1. What Must Be Resolved before Closing?
Unpaid common charges do not necessarily prevent a sale, but the transaction must address the outstanding obligation. Real Property Law §339-z provides for payment from the sale proceeds or by the buyer. Determine whether the available funds and proposed closing arrangements can cover the amount due.
Separate the Debt from a Recorded Lien
The condominium’s account ledger describes the claimed debt. A recorded common-charge lien affects the unit’s title and requires separate attention during the title review.
Under RPL §339-aa, the statutory lien becomes effective when a verified notice is filed with the appropriate recording officer. A title search showing no common-charge lien does not establish that your account is current. Review management records as well as the title report.
Check the Contract’S Allocation of Charges
The sale contract and rider may allocate monthly common charges, special assessments, and other expenses differently. For an assessment, check when it was adopted, when payment became due, and whether installments continue after closing.
The buyer’s agreement to bear an expense does not necessarily bind the condominium. Distinguish the contract’s allocation from the board’s rights under condominium law. Put the agreed payment arrangement into written closing instructions.
2. Obtain and Reconcile the Unpaid-Charges Statement
RPL §339-z entitles a seller or buyer to a statement from the manager or board identifying unpaid common charges accrued against the unit. When that statutory statement is furnished, neither the seller nor the buyer is liable, and the conveyed unit is not subject to a lien, for pre-conveyance unpaid common charges exceeding the amount stated. Request this statement expressly rather than relying on an informal account balance.
Match the Figures to Supporting Records
Obtain the statement early enough to investigate discrepancies. Confirm the unit identification, statement date, and any qualifications before comparing the figures with the underlying records.
| Record | What to Check |
|---|---|
| Unpaid-charges statement | Stated amount and obligations addressed |
| Account ledger | Charges, credits, and payment allocation |
| Bank records and receipts | Payments missing from the ledger |
| Assessment notices | Amounts, due dates, and installment terms |
| Payoff instructions | Recipient and payment-date calculation |
Unpaid-charges statement
- What to CheckStated amount and obligations addressed
Account ledger
- What to CheckCharges, credits, and payment allocation
Bank records and receipts
- What to CheckPayments missing from the ledger
Assessment notices
- What to CheckAmounts, due dates, and installment terms
Payoff instructions
- What to CheckRecipient and payment-date calculation
Ask for the basis of separately listed interest, late charges, legal fees, or administrative fees. Their recoverability may depend on the governing documents, applicable law, or a court order. An entry on the ledger does not establish that every charge is valid.
Update the Figures through Closing
If the closing date changes, request updated figures and reconcile payments made since the earlier statement. Confirm any daily interest calculation and the treatment of the current month’s charges.
The statutory statement is not a blanket release of future assessments or unrelated obligations. If it excludes particular items or conflicts with the ledger, have your attorney clarify the discrepancy and its legal effect before funds are distributed.
3. Resolve Disputed Amounts and Clear Any Recorded Lien
Identify the precise disagreement before proposing a solution. A missing payment credit may require an accounting correction, while a disputed assessment or fee may require examination of its legal basis. Send supporting records with a written correction request and ask for a revised statement.
Coordinate Payment and Discharge Documents
Use the unit’s property identifiers to check for recorded common-charge liens through ACRIS or, for Staten Island, the Richmond County Clerk. Compare any filed lien with the current payoff statement to clarify the obligations addressed by the payment and discharge documents.
For a filed lien, coordinate the payoff and discharge documentation with the board’s representative and title company. Under RPL §339-aa, full payment of the sums secured by the lien, including interest, entitles the owner to a duly executed and acknowledged instrument certifying payment. Confirm who will submit the appropriate discharge instrument for recording and retain the filing confirmation.
Use Escrow under an Accepted Agreement
An escrow agreement may allow a defined amount to remain with a designated holder while an issue is resolved. Specify the deposit, release conditions, dispute procedure, and treatment of remaining funds. Obtain any required acceptance from affected parties, which may include the buyer, lender, title insurer, and condominium. An escrow deposit does not itself discharge the lien or give the seller a unilateral right to close.
4. Keep Closing Dates Separate from Enforcement Deadlines
A pending sale does not suspend collection activity. Review demands, foreclosure notices, and court papers while negotiating a correction or payoff. Separately, check the sale contract’s adjournment provisions and document any agreed extension.
Understand the Foreclosure Notice Requirement
RPL §339-aa requires notice at least 90 days before the board commences a common-charge lien foreclosure proceeding. The notice must go to the property address and any other address of record. It must use fourteen-point type, identify the property and specific amount due, and state the intention to foreclose.
This requirement does not create a general payment grace period or extend the sale contract. The statute also permits a money-judgment action without foreclosing or waiving the lien. Identify the collection claim before assuming the foreclosure notice requirement applies.
Address Pending Litigation before Disbursement
A common-charge lien foreclosure generally proceeds in Supreme Court in the county where the property is located. Response requirements depend on the papers, service, and procedural posture. Negotiating with management does not replace a required court response.
If condominium litigation is pending, confirm whether settlement requires discontinuing the action and canceling any filed notice of pendency. Reconcile those documents with the payoff and lien discharge before closing.
5. Frequently Asked Questions
What if the Sale Proceeds Will Not Cover the Amount Due?
You may need to contribute additional funds or negotiate an arrangement acceptable to the affected parties. A reduced payoff requires agreement; an accepted purchase offer does not require the board to discount a valid debt. Prepare a net-proceeds calculation covering the mortgage, taxes, transaction expenses, and condominium balance.
Does a Waiver of the Right of First Refusal Confirm That My Account Is Paid?
Not by itself. A waiver generally addresses whether the holder will exercise a contractual right to purchase on the proposed terms. It serves a different purpose from an unpaid-charges statement or lien discharge. Check the actual documents and obtain each item required for the transaction.
23 Oct, 2026
