House Bill 0251e1

                                        CS/HB 251, First Engrossed



  1                      A bill to be entitled

  2         An act relating to condominium unit unpaid

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

  4         limiting liability of certain mortgagees for

  5         certain unpaid assessments; providing a

  6         definition; providing an effective date.

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

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

11  718.116, Florida Statutes, is amended, and paragraph (g) is

12  added to said section, to read:

13         718.116  Assessments; liability; lien and priority;

14  interest; collection.--

15         (1)

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

17  successor or assignees who acquire title to a unit by

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

19  assessments that became due prior to the mortgagee's

20  acquisition of title is limited to the lesser of:

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

22  periodic assessments which accrued or came due during the 6

23  months immediately preceding the acquisition of title and for

24  which payment in full has not been received by the

25  association; or

26         2.  One percent of the original mortgage debt.

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28  The provisions of this paragraph shall not apply only if

29  unless the first mortgagee joined the association as a

30  defendant in the foreclosure action. Joinder of the

31  association is not required if, on the date the complaint is


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






                                        CS/HB 251, First Engrossed



  1  filed, the association was dissolved or did not maintain an

  2  office or agent for service of process at a location which was

  3  known to or reasonably discoverable by the mortgagee.

  4         (g)  For purposes of this subsection, the term

  5  "successor or assignee" of a first mortgagee includes only a

  6  subsequent holder of the first mortgage.

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

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