Condo Association Management Blog

Title companies fault. You can always take it out of the sale of the home and have them cut a check. What kind of a title company and Realator did you have. Sue them.

Phyllis, why would it be the title company's fault? The title company acts in the interest of the buyer. When the owner bought the condo, his title company did a search to make sure the condo was free and clear of encumberances - and it probably was, which was why he was able to buy the condo in the first place.  
 
 
 
The lien was placed only a few months before the attemped sale of the condo, which was why it didn't come to light until right before the closing (probably discovered by the new buyer's title company).  
 
 
 
The is the condo association's fault. First, the condo association has a duty to pay their bills. Second, the condo association has a duty to inform owners of any liens of which they are aware, so that this kind of thing does not happen. This is part of the fiduciary duty owed to the owners. It is possible that they were unaware of the lien, but it is likely that the landscaping company gave them fair warning during attempts to collect on the debt. In that case, the condo association knew or at least had reason to know about lien. The condo association has a fiduciary duty to its owners, and failing to report a lien as a result of a failure to pay a debt (or at the very least, a failure to resolve a genuine dispute with the landscaper) amounts to a failure of that fiduciary duty.  
 
 
 
If I were you, I'd talk to the condo association board to figure out exactly why there is a lien on the property. If the lien is in dispute, then you need to pressure the board to resolve the issue (by pressure, I mean first ask nicely, and if that doesn't work, threaten to take legal action against them for failing to resolve the issue). You must get this resolved in order to sell your condo. 
 
 
 
In addition, you have damages that arose from their breach of fiduciary duty. Namely, because they didn't resolve the lien issue (and didn't even inform you for that matter!), you spent time and money preparing for a closing that was doomed from the beginning. You have a valid claim against them for your storage and moving costs, and any other costs that arose in preparation for the closing. You might even be able to assign a cost value to your failed sale, for which, if you care to prove that it would have proceeded "but for" the lien, they could be compelled to compensate you.  
 
 
 
Best of luck to you. 
 
 
 

I'm a lawyer in CT, working as legal officer with my association for the past few years. You are definitely in Rhode Island condo/real estate lawyer-land here.  
 
I think a lawyer would examine the lien to determine whether the buyer backed out on a pretext or not. I think the lawyer would check RI condo law to see if the Association was required to notify all unit owners once a money judgment was rendered against the Association. If so the lawyer likely can advise you of remedies nyou may have as a unit owner. 
 
The broader picture may involve the Association's need to release the lien in order to permit buyers to get financing and current owners to sell.  
 
My thought, then, is that you need to consult with a Rhode Island attorney with knowledge of state condo law and financing, purchase/sales of units (real estate law). I hope it works out for you.

in florida a person ( or entity ) that has a lein against them has the ability to put up a cash bond at the court house to release the lein until the issue is resolved. the leinor then has onr year to take action to enforce the issue ( lein ) otherwise the cash is returned to the poster. only my opinion, but i think the assn. has the responsibility to get this resolved asap.

You really need to talk to a real estate attorney. There are too many moving parts here to be able to give you a definitive answer. Here are few things to consider  
- When was this lean recorded? Was it before your escrow was opened or after? At some point a title company had to pull a preliminary title report. If there was a cloud on the report (lien) they had to notify the buyer who. This is where it gets interesting. If the title company didn't pull the report or didn't notify the buyer they might be at fault. If the buyer knew about the issue but didn't notify you it could be buyer's fault and you could be entitled to keep the deposit. 
 
This is just one of many questions that need to be asked here. 
 
Talk to an attorney

The condo assoc. put a lien on my condo over a year ago because i fell behind on condo fees. I moved on and now i'm able to purchase a condo in the same complex under a LLC. Can the condo assoc. place a lien on the new condo?

Yes and No. 
They can't file a lien on the new condo unless you fall behind in your dues on it, but .... They can sue you in a court (small claims or not) and after that record a lien on your new condo (Or any other properties you might have) to collect on the debt.