Senate Bill 0680

    Florida Senate - 2000                                   SB 680

    By Senator Carlton





    24-429-00                                               See HB

  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 third

  6         party purchaser at a foreclosure sale;

  7         providing an effective date.

  8

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

10

11         Section 1.  Paragraphs (b) and (e) of subsection (1) of

12  section 718.116, Florida Statutes, are amended 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.






    Florida Senate - 2000                                   SB 680
    24-429-00                                               See HB




  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. The

  4  provisions of this paragraph apply at a foreclosure sale only

  5  to a first mortgagee or its successor or assignee.

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

  7  first mortgagee or its successor or assignees who acquire

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

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

10  shall be exempt from liability for all unpaid assessments

11  attributable to the parcel or chargeable to the previous owner

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

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

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

15  the date the mortgage was recorded, the declaration included

16  language incorporating by reference future amendments to this

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

18  provisions of this paragraph apply at a foreclosure sale only

19  to a first mortgagee or its successor or assignee.

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

21

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23                          SENATE SUMMARY

24
      Specifies that a reduction in liability for unpaid
25    condominium unit assessments or an exemption from unpaid
      condominium unit assessments apply at a foreclosure sale
26    only to a first mortgagee or its successor or assignee.

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