New Jersey 45:22A-44.1: HOA Liens and Mortgage Priority

Quick Answer

N.J.S.A. 45:22A-44.1 gives an association in a planned real estate development (which reaches HOAs, and also condominiums under the Act's definition, per our inventory) a lien for unpaid assessments, effective when a signed, verified claim of lien is recorded in the county. It sets a limited priority over earlier mortgages of up to six months of customary assessments, renewed annually. It came from P.L.2019, c.68.

At a Glance

What the Law Says

The lien (subsection a.)

• The lien covers unpaid assessments "duly made," other money duly owed, interest, late fees, fines, expenses and reasonable attorney's fees incurred in collection, after "proper notice" to the owner.
• An association "shall not record a lien in which the unpaid assessment consists solely of late fees."
• The lien is effective from recording of a claim of lien stating the unit description, record owner's name, amount due and due date. It may include only sums due and payable at recording, and must be "signed and verified by an officer or agent of the association."
• On full payment the payer is entitled to a recordable satisfaction of lien.
• In general the lien is subordinate to past-due property taxes, mortgages on the unit and liens recorded earlier, except as subsection b. provides.

Limited priority (subsection b.)

• Priority over prior mortgages and other liens (not municipal or federal tax liens) is limited to the aggregate "customary assessment" for the six months before recording, "cumulatively renewed on an annual basis as necessary."
• The lien must be recorded before the association receives a summons and complaint to foreclose the mortgage, or before a lis pendens is filed.
• With several liens, total priority cannot exceed the six-month amount; earlier recordings use it first.
• Priority expires on the first day of the 60th month after recording (apart from the annual renewal), and a lien does not get priority if an earlier association lien already obtained it over the same mortgage for 60 months.
• When recording a lien that may get priority, the association must notify in writing any holder of a first mortgage; a good-faith effort that fails to identify the holder counts as substantial compliance.
• "Assessment" for this purpose means periodic payments for regular operating and common area expenses under the annual budget, and excludes reserves for contingencies, late charges, penalties, interest and collection costs.

Other subsections

• c.: on a voluntary conveyance, grantor and grantee are jointly and severally liable for unpaid assessments up to conveyance; the grantee alone is liable for those accruing while owner.
• d.: the association must provide a certificate of unpaid assessments "within 10 days after request."
• e.: a first-mortgage holder or other buyer that takes title by foreclosure of the first mortgage is not liable for prior assessments; remaining unpaid common expenses and assessments, other than late fees or fines, are treated as common expenses collectible from the other owners.
• f.: liens may be foreclosed by suit in the association's name like a mortgage; the association may bid at the sale unless the documents prohibit it; a money-judgment suit does not waive the lien.

What This Means in Practice

Boards

The details of the claim of lien matter: only sums due when recorded, a verified signature, and no lien for late fees alone. Our reading is that the first-mortgage notice and the recording-date rule in subsection b. are the steps most likely to be missed, so build them into your lien checklist and ask counsel to confirm.

Owners and buyers

Ask for the paid-assessment certificate before closing. Under subsection d. it is due within 10 days of request, and a person who relies on it is limited to the amounts it shows.

What the section does not say

It does not state a dollar threshold for filing a lien, a statute of limitations, or a notice period for "proper notice." Those are open questions for counsel.

Timeline

Related New Jersey Law

• P.L.2019, c.68: assessment lien priority
• N.J.S.A. 46:8B-21: condo assessment liens
• P.L.2020, c.100: pre-PREDFDA assessments and void liens
• Highland Lakes v. Franzino (2006)
• New Jersey HOA laws and regulations guide

Where We Stand

Our position: we support the section, with a caveat. A recorded lien with limited mortgage priority gives associations a real collection tool, and the 10-day certificate rule keeps closings moving. The caveat is that the technical steps (verified claim, first-mortgage notice, recording before foreclosure filings, no late-fee-only liens) leave little room for error. The tip: keep a lien file for each account with the notice, the recorded claim and the mortgage-holder notice, and send every lien through counsel. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.

Board Checklist

• Confirm each delinquency includes more than late fees before a lien is considered.
• Send and keep proof of the written notice to the owner.
• Have an officer or agent sign and verify each claim of lien.
• Record only amounts due and payable on the recording date.
• Notify the first mortgage holder in writing when recording.
• Calendar the 60-month priority date and the annual renewal.
• Answer certificate requests within 10 days.
• Separate reserve contributions from the "customary assessment" amounts when computing priority; confirm with counsel.

Frequently Asked Questions

Can an HOA lien be filed for late fees only?

No. The section says an association "shall not record a lien in which the unpaid assessment consists solely of late fees."

How much priority over the mortgage does the lien get?

Limited priority up to the customary assessments for the six months before recording, renewed annually, subject to the other conditions in subsection b.

How long does the priority last?

It expires on the first day of the 60th month after recording, apart from the annual renewal, under paragraph b.(4).

Does a foreclosure buyer owe the old assessments?

Not under subsection e. for amounts due before title was acquired by foreclosure of the first mortgage. The unpaid balance, other than late fees or fines, is treated as a common expense collectible from the remaining owners.

How fast must the association issue a payoff certificate?

Within 10 days after request, under subsection d.

Does the section apply to cooperatives?

No, subsection g. excludes them.

Where This Comes From

We read the full text of N.J.S.A. 45:22A-44.1 in the 2025 New Jersey Revised Statutes on Justia. The statement that planned real estate developments include condominiums comes from our inventory notes on the PREDFDA definition, not from this section.

How APM Helps

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.