## Facts

- Woodview Condominium Association, Inc. managed a 34-unit condominium and funded common-element maintenance through monthly assessments to unit owners.
- Kevin Shanahan initially owned two units, fell behind on association fees, and later paid arrears.
- In October 2000, Shanahan conveyed the units to Tomas Pratts, Jr., taking back a purchase-money mortgage.
- After the transfer, Pratts failed to pay monthly assessments; the Association recorded an assessment lien for unpaid charges.
- In September 2001, Pratts defaulted on the mortgage, and Shanahan took possession and control of the units as a mortgagee in possession.
- While in possession, Shanahan rented the units to third parties and paid off existing assessment liens but did not pay ongoing monthly assessments accruing during his possession.
- In March 2005, Shanahan filed a foreclosure action against Pratts to obtain title.
- In April 2005, the Association sued Pratts and Shanahan in the Law Division to recover delinquent condominium fees and charges.

## Issues

1. Whether a mortgagee in possession, lacking legal title, is personally liable to a condominium association for delinquent common charges attributable to services furnished during the mortgagee’s possession and control.
2. Whether the trial court correctly calculated and allocated the monetary judgment for delinquent assessments among the parties and relevant time periods.

## Decision

- The Appellate Division held that a mortgagee in possession is personally liable for condominium common charges arising from services furnished during the period of the mortgagee’s possession and control, even without legal title.
- The court affirmed the liability determination against Shanahan for charges tied to services during his possession.
- The court vacated the amount of the judgment and remanded for a proper determination of the sums due consistent with the liability rule.

## Legal Principles

- A mortgagee in possession assumes obligations similar to an owner for expenses and duties that accrue during the mortgagee’s possession and control of the property.
- Personal liability for condominium assessments may attach based on possession, control, and receipt of the benefits of condominium services, not solely on record ownership.
- The mortgagee-in-possession liability recognized is temporally limited to charges attributable to services furnished during the mortgagee’s period of possession.
- When the record does not support a clear allocation of assessments by time period and responsible party, the proper remedy is to vacate the money judgment and remand for recalculation.

## Conclusion

The Appellate Division ruled that a mortgagee in possession who controls and rents condominium units can be personally liable for common charges for services provided during that possession, but it required the trial court to recompute the amount owed on a clearer record and allocation by time period.


Woodview Condominium Ass’n, Inc. v. Shanahan, 391 N.J. Super. 170 (App. Div. 2007)