Washington Condo Associations Do Not Have Lien Priority Over Existing HOAs

The Washington Court of Appeals affirmed last month that a condominium association's lien for assessments was not entitled to statutory priority over similar assessments made pursuant to the covenants of an existing homeowners association within which the condominium was organized.  It based that decision on an exception to lien priority found in RCW 64.34.364(2)(a) for encumbrances on property before the recording of the declaration.  The appellate court concluded that the homeowners association's covenants are encumbrances because they consist of "restrictions that diminish the value of the condominium."  It affirmed the trial court's award of attorney fees to the homeowners association and awarded it appellate attorney fees as well.