In lien law, timing is everything à or is it? If an HOAÆs statutory lien is perfected by recording its CC&RÆs, then an HOA lien should have priority over a subsequently recorded IRS income tax lien; but does it? When the IRS records an income tax lien, lien priority determinations under state law may be complicated by governed federal laws. This teleconference will discuss HOA lien priority according to state statutes, which may be preempted by the federal tax code. We will also discuss when the federal tax lien does not take priority over an HOA lien. Considering these respective lien rights, we will discuss an alternative analysis applying the choate doctrine under federal case law, which requires a comparative look at when association liens arise versus when an IRS tax lien is properly recorded. Because of a lack of legal opinions published in federal and state courts, litigation insurers and title examiners may not be fully equipped with the specific understanding of the differing laws and their application under differing situations when issuing title reports with lien priority determinations. Their analysis could be either exposing homeowner associations to erroneous litigation, or neglecting to include IRS liens in foreclosure actions when such liens could otherwise be foreclosed. When an IRS income tax lien appears on record for the real property in lien collection and foreclosure cases, you need to understand these respective lien rights, how to recalculate the HOAÆs lien balance if necessary and when to not pursue collections. This teleconference will discuss a uniform approach that you can utilize to resolve these competing lien claims in favor of HOAÆs û and perhaps get some ôgood lawö on the books for HOAÆs nationwide.

Faculty: Mark E. Lines, Shaw & Lines, LLC