1. (a) All sums assessed by the association of co-owners but unpaid for the share of the common expenses chargeable to any condominium unit constitute a lien on the unit effective at the time of assessment. The lien has priority over all other liens except:

   1. (1) tax liens on the condominium unit in favor of any:

      1. (A) assessing unit; or
      2. (B) special district; and
   2. (2) all sums unpaid on a first mortgage of record.

2. (b) A lien under subsection (a) may be filed and foreclosed by suit by the manager or board of directors, acting on behalf of the association of co-owners, under laws of Indiana governing mechanics' and materialmen's liens. In any foreclosure under this subsection:

   1. (1) the condominium unit owner shall pay a reasonable rental for the unit, if payment of the rental is provided in the bylaws; and
   2. (2) the plaintiff in the foreclosure is entitled to the appointment of a receiver to collect the rental.

3. (c) The manager or board of directors, acting on behalf of the association of co-owners, may, unless prohibited by the declaration:

   1. (1) bid on the condominium unit at foreclosure sale; and
   2. (2) acquire, hold, lease, mortgage, and convey the condominium unit.
4. (d) Suit to recover a money judgment for unpaid common expenses is maintainable without foreclosing or having the lien securing the expenses.

5. (e) If the mortgagee of a first mortgage of record or other purchaser of a condominium unit obtains title to the unit as a result of foreclosure of the first mortgage, the acquirer of title, or the acquirer's successors and assigns, is not liable for the share of the common expenses or assessments by the association of co-owners chargeable to the unit that became due before the acquisition of title to the unit by the acquirer. The unpaid share of common expenses or assessments is considered to be common expenses collectible from all of the co-owners, including the acquirer or the acquirer's successors and assigns.

   [Pre-2002 Recodification Citation: 32-1-6-24.]

As added by P.L.2-2002, SEC.10.