Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. SB 1844
                        Barcode 033088
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: RCS             .                    
       04/09/2007 05:07 PM         .                    
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11  The Committee on Regulated Industries (Haridopolos)
12  recommended the following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Subsection (6) of section 718.116, Florida
19  Statutes, is amended to read:
20         718.116  Assessments; liability; lien and priority;
21  interest; collection.--
22         (6)(a)  The association may bring an action in its name
23  to foreclose a lien for assessments in the manner a mortgage
24  of real property is foreclosed and may also bring an action to
25  recover a money judgment for the unpaid assessments without
26  waiving any claim of lien.  The association is entitled to
27  recover its reasonable attorney's fees incurred in either a
28  lien foreclosure action or an action to recover a money
29  judgment for unpaid assessments.
30         (b)  A foreclosure action may not be initiated earlier
31  than 30 days after the association has given the unit owner
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Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 written notice of the association's intent to foreclose its 2 lien to collect the unpaid assessments secured by the lien. 3 The written notice is a condition precedent to the filing of 4 any foreclosure action. 5 1. The written notice may be given by hand delivery to 6 the unit owner or sent by electronic transmission if the unit 7 owner has agreed to receive association notice by an 8 electronic format. If hand delivery is not possible or the 9 owner has not consented to receive association notice by 10 electronic format, written notice must be sent by registered 11 or certified mail and regular mail to the unit owner at the 12 last address given to the association by the unit owner, if 13 the address is within the United States, and to the address of 14 the property that is subject to the lien. 15 2. If the unit owner has given the association an 16 alternate address outside the United States, the written 17 notice requirement is satisfied by sending a copy of the 18 written notice to the unit owner by regular mail at the 19 alternate address and by sending a copy to the property 20 address by registered or certified mail and regular mail. 21 3. If the mailing is completed in compliance with this 22 subsection, the written notice is deemed to have been given 23 and is deemed to have been received by the unit owner 5 days 24 after the date of mailing, hand delivery, or electronic 25 transmission. Notwithstanding this subsection, the notice 26 requirements are inapplicable if a unit owner records a notice 27 of contest of lien or if an action to foreclose a mortgage on 28 the property is pending before any court. No foreclosure 29 judgment may be entered until at least 30 days after the 30 association gives written notice to the unit owner of its 31 intention to foreclose its lien to collect the unpaid 2 8:13 AM 03/09/07 s1844d-ri26-ta1
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 assessments. If this notice is not given at least 30 days 2 before the foreclosure action is filed, and if the unpaid 3 assessments, including those coming due after the claim of 4 lien is recorded, are paid before the entry of a final 5 judgment of foreclosure, the association shall not recover 6 attorney's fees or costs. The notice must be given by 7 delivery of a copy of it to the unit owner or by certified or 8 registered mail, return receipt requested, addressed to the 9 unit owner at his or her last known address; and, upon such 10 mailing, the notice shall be deemed to have been given, and 11 the court shall proceed with the foreclosure action and may 12 award attorney's fees and costs as permitted by law. The 13 notice requirements of this subsection are satisfied if the 14 unit owner records a notice of contest of lien as provided in 15 subsection (5). The notice requirements of this subsection do 16 not apply if an action to foreclose a mortgage on the 17 condominium unit is pending before any court; if the rights of 18 the association would be affected by such foreclosure; and if 19 actual, constructive, or substitute service of process has 20 been made on the unit owner. 21 (c) If the unit owner remains in possession of the 22 unit after a foreclosure judgment has been entered, the court, 23 in its discretion, may require the unit owner to pay a 24 reasonable rental for the unit. If the unit is rented or 25 leased during the pendency of the foreclosure action, the 26 association is entitled to the appointment of a receiver to 27 collect the rent. The expenses of the receiver shall be paid 28 by the party that which does not prevail in the foreclosure 29 action. 30 (d) The association may has the power to purchase the 31 condominium parcel at the foreclosure sale and to hold, lease, 3 8:13 AM 03/09/07 s1844d-ri26-ta1
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 mortgage, or convey it. 2 (e)1. If the unit owner makes a qualifying offer at 3 any time before the entry of a foreclosure judgment, the 4 association shall suspend its foreclosure action or collection 5 efforts and agree to allow the unit owner to pay all amounts 6 due plus interest within 60 days after receipt of the 7 qualifying offer. 8 2. For purposes of this paragraph, the term "qualifying 9 offer" means a written offer to pay all amounts secured by the 10 lien of the association plus the rate of interest stated in 11 the governing documents for delinquent accounts or, if no such 12 rate is stated, 10 percent interest. 13 3. The unit owner's qualifying offer must be in 14 writing. The offer must be included in an agreement prepared 15 by the association's counsel which document must acknowledge 16 that the amounts contained therein are secured by the lien of 17 the association. If the unit owner makes a qualifying offer 18 under this paragraph, the association may not add additional 19 legal fees within the 60-day period other than a reasonable 20 amount to prepare the written agreement required by this 21 subsection. 22 4. The qualifying offer to the association must be 23 delivered to the attorney of the association by hand delivery 24 or certified or registered mail, and is not deemed received by 25 the association until the offer is actually received by the 26 attorney. Notwithstanding this subparagraph, an offer is not 27 considered a qualifying offer if a notice of contest of lien 28 is recorded or if the offer is made more than 8 months after 29 the lien is recorded by the association unless a foreclosure 30 action has already been filed. 31 Section 2. Subsection (5) of section 719.108, Florida 4 8:13 AM 03/09/07 s1844d-ri26-ta1
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 Statutes, is amended to read: 2 719.108 Rents and assessments; liability; lien and 3 priority; interest; collection; cooperative ownership.-- 4 (5)(a) Liens for rents and assessments may be 5 foreclosed by suit brought in the name of the association, in 6 like manner as a foreclosure of a mortgage on real property. 7 In any foreclosure, the unit owner shall pay a reasonable 8 rental for the cooperative parcel, if so provided in the 9 cooperative documents, and the plaintiff in the foreclosure is 10 entitled to the appointment of a receiver to collect the rent. 11 The association has the power, unless prohibited by the 12 cooperative documents, to bid on the cooperative parcel at the 13 foreclosure sale and to acquire and hold, lease, mortgage, or 14 convey it. Suit to recover a money judgment for unpaid rents 15 and assessments may be maintained without waiving the lien 16 securing them. 17 (b)1. If the unit owner makes a qualifying offer at 18 any time before the entry of a foreclosure judgment, the 19 association shall suspend its foreclosure action or collection 20 efforts and agree to allow the unit owner to pay all amounts 21 due plus interest within 60 days after receipt of the 22 qualifying offer. 23 2. For purposes of this paragraph, the term "qualifying 24 offer" means a written offer to pay all amounts secured by the 25 lien of the association, plus the rate of interest stated in 26 the governing documents for delinquent accounts or, if no such 27 rate is stated, 10 percent interest. 28 3. The unit owner's qualifying offer must be in 29 writing. The offer must be included in an agreement prepared 30 by the association's counsel which document must acknowledge 31 that the amounts contained therein are secured by the lien of 5 8:13 AM 03/09/07 s1844d-ri26-ta1
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 the association. If the unit owner makes a qualifying offer 2 under this paragraph, the association may not add additional 3 legal fees within the 60-day period other than a reasonable 4 amount to prepare the written agreement required by this 5 subsection. 6 4. The qualifying offer to the association must be 7 delivered to the attorney of the association by hand delivery 8 or certified or registered mail and is not deemed received by 9 the association until the offer is actually received by the 10 attorney. Notwithstanding this subparagraph, an offer is not 11 considered a qualifying offer if a notice of contest of lien 12 is recorded or if the offer is made more than 8 months after 13 the lien is recorded by the association unless a foreclosure 14 action has already been filed. 15 Section 3. This act shall take effect July 1, 2007. 16 17 18 ================ T I T L E A M E N D M E N T =============== 19 And the title is amended as follows: 20 Delete everything before the enacting clause 21 22 and insert: 23 A bill to be entitled 24 An act relating to condominiums and 25 cooperatives; amending s. 718.116, F.S.; 26 prohibiting a condominium association from 27 initiating a foreclosure action for assessments 28 owed earlier than 30 days after the condominium 29 association has given the unit owner written 30 notice of the condominium association's intent 31 to foreclose its lien to collect the unpaid 6 8:13 AM 03/09/07 s1844d-ri26-ta1
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1844 Barcode 033088 1 assessments secured by the lien; providing 2 procedures for delivery of the written notice 3 to the unit owner; providing an exception; 4 providing that if a unit owner makes a 5 qualifying offer, the condominium association 6 must suspend its foreclosure action or 7 collection efforts and agree to allow the unit 8 owner to pay all amounts due plus interest 9 within 60 days after receipt of the qualifying 10 offer; defining the term "qualifying offer"; 11 providing procedures for acceptance of the 12 qualifying offer; providing an exception; 13 amending s. 719.108, F.S.; providing that if a 14 unit owner makes a qualifying offer, the 15 cooperative association must suspend its 16 foreclosure action or collection efforts and 17 agree to allow the unit owner to pay all 18 amounts due plus interest within 60 days after 19 receipt of the qualifying offer; defining the 20 term "qualifying offer"; providing procedures 21 for acceptance of the qualifying offer; 22 providing an exception; providing an effective 23 date. 24 25 26 27 28 29 30 31 7 8:13 AM 03/09/07 s1844d-ri26-ta1