Georgia statute reference · O.C.G.A. § 44-3-86
§ 44-3-86 - Leasehold condominiums; lessor's lien
Section 44-3-86 governs leasehold condominiums, where unit owners hold an estate for years rather than a fee. It bars the lessor from terminating a unit owner's leasehold while the condominium exists, and it secures unpaid rent with a lessor's lien that is foreclosed judicially. The lessor's lien is one of the four exceptions to the priority of the association's assessment lien under O.C.G.A. § 44-3-109.
Statute text reproduced from the Official Code of Georgia Annotated (O.C.G.A.); editorial summaries by the Common Elements editorial team. Not legal advice; not a substitute for Georgia counsel.
Current as of 2026-05-29.
What boards need to know
The lessor cannot pull the rug out. O.C.G.A. § 44-3-86(b)(1) provides that, once the declaration is recorded, no lessor who executed it and no successor-in-interest may terminate any part of a unit owner's leasehold while the condominium exists. If a lessor later acquires an interest in a unit, § 44-3-86(b)(2) keeps the estates separate rather than merging them.
Unpaid rent is secured by a lien. If the condominium instruments provide for it, § 44-3-86(b)(3) gives the lessor a lien on the unit for the owner's rent and other amounts, prior to all other liens except ad valorem taxes and any lien the instruments make superior. The lien secures collection costs and reasonable attorney's fees, and it may be foreclosed by action, judgment, and foreclosure in the same manner as any other lien for the improvement of real property.
Owner liability is proportionate and money-based. Under § 44-3-86(b)(4), absent contrary instruments, a unit owner owes no more than its proportionate share of the lease rent, and under § 44-3-86(b)(5) the lessor generally cannot require performance of a lease covenant other than by the payment of money, though it may perform a non-money default and charge the cost as rent.
Key requirements
No termination of the leasehold
O.C.G.A. § 44-3-86(b)(1), (2)- Lessor cannot terminate a unit owner's leasehold while the condominium exists
- Applies to the lessor who executed the declaration and successors
- A later-acquired interest does not merge with the underlying estate
The lessor's lien
O.C.G.A. § 44-3-86(b)(3)- Secures the owner's rent and other lease amounts if instruments provide
- Prior to all liens except ad valorem taxes and instrument-superior liens
- Secures collection costs and reasonable attorney's fees
- Foreclosed by action, judgment, and foreclosure
Owner rent liability
O.C.G.A. § 44-3-86(b)(4), (5)- Capped at the owner's proportionate share of lease rent
- Unless the condominium instruments provide otherwise
- Lessor generally cannot require performance other than by paying money
- Lessor may cure a non-money default and charge the cost as rent
Key statutory text
The lessor's-lien provision, reproduced verbatim from the Official Code of Georgia Annotated. Full text at legis.ga.gov.
§ 44-3-86(b)(3) - the lessor's lien
If provided for in the condominium instruments, the obligation of each unit owner to pay rents and any other amounts under any lease from any lessor shall be secured by a lien upon the condominium unit of the unit owner. The lien shall be prior to all other liens and encumbrances on that condominium unit except liens for ad valorem taxes; and any other lien or encumbrance which the condominium instruments provide shall be superior thereto. The lien shall secure all costs incurred, including, without limitation, reasonable attorney's fees, in connection with the foreclosure thereof and may be foreclosed by action, judgment, and foreclosure in the same manner as is provided for any other lien for the improvement of real property;
Common questions about § 44-3-86
- Can a lessor terminate a unit owner's leasehold in a Georgia leasehold condominium?
- No, while the condominium exists. O.C.G.A. § 44-3-86(b)(1) provides that, after the declaration is recorded, no lessor who executed the declaration and no successor-in-interest has any right or power to terminate all or any part of the leasehold interest of any unit owner so long as the condominium exists.
- What is the lessor's lien under § 44-3-86?
- If the condominium instruments provide for it, O.C.G.A. § 44-3-86(b)(3) secures each unit owner's obligation to pay rent and other amounts under a lease by a lien on the unit. That lien is prior to all other liens and encumbrances except liens for ad valorem taxes and any lien the condominium instruments make superior. The lien may be foreclosed by action, judgment, and foreclosure in the same manner as any other lien for the improvement of real property.
- Is the lessor's lien foreclosed judicially?
- Yes. O.C.G.A. § 44-3-86(b)(3) states the lien may be foreclosed by action, judgment, and foreclosure in the same manner as is provided for any other lien for the improvement of real property. That is judicial foreclosure, the same enforcement route the assessment lien uses under O.C.G.A. § 44-3-109(c).
- How much rent can a unit owner be charged in a leasehold condominium?
- O.C.G.A. § 44-3-86(b)(4) provides that, unless the condominium instruments say otherwise and except as provided for non-money defaults, no unit owner is obligated to pay more than the rents due under the lease multiplied by that owner's proportionate share of rent liability as set in the declaration. Under § 44-3-86(b)(5), a lessor generally cannot require a unit owner to perform a lease covenant other than by paying money.
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This is not legal advice. Consult Georgia community-association counsel for your specific situation.