Senate Bill sb0586
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 586
By Senator Siplin
19-212-06
1 A bill to be entitled
2 An act relating to condominium associations;
3 amending s. 718.116, F.S.; providing that a
4 lien foreclosure action or an action to recover
5 a money judgment brought as a result of unpaid
6 condominium association assessments may be
7 brought only in instances meeting a monetary
8 threshold; providing that an association is not
9 entitled to recover attorney's fees in
10 foreclosure actions or in actions to recover a
11 money judgment brought as a result of unpaid
12 association assessments; requiring an
13 association to provide 180 days' written notice
14 of its intention to foreclose its lien before
15 foreclosure judgment may be entered; providing
16 an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Subsection (3), paragraph (b) of subsection
21 (5), and subsections (6) and (8) of section 718.116, Florida
22 Statutes, are amended to read:
23 718.116 Assessments; liability; lien and priority;
24 interest; collection.--
25 (3) Assessments and installments on them which are not
26 paid when due bear interest at the rate provided in the
27 declaration, from the due date until paid. This rate may not
28 exceed the rate allowed by law, and, if no rate is provided in
29 the declaration, interest shall accrue at the rate of 18
30 percent per year. Also, if the declaration or bylaws so
31 provide, the association may charge an administrative late fee
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 586
19-212-06
1 in addition to such interest, in an amount not to exceed the
2 greater of $25 or 5 percent of each installment of the
3 assessment for each delinquent installment that the payment is
4 late. Any payment received by an association shall be applied
5 first to any interest accrued by the association, then to any
6 administrative late fee, then to any costs and reasonable
7 attorney's fees incurred in collection, and then to the
8 delinquent assessment. The foregoing shall be applicable
9 notwithstanding any restrictive endorsement, designation, or
10 instruction placed on or accompanying a payment. A late fee
11 shall not be subject to the provisions in chapter 687 or s.
12 718.303(3).
13 (5)
14 (b) To be valid, a claim of lien must state the
15 description of the condominium parcel, the name of the record
16 owner, the name and address of the association, the amount
17 due, and the due dates. It must be executed and acknowledged
18 by an officer or authorized agent of the association. No such
19 lien shall be effective longer than 1 year after the claim of
20 lien was recorded unless, within that time, an action to
21 enforce the lien is commenced. The 1-year period shall
22 automatically be extended for any length of time during which
23 the association is prevented from filing a foreclosure action
24 by an automatic stay resulting from a bankruptcy petition
25 filed by the parcel owner or any other person claiming an
26 interest in the parcel. The claim of lien shall secure all
27 unpaid assessments which are due and which may accrue
28 subsequent to the recording of the claim of lien and prior to
29 the entry of a certificate of title, as well as interest and
30 all reasonable costs and attorney's fees incurred by the
31 association incident to the collection process. Upon payment
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 586
19-212-06
1 in full, the person making the payment is entitled to a
2 satisfaction of the lien.
3 (6)(a) The association may bring an action in its name
4 to foreclose a lien for assessments in the manner a mortgage
5 of real property is foreclosed and may also bring an action to
6 recover a money judgment for the unpaid assessments without
7 waiving any claim of lien. A lien foreclosure action or an
8 action to recover a money judgment brought as a result of
9 unpaid condominium association assessments may be brought only
10 in those instances in which the amount in question equals or
11 exceeds $2,500. The association is not entitled to recover its
12 reasonable attorney's fees incurred in either a lien
13 foreclosure action or an action to recover a money judgment
14 for unpaid assessments.
15 (b) No foreclosure judgment may be entered until at
16 least 180 30 days after the association gives written notice
17 to the unit owner of its intention to foreclose its lien to
18 collect the unpaid assessments. If this notice is not given at
19 least 30 days before the foreclosure action is filed, and if
20 the unpaid assessments, including those coming due after the
21 claim of lien is recorded, are paid before the entry of a
22 final judgment of foreclosure, the association shall not
23 recover attorney's fees or costs. The notice must be given by
24 delivery of a copy of it to the unit owner or by certified or
25 registered mail, return receipt requested, addressed to the
26 unit owner at his or her last known address; and, upon such
27 mailing, the notice shall be deemed to have been given, and
28 the court shall proceed with the foreclosure action and may
29 award attorney's fees and costs as permitted by law. The
30 notice requirements of this subsection are satisfied if the
31 unit owner records a notice of contest of lien as provided in
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 586
19-212-06
1 subsection (5). The notice requirements of this subsection do
2 not apply if an action to foreclose a mortgage on the
3 condominium unit is pending before any court; if the rights of
4 the association would be affected by such foreclosure; and if
5 actual, constructive, or substitute service of process has
6 been made on the unit owner.
7 (c) If the unit owner remains in possession of the
8 unit after a foreclosure judgment has been entered, the court,
9 in its discretion, may require the unit owner to pay a
10 reasonable rental for the unit. If the unit is rented or
11 leased during the pendency of the foreclosure action, the
12 association is entitled to the appointment of a receiver to
13 collect the rent. The expenses of the receiver shall be paid
14 by the party which does not prevail in the foreclosure action.
15 (d) The association has the power to purchase the
16 condominium parcel at the foreclosure sale and to hold, lease,
17 mortgage, or convey it.
18 (8) Within 15 days after receiving a written request
19 therefor from a unit owner purchaser, or mortgagee, the
20 association shall provide a certificate signed by an officer
21 or agent of the association stating all assessments and other
22 moneys owed to the association by the unit owner with respect
23 to the condominium parcel. Any person other than the owner who
24 relies upon such certificate shall be protected thereby. A
25 summary proceeding pursuant to s. 51.011 may be brought to
26 compel compliance with this subsection, and in any such action
27 the prevailing party is entitled to recover reasonable
28 attorney's fees. Notwithstanding any limitation on transfer
29 fees contained in s. 718.112(2)(i), the association or its
30 authorized agent may charge a reasonable fee for the
31 preparation of the certificate.
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 586
19-212-06
1 Section 2. This act shall take effect July 1, 2006.
2
3 *****************************************
4 SENATE SUMMARY
5 Limits a lien foreclosure or an action to recover a money
judgment brought as a result of an unpaid assessment by a
6 condominium association to those instances in which the
amount in question equals or exceeds $2,500. Requires a
7 written notice of 180 days rather than 30 days before
entry of a foreclosure judgment. Removes authorization
8 for the association to recover attorney's fees and costs.
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
5
CODING: Words stricken are deletions; words underlined are additions.