(a) The liability of a unit owner in an unincorporated association for a judgment against the association shall be limited to the percentage of the judgment equal to the undivided percentage ownership of the unit owner in the common elements.
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Terms Used In Tennessee Code 66-27-416

  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(b) If the association has granted a security interest in the common elements to a creditor of the association pursuant to § 66-27-412, the holder of that security interest shall exercise its right against the common elements only.
(c) Whether perfected before or after the creation of the condominium, if a lien other than a deed of trust or mortgage, including a judgment lien or lien attributable to work performed or materials supplied, becomes effective against two (2) or more units, the unit owner of an affected unit may pay to the lienholder the amount of the lien attributable to the owner’s unit, and the lienholder, upon receipt of payment, shall promptly deliver a release of the lien covering that unit. The amount of the payment must be proportionate to the ratio that the unit owner’s common expense liability bears to the common expense liabilities of all unit owners whose units are subject to the lien. After payment, the association may not assess or have a lien against that unit owner’s unit for any portion of the common expenses incurred in connection with that lien.
(d) A judgment against the association must be indexed in the name of the condominium and the association.
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