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Issue  19  Article  43
Published:  2/1/1997

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Planned Unit Development Homeowners’ Association Liens - A Word (or Two) of Caution
Ed Urban, Vice President and Corporate Counsel

A recorded planned unit development declaration will provide for an assessment lien securing the association for unpaid assessments. In one type of format, the lien will arise automatically when the assessment is not paid within a prescribed time period without a lien being filed with the clerk’s office. The only way to search a title properly is to read the declaration and realize this. When this format is used, other provisions of the declaration provide that a binding statement regarding assessments can be obtained from the association. This should be done. Under this format, a lien will probably relate back to the recording of the declaration, unlike a condominium association lien under G.S. 47C-3-116.

Under a different format used by other declarants, the lien will have priority only from filing, as under G.S. 47C-3-116 for condominiums. For additional reading, see E. Urban and G. Whitney, North Carolina Real Estate, Sec. 21-61 (Harrison Co. 1996).

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