Florida Senate - 2014                             CS for SB 1462
       
       
        
       By the Committee on Regulated Industries; and Senator Stargel
       
       
       
       
       
       580-02898-14                                          20141462c1
    1                        A bill to be entitled                      
    2         An act relating to residential properties; amending s.
    3         718.116, F.S.; defining the term “previous owner”;
    4         revising and providing liability of certain
    5         condominium owners acquiring title; amending s.
    6         720.3085, F.S.; revising and providing liability of
    7         certain homeowners’ association parcel owners
    8         acquiring title; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Paragraphs (a), (b), and (c) of subsection (1)
   13  of section 718.116, Florida Statutes, are amended to read:
   14         718.116 Assessments; liability; lien and priority;
   15  interest; collection.—
   16         (1)(a) A unit owner, regardless of how his or her title has
   17  been acquired, including by purchase at a foreclosure sale or by
   18  deed in lieu of foreclosure, is liable for all assessments which
   19  come due while he or she is the unit owner. Additionally, a unit
   20  owner is jointly and severally liable with the previous owner
   21  for all unpaid assessments that came due up to the time of
   22  transfer of title. For purposes of this paragraph, the term
   23  “previous owner” does not include an association that acquires
   24  title to a delinquent property through foreclosure or by deed in
   25  lieu of foreclosure. The present unit owner’s liability for
   26  unpaid assessments is limited to any unpaid assessments that
   27  accrued before the association acquired title to the delinquent
   28  property through foreclosure or by deed in lieu of foreclosure.
   29  The present unit owner’s payments shall be applied consistent
   30  with subsection (3). This liability is without prejudice to any
   31  right the owner may have to recover from the previous owner the
   32  amounts paid by the owner.
   33         (b)1. The liability of a first mortgagee or its successor
   34  or assignees who acquire title to a unit by foreclosure or by
   35  deed in lieu of foreclosure for the unpaid assessments that
   36  became due before the mortgagee’s acquisition of title is
   37  limited to the lesser of:
   38         a. The unit’s unpaid common expenses and regular periodic
   39  assessments and other costs that which accrued or came due
   40  pursuant to the association’s governing documents during the 24
   41  12 months immediately preceding the acquisition of title by the
   42  first mortgagee or the acquisition of title by the association,
   43  whichever occurs first, and for which payment in full has not
   44  been received by the association; or
   45         b. Two One percent of the original mortgage debt if the
   46  titleholder was the first mortgagee who acquired title by
   47  foreclosure.
   48         2.The provisions of This subsection applies paragraph
   49  apply only if the first mortgagee initially joined the
   50  association as a defendant in the foreclosure action. Joinder of
   51  the association is not required if, on the date the complaint is
   52  filed, the association was dissolved or did not maintain an
   53  office or agent for service of process at a location which was
   54  known to or reasonably discoverable by the mortgagee.
   55         3.2. An association, or its successor or assignee, that
   56  acquires title to a unit through the foreclosure of its lien for
   57  assessments is not liable for any unpaid assessments, late fees,
   58  interest, or reasonable attorney attorney’s fees and costs that
   59  came due before the association’s acquisition of title in favor
   60  of any other association, as defined in s. 718.103(2) or s.
   61  720.301(9), which holds a superior lien interest on the unit.
   62  This subparagraph is intended to clarify existing law.
   63         4. The liability of a first mortgagee or his or her
   64  successor or assignee who acquires title to a unit by
   65  foreclosure or by deed in lieu of foreclosure for attorney fees
   66  under this subsection is limited to $4,000, unless a court of
   67  competent jurisdiction finds exceptional circumstances that
   68  justify a greater award.
   69         (c) The person acquiring title shall pay the amount owed to
   70  the association within 30 days after transfer of title. Failure
   71  to pay the full amount when due shall entitle the association to
   72  record a claim of lien against the parcel and proceed in the
   73  same manner as provided in this section for the collection of
   74  the amount owed, any unpaid assessments, and other charges
   75  authorized by subsection (3) coming due after the acquisition of
   76  title.
   77         Section 2. Paragraphs (a), (b), and (c) of subsection (2)
   78  of section 720.3085, Florida Statutes, are amended to read:
   79         720.3085 Payment for assessments; lien claims.—
   80         (2)(a) A parcel owner, regardless of how his or her title
   81  to property has been acquired, including by purchase at a
   82  foreclosure sale or by deed in lieu of foreclosure, is liable
   83  for all assessments that come due while he or she is the parcel
   84  owner. The parcel owner’s liability for assessments may not be
   85  avoided by waiver or suspension of the use or enjoyment of any
   86  common area or by abandonment of the parcel upon which the
   87  assessments are made. A parcel owner’s payments shall be applied
   88  pursuant to paragraph (3)(b).
   89         (b) A parcel owner is jointly and severally liable with the
   90  previous parcel owner for all unpaid assessments that came due
   91  up to the time of transfer of title. This liability is without
   92  prejudice to any right the present parcel owner may have to
   93  recover any amounts paid by the present owner from the previous
   94  owner. For the purposes of this paragraph, the term “previous
   95  owner” does shall not include an association that acquires title
   96  to a delinquent property through foreclosure or by deed in lieu
   97  of foreclosure. The present parcel owner’s liability for unpaid
   98  assessments is limited to any unpaid assessments that accrued
   99  before the association acquired title to the delinquent property
  100  through foreclosure or by deed in lieu of foreclosure. The
  101  present parcel owner’s payments shall be applied pursuant to
  102  paragraph (3)(b).
  103         (c)1. Notwithstanding anything to the contrary contained in
  104  this section, the liability of a first mortgagee, or his or her
  105  its successor or assignee as a subsequent holder of the first
  106  mortgage who acquires title to a parcel by foreclosure or by
  107  deed in lieu of foreclosure for the unpaid assessments that
  108  became due before the mortgagee’s acquisition of title, shall be
  109  the lesser of:
  110         a.1. The parcel’s unpaid common expenses and regular
  111  periodic or special assessments and other costs that accrued or
  112  came due pursuant to the association’s governing documents
  113  during the 24 12 months immediately preceding the acquisition of
  114  title by a purchaser at a mortgage foreclosure sale or the
  115  acquisition of title by the association, whichever occurs first,
  116  and for which payment in full has not been received by the
  117  association; or
  118         b.2.Two One percent of the original mortgage debt if the
  119  titleholder was the first mortgagee who acquired title by
  120  foreclosure.
  121         2. The liability of a first mortgagee or his or her
  122  successor or assignee who acquires title to a parcel by
  123  foreclosure or by deed in lieu of foreclosure for attorney fees
  124  under this subsection is limited to $4,000, unless a court of
  125  competent jurisdiction finds exceptional circumstances that
  126  justify a greater award.
  127  
  128  The limitations on first mortgagee liability provided by this
  129  paragraph apply only if the first mortgagee filed suit against
  130  the parcel owner and initially joined the association as a
  131  defendant in the mortgagee foreclosure action. Joinder of the
  132  association is not required if, on the date the complaint is
  133  filed, the association was dissolved or did not maintain an
  134  office or agent for service of process at a location that was
  135  known to or reasonably discoverable by the mortgagee.
  136         Section 3. This act shall take effect July 1, 2014.