Senate Bill 2458

    Florida Senate - 2000                                  SB 2458

    By Senator Geller





    29-1219-00                                              See HB

  1                      A bill to be entitled

  2         An act relating to condominiums; amending s.

  3         718.116, F.S.; increasing the time period

  4         during which certain mortgagees who acquire

  5         title to a unit by foreclosure or by deed in

  6         lieu of foreclosure may be liable for certain

  7         unpaid assessments; increasing the maximum

  8         limit on the responsibility for the payment of

  9         certain unpaid assessments by such mortgagees;

10         providing for application; providing an

11         effective date.

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13  Be It Enacted by the Legislature of the State of Florida:

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15         Section 1.  Paragraph (b) of subsection (1) of section

16  718.116, Florida Statutes, is amended to read:

17         718.116  Assessments; liability; lien and priority;

18  interest; collection.--

19         (1)

20         (b)  With respect to mortgages recorded after April 1,

21  2001, the liability of a first mortgagee or its successor or

22  assignees who acquire title to a unit by foreclosure or by

23  deed in lieu of foreclosure for the unpaid assessments that

24  became due prior to the mortgagee's acquisition of title is

25  limited to the lesser of:

26         1.  The unit's unpaid common expenses and regular

27  periodic assessments which accrued or came due during the 9 6

28  months immediately preceding the acquisition of title and for

29  which payment in full has not been received by the

30  association; or

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






    Florida Senate - 2000                                  SB 2458
    29-1219-00                                              See HB




  1         2.  Two One percent of the original mortgage debt. The

  2  provisions of this paragraph shall not apply unless the first

  3  mortgagee joined the association as a defendant in the

  4  foreclosure action. Joinder of the association is not required

  5  if, on the date the complaint is filed, the association was

  6  dissolved or did not maintain an office or agent for service

  7  of process at a location which was known to or reasonably

  8  discoverable by the mortgagee.

  9         Section 2.  This act shall take effect upon becoming a

10  law.

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13                          HOUSE SUMMARY

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      Provides that with respect to mortgages recorded after
15    April 1, 2001, the liability of any mortgagee who
      acquires title to a condominium unit by foreclosure or
16    deed in lieu of foreclosure for the unpaid assessments
      that became due prior to such acquisition is limited to
17    the lesser of the unit's unpaid common expenses and
      regular periodic assessments which accrued or came due
18    during the 9 months immediately prior to the acquisition
      of title and for which payment in full has not been
19    received by the association, or 2 percent of the original
      mortgage debt.
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