations.

I'm aware of a section under the Condo Act dealing with a six-month limitation on dues that an Association can to collect RCW 64.34.364. I can't find anything similar for a non-condo homeowners association.

When I ask my favorite title office below is her response.  Even she got it confused.

"Hi Rob!  Received your message regarding “super liens” – you may want to check out RCW 64.34.364 – it is my understanding that those priority liens need to be established in the CCR’s to be legally effective to survive a foreclosure.  However, from a title perspective, we tend to be cautious about them and if there is an HOA lien recorded, we will continue to show it after the sale and make the new owner cure or negotiate a release with the HOA if the priority standing is unclear.  I think from a “legal” perspective, the RCW above lays out the conditions and stipulations.  Hope this helps and hope you have a great weekend!"

Suggestions?

Robert R. Rowley, Attorney at Law

7 S. Howard St., Suite 218

Spokane, WA  99201

T: (509) 252-5074

C: (509) 994-1143

F: (509) 928-3084

E: rob at rowleylegal.com

W: www.rowleylegal.com <http://www.rowleylegal.com/> 

Practice concentrated on business, real estate and general legal matters in Washington and Idaho.

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