Coruscation

In the downturn, many owners stopped paying common charges, and condominiums had little recourse to recoup their money. In case of a default, the city is first in line to recover outstanding real estate taxes or other charges, followed by the mortgage lender. The condominium is third in line, and usually all it can do is file a lien against the property and hope that it will be repaid when the apartment is sold.

Because the condominium's power is limited, it is a matter of fiduciary duty to find strong buyers, said Carl Seligson, the board president of Carnegie Hill Tower, at 40 East 94th Street. In any given month, about three apartments in the 180-unit building have not paid their monthly charges on time; none have defaulted, he said.