SB 586 Relating to Condo Associations/Unpaid Assessment |
S586 GENERAL BILL by Senator Siplin
19-212-06
1 A bill to be entitled 2 An act relating to condominium associations; 3 amending s. 718.116, F.S.; providing that a 4 lien foreclosure action or an action to recover 5 a money judgment brought as a result of unpaid 6 condominium association assessments may be 7 brought only in instances meeting a monetary 8 threshold; providing that an association is not 9 entitled to recover attorney's fees in 10 foreclosure actions or in actions to recover a 11 money judgment brought as a result of unpaid 12 association assessments; requiring an 13 association to provide 180 days' written notice 14 of its intention to foreclose its lien before 15 foreclosure judgment may be entered; providing 1 16 an effective date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Subsection (3), paragraph (b) of subsection 21 (5), and subsections (6) and (8) of section 718.116, Florida 22 Statutes, are amended to read: 23 718.116 Assessments; liability; lien and priority; 24 interest; collection.-- 25 (3) Assessments and installments on them which are not 26 paid when due bear interest at the rate provided in the 27 declaration, from the due date until paid. This rate may not 28 exceed the rate allowed by law, and, if no rate is provided in 29 the declaration, interest shall accrue at the rate of 18 30 percent per year. Also, if the declaration or bylaws so 31 provide, the association may charge an administrative late fee
1 CODING: Words Florida Senate - 2006 SB 586 19-212-06
1 in addition to such interest, in an amount not to exceed the 2 greater of $25 or 5 percent of each installment of the 3 assessment for each delinquent installment that the payment is 4 late. Any payment received by an association shall be applied 5 first to any interest accrued by the association, then to any
6 administrative late fee,
then to any costs
7 8 delinquent assessment. The foregoing shall be applicable 9 notwithstanding any restrictive endorsement, designation, or 10 instruction placed on or accompanying a payment. A late fee 11 shall not be subject to the provisions in chapter 687 or s. 12 718.303(3). 13 (5) 14 (b) To be valid, a claim of lien must state the 15 description of the condominium parcel, the name of the record 16 owner, the name and address of the association, the amount 17 due, and the due dates. It must be executed and acknowledged 18 by an officer or authorized agent of the association. No such 19 lien shall be effective longer than 1 year after the claim of 20 lien was recorded unless, within that time, an action to 21 enforce the lien is commenced. The 1-year period shall 22 automatically be extended for any length of time during which 23 the association is prevented from filing a foreclosure action 24 by an automatic stay resulting from a bankruptcy petition 25 filed by the parcel owner or any other person claiming an 26 interest in the parcel. The claim of lien shall secure all 27 unpaid assessments which are due and which may accrue 28 subsequent to the recording of the claim of lien and prior to 29 the entry of a certificate of title, as well as interest and
30 all reasonable costs 31 association incident to the collection process. Upon payment
2 CODING: Words Florida Senate - 2006 SB 586 19-212-06
1 in full, the person making the payment is entitled to a 2 satisfaction of the lien. 3 (6)(a) The association may bring an action in its name 4 to foreclose a lien for assessments in the manner a mortgage 5 of real property is foreclosed and may also bring an action to 6 recover a money judgment for the unpaid assessments without 7 waiving any claim of lien. A lien foreclosure action or an 8 action to recover a money judgment brought as a result of 9 unpaid condominium association assessments may be brought only 10 in those instances in which the amount in question equals or
11 exceeds $2,500.
The association is not entitled
to recover
12 13 foreclosure action or an action to recover a money judgment 14 for unpaid assessments. 15 (b) No foreclosure judgment may be entered until at
16 least 180
17 to the unit owner of its intention to foreclose its lien to
18 collect the unpaid assessments.
19
20
21
22
23 24 delivery of a copy of it to the unit owner or by certified or 25 registered mail, return receipt requested, addressed to the 26 unit owner at his or her last known address; and, upon such 27 mailing, the notice shall be deemed to have been given, and
28 the court shall proceed with the foreclosure action
29 30 notice requirements of this subsection are satisfied if the 31 unit owner records a notice of contest of lien as provided in
3 CODING: Words
1 subsection (5). The notice requirements of this subsection do 2 not apply if an action to foreclose a mortgage on the 3 condominium unit is pending before any court; if the rights of 4 the association would be affected by such foreclosure; and if 5 actual, constructive, or substitute service of process has 6 been made on the unit owner. 7 (c) If the unit owner remains in possession of the 8 unit after a foreclosure judgment has been entered, the court, 9 in its discretion, may require the unit owner to pay a 10 reasonable rental for the unit. If the unit is rented or 11 leased during the pendency of the foreclosure action, the 12 association is entitled to the appointment of a receiver to 13 collect the rent. The expenses of the receiver shall be paid 14 by the party which does not prevail in the foreclosure action. 15 (d) The association has the power to purchase the 16 condominium parcel at the foreclosure sale and to hold, lease, 17 mortgage, or convey it. 18 (8) Within 15 days after receiving a written request 19 therefor from a unit owner purchaser, or mortgagee, the 20 association shall provide a certificate signed by an officer 21 or agent of the association stating all assessments and other 22 moneys owed to the association by the unit owner with respect 23 to the condominium parcel. Any person other than the owner who 24 relies upon such certificate shall be protected thereby. A 25 summary proceeding pursuant to s. 51.011 may be brought to
26 compel compliance with this subsection
27
28 29 fees contained in s. 718.112(2)(i), the association or its 30 authorized agent may charge a reasonable fee for the 31 preparation of the certificate.
4 CODING: Words
Section 2. This act shall take effect July 1, 2006. 1 2 3 ***************************************** 4 SENATE SUMMARY 5 Limits a lien foreclosure or an action to recover a money judgment brought as a result of an unpaid assessment by a 6 condominium association to those instances in which the amount in question equals or exceeds $2,500. Requires a 7 written notice of 180 days rather than 30 days before entry of a foreclosure judgment. Removes authorization 8 for the association to recover attorney's fees and costs. |
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