If you’re a landlord renting out a condo in Missouri, you need to understand a key risk that can cost you, even if your mortgage is current. Missouri Statute 448.3-116 gives the condo association an automatic lien for unpaid assessments or fines. This lien attaches from the moment the debt becomes due and can be foreclosed like a mortgage. And yes, this applies even when the tenant is the one supposed to be paying the fees.
The statute goes further. If the unit owner is more than 60 days delinquent on assessments, the association has the right to demand that the tenant start paying rent directly to the association until the account is brought current. The association must make this demand in writing and send a copy to the owner. If the tenant fails to comply, the association can issue notice and proceed with eviction under Chapter 534 of Missouri law, even though the tenant is not behind on rent to the landlord.
This means a landlord could lose rent income to the association and still face vacancy risk if the tenant is evicted. Additionally, the association can enforce the lien in court or through a power of sale. While certain prior liens and mortgages may take precedence, the statute provides the association with limited priority over some loans for up to six months of past-due assessments. Ignoring these risks could lead to foreclosure even if your loan is current and you’re unaware of the missed condo fees.
In short, make sure assessments are being paid, and monitor them even if your lease says the tenant is responsible. Associations have strong rights under Missouri law, and ignoring them could result in real consequences.
This article is for informational purposes only and does not constitute legal advice. For legal advice, please consult an attorney.
