CODING: Words stricken are deletions; words underlined are additions.

House Bill 0177

Florida House of Representatives - 1997 HB 177 By Representative Tobin 1 A bill to be entitled 2 An act relating to condominiums; amending s. 3 718.116, F.S.; providing that a certain amount 4 of condominium association liens shall have 5 limited priority over other mortgages; 6 providing an effective date. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 10 Section 1. Paragraph (d) is added to subsection (5) of 11 section 718.116, Florida Statutes, to read: 12 718.116 Assessments; liability; lien and priority; 13 interest; collection.-- 14 (5) 15 (d)1. The association shall have a lien on each unit 16 for any unpaid assessment duly made by the association for a 17 share of common expenses or otherwise, together with interest 18 thereon and, if authorized by the declaration or bylaws, 19 reasonable attorney's fees. Such lien shall be effective from 20 and after the time of recording, in the public records of the 21 county in which the unit is located, of a claim of lien 22 stating the description of the unit, the name of the record 23 owner, the amount due, and the date when due. Such claim of 24 lien shall include only sums which are due and payable when 25 the claim of lien is recorded and shall be signed and verified 26 by an officer or agent of the association. Upon full payment 27 of all sums secured by the lien, the party making payment 28 shall be entitled to a recordable satisfaction of lien. 29 Except as set forth in subparagraph 2., all such liens shall 30 be subordinate to any lien for past due and unpaid property 31 taxes, to the lien of any mortgage to which the unit is 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 177 216-186-97 1 subject, and to any other lien recorded prior to the time of 2 recording of the claim of lien. 3 2. A lien recorded pursuant to subparagraph 1. shall 4 have a limited priority over prior recorded mortgages and 5 other liens, other than liens for unpaid property taxes or 6 federal taxes, to the extent provided in this paragraph. This 7 priority shall be limited as follows: 8 a. To a lien which is the result of customary 9 condominium assessments as defined herein, the amount of which 10 shall not exceed the aggregate customary condominium 11 assessment against the unit owner for the 6-month period prior 12 to the recording of the lien; or 13 b. With respect to a particular mortgage, to a lien 14 recorded prior to: 15 (I) The receipt by the association of a summons and 16 complaint in an action to foreclose a mortgage on that unit; 17 or 18 (II) The filing with the proper county recording 19 office of a lis pendens giving notice of an action to 20 foreclose a mortgage on the unit. 21 c. In the case of more than one association lien being 22 filed, either because an association files more than one lien 23 or multiple associations have filed liens, the total amount of 24 the liens granted priority shall not be greater than the 25 assessment for the 6-month period specified in 26 sub-subparagraph a. Priority among multiple filings shall be 27 determined by their date of recording, with the earlier 28 recorded liens having first use of the priority given herein. 29 d. The priority granted to a lien pursuant to this 30 paragraph shall expire on the first day of the 60th month 31 following the date of recording of an association lien. 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 177 216-186-97 1 e. A lien of an association shall not be granted 2 priority over a prior recorded mortgage or mortgages under 3 this paragraph if a prior recorded lien of the association for 4 unpaid assessments has obtained priority over the same 5 recorded mortgage or mortgages as provided in this paragraph 6 for a period of 60 months from the date of recording of the 7 lien granted priority. 8 f. When recording a lien which may be granted priority 9 pursuant to this paragraph, an association shall notify, in 10 writing, any holder of a first mortgage lien on the property 11 of the filing of the association lien. An association which 12 exercises a good faith effort but is unable to ascertain the 13 identity of a holder of a prior recorded mortgage on the 14 property shall be deemed to be in substantial compliance with 15 this paragraph. 16 17 For the purpose of this paragraph, a "customary condominium 18 assessment" shall mean an assessment for periodic payments due 19 the association for regular and usual operating and common 20 area expenses pursuant to the association's annual budget and 21 shall not include amounts for reserves for contingencies, nor 22 shall it include any late charges, penalties, or interest, or 23 any fees or costs for the collection or enforcement of the 24 assessment, or for any lien arising from the assessment. The 25 periodic payments due must be due monthly, or no less 26 frequently than quarter-yearly, as may be acceptable to the 27 Federal National Mortgage Association, so as not to disqualify 28 an otherwise superior mortgage on the condominium from 29 purchase by the Federal National Mortgage Association as a 30 first mortgage. 31 Section 2. This act shall take effect October 1, 1997. 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 177 216-186-97 1 ***************************************** 2 HOUSE SUMMARY 3 Provides that a described portion of condominium 4 association liens shall have limited priority over other mortgages. See bill for details. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4