Most condo buyers assume their mortgage lender sits first in line on the property — that whatever else happens, the bank's lien is senior. In Rhode Island, that assumption can be wrong. Rhode Island is one of a minority of true super-priority lien states, and the consequences are real: a condominium association's lien for as little as six months of unpaid dues can be foreclosed without a court and can extinguish a first mortgage entirely. For a buyer, that makes a delinquent neighbor and a poorly run collection process a genuine financial risk, not an abstraction.

How the Rhode Island association lien works

Under R.I. Gen. Laws §34-36.1-3.16, a Rhode Island condominium association has an automatic lien on a unit for assessments and fines from the moment they become due. Recording the declaration serves as record notice and perfection, so the association does not need to record a separate lien. Late charges, attorney's fees, fines, and interest are enforceable as part of the assessment obligation. The lien is extinguished only if enforcement is not begun within six years.

What makes Rhode Island unusual is the priority. The statute makes the association's lien prior to a recorded first mortgage to the extent of:

• Six months of common-expense assessments, based on the periodic budget (absent acceleration), plus
• Attorney's fees up to $2,500, plus
• Foreclosure costs up to $5,000 — publication, advertising, and auctioneer costs.

That is a $7,500 aggregate cap on fees and costs, sitting on top of the six months of assessments, all ahead of the first mortgage. Importantly, the super-priority amount excludes special assessments, late charges, fines, penalties, and interest (§34-36.1-3.16(b)(3)). Real-estate-tax liens and pre-declaration encumbrances remain superior to the association.

Non-judicial foreclosure makes it fast

Many states require an association to go to court to foreclose a lien. Rhode Island does not. Under §34-36.1-3.21, a condominium lien is foreclosed like a mortgage — by non-judicial power of sale. The association may sell the unit at public auction after mailing notice of the time and place of the sale to the defaulting owner and the first mortgagee by certified mail, return receipt requested, at least 20 days before publication. The sale "forever bars" the owner and those claiming through them, and the Act also permits a deed in lieu of foreclosure.

The combination — a small priority amount, no court required, and a fast power-of-sale process — is what gives the Rhode Island super-lien its bite.

The case that defines the risk: Twenty Eleven, LLC v. Botelho

In December 2015, the Rhode Island Supreme Court decided Twenty Eleven, LLC v. Botelho. In a 4–1 decision, the court held that a condominium association's super-priority lien foreclosure can extinguish a prior recorded first mortgage where the mortgagee neither advanced the delinquent assessments nor exercised its right of redemption. In plain terms: if a lender ignores the association's delinquency notice and does not step in to pay the small priority amount or redeem, a condo lien auction — sometimes for a modest sum — can wipe out the bank's much larger mortgage lien.

That ruling placed Rhode Island firmly among the true super-priority states. It is why sophisticated lenders in Rhode Island monitor association delinquency closely and advance dues to protect their position, and why title insurers treat Rhode Island condo diligence as unusually consequential.

The lender-notice mechanics

The statute builds in a notice step. When any portion of an owner's common-expense share is 60 or more days delinquent, the association must send a delinquency notice by certified and first-class mail to both the owner and the first mortgagee (§34-36.1-3.16(b)(4)). Failure to notify the mortgagee does not defeat lien priority for up to six months of assessments — but in that situation the priority amount excludes the fees and costs (§34-36.1-3.16(b)(5)). For a buyer, defective notice and redemption disputes are a live source of litigation in the wake of Botelho.

What this means for a buyer

You are not buying a delinquent unit in most cases — but you are buying into an association whose overall collection health affects you. High association-wide delinquency raises the odds of liens, special assessments to cover shortfalls, and the kind of contested foreclosures that consume an association's time and money. Here is what to check:

• Request the delinquency and lien ledger. Ask how many units are in arrears, by how much, and for how long.
• Confirm there is no active lien on the specific unit you are buying, and no prior lien-foreclosure history.
• Read the §34-36.1-4.09 resale certificate for any unpaid assessment owed by the seller — the certificate is binding, so you are not liable for amounts greater than it states.
• Read recent minutes for collection actions, write-offs, or foreclosure discussion.
• Loop in your title insurer and closing attorney early; Rhode Island's super-priority regime is exactly the situation title diligence exists to catch.

A well-run association with low delinquency carries little of this risk. But because the downside in Rhode Island is so severe — a first mortgage extinguished by a six-month lien — the delinquency picture deserves more attention here than in most states.

This article describes Rhode Island's condominium-lien statutes and Twenty Eleven, LLC v. Botelho in general terms and is not legal advice. For a specific unit, consult your closing attorney and title insurer. CondoSignal reviews the documents you upload and links every finding to the exact page, so you can see delinquency, lien, and assessment risk before your cancellation window closes.