Watch out! Is your Florida condominium association coming after your property?

Florida – July 28, 2022

Despite the State of Florida Homestead Protections to property owners from debtors, condominium owners should be concerned because Florida law gives condominium associations the legal right to sue for foreclosure on a property when an owner falls behind on their monthly dues, fees, and special assessments. Condominium associations can legally attempt to recoup revenues lost by owners who have fallen behind on paying their association fees by pushing a foreclosure action. It is important to understand condominium rules included in the declaration, articles of incorporation, and bylaws of the association because action to defend will speak to those documents.  An Orlando attorney who understands both condominium association practices and foreclosure law may be needed to keep an owner in their Florida home.

Condominium dues and assessments.

Liens on a condominium owner’s property are usually explained in the declaration and bylaws regarding dues and special assessments that are not been paid in accordance with that document and subject to supporting law under Chapter 720 of the Florida Statutes.  However, some condominium associations attempt to put attorneys’ fees in that category which may be up for dispute by an owner because those fees are not technically a special assessment or a condominium fee payment.  A Florida foreclosure lawyer may be helpful in negotiating these fees on an owner’s behalf when they are able to pull together arrearage amounts for condominium fees, and special assessments to catch up their delinquency, but do not think they are responsible for legal fees, at least as pertains to forcing a foreclosure.

Reverse foreclosure.

Some of this aggressive lien to foreclosure action may stem from the 2010 ruling in Miami Dade Circuit Court allowing an association to take legal action against a condominium owner’s lender to pay past-due condominium fees because they would be unable to sell the property with a bank lien on it, even though arrears recovery is limited.  A foreclosure attorney can review individual cases and work out next steps to cure the debt with the condominium association if it means the owner can stay in the home until the bank foreclosure process has played out.

Seek legal counsel.

Experienced Florida real estate attorneys can review the first notice, the purchase agreement and note pertaining to a property, the association declaration, articles of incorporation and bylaws to determine an avenue for an owner wishing to correct the delinquency.

Legal Counsel, P.A.

189 S. Orange Ave., Ste. 1800
Orlando, Florida  32801

Phone: 407-982-4321

Sources.

1. Chapter 196 Section 031 – 2020 Florida Statutes – The Florida Senate (flsenate.gov)
2. Statutes & Constitution :View Statutes : Online Sunshine (state.fl.us)
3. Chapter 720 – 2021 Florida Statutes – The Florida Senate (flsenate.gov)
4. HSBC Bank USA v. Keys Gate Community Association, Inc., Case No. 2007-18411 CA 09 (Miami-Dade Circuit Court)