House Bill 0251c1

    Florida House of Representatives - 2000              CS/HB 251

        By the Committee on Real Property & Probate and
    Representatives Detert, Roberts and Brown





  1                      A bill to be entitled

  2         An act relating to condominium unit unpaid

  3         assessments; amending s. 718.116, F.S.;

  4         specifying nonapplication of certain assessment

  5         reduction or exemption provisions to a

  6         third-party purchaser at a foreclosure sale;

  7         providing a definition; providing an effective

  8         date.

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

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12         Section 1.  Paragraph (g) is added to subsection (1) of

13  section 718.116, Florida Statutes, to read:

14         718.116  Assessments; liability; lien and priority;

15  interest; collection.--

16         (1)

17         (b)  The liability of a first mortgagee or its

18  successor or assignees who acquire title to a unit by

19  foreclosure or by deed in lieu of foreclosure for the unpaid

20  assessments that became due prior to the mortgagee's

21  acquisition of title is limited to the lesser of:

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

23  periodic assessments which accrued or came due during the 6

24  months immediately preceding the acquisition of title and for

25  which payment in full has not been received by the

26  association; or

27         2.  One percent of the original mortgage debt. The

28  provisions of this paragraph shall not apply unless the first

29  mortgagee joined the association as a defendant in the

30  foreclosure action. Joinder of the association is not required

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

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






    Florida House of Representatives - 2000              CS/HB 251

    605-134-00






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

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

  3  discoverable by the mortgagee.

  4         (e)  Notwithstanding the provisions of paragraph (b), a

  5  first mortgagee or its successor or assignees who acquire

  6  title to a condominium unit as a result of the foreclosure of

  7  the mortgage or by deed in lieu of foreclosure of the mortgage

  8  shall be exempt from liability for all unpaid assessments

  9  attributable to the parcel or chargeable to the previous owner

10  which came due prior to acquisition of title if the first

11  mortgage was recorded prior to April 1, 1992. If, however, the

12  first mortgage was recorded on or after April 1, 1992, or on

13  the date the mortgage was recorded, the declaration included

14  language incorporating by reference future amendments to this

15  chapter, the provisions of paragraph (b) shall apply.

16         (g)  The provisions of paragraphs (b) and (e) do not

17  apply to a third-party purchaser at a foreclosure sale. For

18  purposes of this paragraph, "third-party purchaser" means

19  anyone other than a first mortgagee or a successor or assignee

20  of a first mortgagee.

21         Section 2.  This act shall take effect October 1, 2000.

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