Florida Senate - 2014 SENATOR AMENDMENT Bill No. CS for CS for SB 1466 Ì734006yÎ734006 LEGISLATIVE ACTION Senate . House . . . Floor: 1/AD/2R . 04/28/2014 04:09 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Lee moved the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 71 - 684 4 and insert: 5 468.4334 Professional practice standards; liability.— 6 (1) A community association manager and a community 7 association management firm are deemed to act as agent on behalf 8 of a community association as principal within the scope of 9 authority authorized by a written contract or under this 10 chapter. A community association manager and a community 11 association management firm shall discharge duties performed on 12 behalf of the association as authorized by this chapter loyally, 13 skillfully, and diligently; dealing honestly and fairly; in good 14 faith; with care and full disclosure to the community 15 association; accounting for all funds; and not charging 16 unreasonable or excessive fees. 17 (2)(a) A contract between a community association and a 18 community association manager or a contract between a community 19 association and a community association management firm may 20 provide that the community association indemnifies and holds 21 harmless the community association manager and the community 22 association management firm for ordinary negligence resulting 23 from the manager or management firm’s act or omission that is 24 the result of an instruction or direction of the community 25 association. This paragraph does not preclude any other 26 negotiated indemnity or hold-harmless provision. 27 (b) Indemnification under paragraph (a) may not cover any 28 act or omission that violates criminal law; derives an improper 29 personal benefit, either directly or indirectly; is grossly 30 negligent; or is reckless, is in bad faith, is with malicious 31 purpose, or is in a manner exhibiting wanton and willful 32 disregard of human rights, safety, or property. 33 Section 3. Paragraph (d) is added to subsection (5) of 34 section 718.116, Florida Statutes, and paragraphs (a) and (b) of 35 subsection (6) of that section are amended, to read: 36 718.116 Assessments; liability; lien and priority; 37 interest; collection.— 38 (5) 39 (d) A release of lien must be in substantially the 40 following form: 41 42 RELEASE OF LIEN 43 The undersigned lienor, in consideration of the final payment in 44 the amount of $...., hereby waives and releases its lien and 45 right to claim a lien for unpaid assessments through ...., 46 ...(year)..., recorded in Official Records Book .... at Page 47 ...., of the public records of .... County, Florida, for the 48 following described real property: 49 50 UNIT NO. .... OF ...(NAME OF CONDOMINIUM)..., A 51 CONDOMINIUM AS SET FORTH IN THE DECLARATION OF 52 CONDOMINIUM AND THE EXHIBITS ANNEXED THERETO AND 53 FORMING A PART THEREOF, RECORDED IN OFFICIAL RECORDS 54 BOOK ...., PAGE ...., OF THE PUBLIC RECORDS OF .... 55 COUNTY, FLORIDA. THE ABOVE DESCRIPTION INCLUDES, BUT 56 IS NOT LIMITED TO, ALL APPURTENANCES TO THE 57 CONDOMINIUM UNIT ABOVE DESCRIBED, INCLUDING THE 58 UNDIVIDED INTEREST IN THE COMMON ELEMENTS OF SAID 59 CONDOMINIUM. 60 61 ...(Signature of Authorized Agent)... ...(Signature of 62 Witness)... 63 ...(Print Name)... ...(Print Name)... 64 65 ...(Signature of Witness)... 66 ...(Print Name)... 67 68 Sworn to (or affirmed) and subscribed before me this .... day of 69 ...., ...(year)..., by ...(name of person making statement).... 70 ...(Signature of Notary Public)... 71 ...(Print, type, or stamp commissioned name of Notary Public)... 72 Personally Known.... OR Produced.... as identification. 73 74 After notice of contest of lien has been recorded, the clerk of 75 the circuit court shall mail a copy of the recorded notice to 76 the association by certified mail, return receipt requested, at 77 the address shown in the claim of lien or most recent amendment 78 to it and shall certify to the service on the face of the 79 notice. Service is complete upon mailing. After service, the 80 association has 90 days in which to file an action to enforce 81 the lien; and, if the action is not filed within the 90-day 82 period, the lien is void. However, the 90-day period shall be 83 extended for any length of time during which the association is 84 prevented from filing its action because of an automatic stay 85 resulting from the filing of a bankruptcy petition by the unit 86 owner or by any other person claiming an interest in the parcel. 87 (6)(a) The association may bring an action in its name to 88 foreclose a lien for assessments in the manner a mortgage of 89 real property is foreclosed and may also bring an action to 90 recover a money judgment for the unpaid assessments without 91 waiving any claim of lien. The association is entitled to 92 recover its reasonable attorneyattorney’sfees incurred in 93 either a lien foreclosure action or an action to recover a money 94 judgment for unpaid assessments. 95 (b) No foreclosure judgment may be entered until at least 96 30 days after the association gives written notice to the unit 97 owner of its intention to foreclose its lien to collect the 98 unpaid assessments. The notice must be in substantially the 99 following form: 100 101 DELINQUENT ASSESSMENT 102 This letter is to inform you a Claim of Lien has been 103 filed against your property because you have not paid 104 the ...(type of assessment)... assessment to ...(name 105 of association).... The association intends to 106 foreclose the lien and collect the unpaid amount 107 within 30 days of this letter being provided to you. 108 109 You owe the interest accruing from ...(month/year)... 110 to the present. As of the date of this letter, the 111 total amount due with interest is $..... All costs of 112 any action and interest from this day forward will 113 also be charged to your account. 114 115 Any questions concerning this matter should be 116 directed to ...(insert name, addresses, and telephone 117 numbers of association representative).... 118 119 If this notice is not given at least 30 days before the 120 foreclosure action is filed, and if the unpaid assessments, 121 including those coming due after the claim of lien is recorded, 122 are paid before the entry of a final judgment of foreclosure, 123 the association shall not recover attorneyattorney’sfees or 124 costs. The notice must be given by delivery of a copy of it to 125 the unit owner or by certified or registered mail, return 126 receipt requested, addressed to the unit owner at his or her 127 last known address; and, upon such mailing, the notice shall be 128 deemed to have been given, and the court shall proceed with the 129 foreclosure action and may award attorneyattorney’sfees and 130 costs as permitted by law. The notice requirements of this 131 subsection are satisfied if the unit owner records a notice of 132 contest of lien as provided in subsection (5). The notice 133 requirements of this subsection do not apply if an action to 134 foreclose a mortgage on the condominium unit is pending before 135 any court; if the rights of the association would be affected by 136 such foreclosure; and if actual, constructive, or substitute 137 service of process has been made on the unit owner. 138 Section 4. Subsection (4) of section 718.121, Florida 139 Statutes, is amended to read: 140 718.121 Liens.— 141 (4) Except as otherwise provided in this chapter, no lien 142 may be filed by the association against a condominium unit until 143 30 days after the date on which a notice of intent to file a 144 lien has been delivered to the owner by registered or certified 145 mail, return receipt requested, and by first-class United States 146 mail to the owner at his or her last address as reflected in the 147 records of the association, if the address is within the United 148 States, and delivered to the owner at the address of the unit if 149 the owner’s address as reflected in the records of the 150 association is not the unit address. If the address reflected in 151 the records is outside the United States, sending the notice to 152 that address and to the unit address by first-class United 153 States mail is sufficient. Delivery of the notice shall be 154 deemed given upon mailing as required by this subsection. The 155 notice must be in substantially the following form: 156 157 NOTICE OF INTENT TO RECORD A CLAIM OF LIEN 158 159 RE: Unit .... of ...(name of association)... 160 161 The following amounts are currently due on your 162 account to ...(name of association)... and must be 163 paid within 30 days after your receipt of this letter. 164 This letter shall serve as the association’s notice of 165 intent to record a Claim of Lien against your property 166 no sooner than 30 days after your receipt of this 167 letter, unless you pay in full the amounts set forth 168 below: 169 170 Maintenance due ...(dates)... $.... 171 Late fee, if applicable $.... 172 Interest through ...(dates)...* $.... 173 Certified mail charges $.... 174 Other costs $.... 175 TOTAL OUTSTANDING $.... 176 177 *Interest accrues at the rate of .... percent per 178 annum. 179 Section 5. Subsections (3) and (4) of section 719.108, 180 Florida Statutes, are amended to read: 181 719.108 Rents and assessments; liability; lien and 182 priority; interest; collection; cooperative ownership.— 183 (3) Rents and assessments, and installments on them, not 184 paid when due bear interest at the rate provided in the 185 cooperative documents from the date due until paid. This rate 186 may not exceed the rate allowed by law and, if a rate is not 187 provided in the cooperative documents, accrues at 18 percent per 188 annum. If the cooperative documents or bylaws so provide, the 189 association may charge an administrative late fee in addition to 190 such interest, not to exceed the greater of $25 or 5 percent of 191 each installment of the assessment for each delinquent 192 installment that the payment is late. Any payment received by an 193 association must be applied first to any interest accrued by the 194 association, then to any administrative late fee, then to any 195 costs and reasonable attorneyattorney’sfees incurred in 196 collection, and then to the delinquent assessment. The foregoing 197 applies notwithstanding any restrictive endorsement, 198 designation, or instruction placed on or accompanying a payment. 199 A late fee is not subject to chapter 687 or s. 719.303(4). 200 (4) The association has a lien on each cooperative parcel 201 for any unpaid rents and assessments, plus interest, and any 202 authorized administrative late fees. If authorized by the 203 cooperative documents, the lien also secures reasonable attorney 204attorney’sfees incurred by the association incident to the 205 collection of the rents and assessments or enforcement of such 206 lien. The lien is effective from and after recording a claim of 207 lien in the public records in the county in which the 208 cooperative parcel is located which states the description of 209 the cooperative parcel, the name of the unit owner, the amount 210 due, and the due dates.The lien expires if a claim of lien is211not filed within 1 year after the date the assessment was due,212and the lien does not continue for longer than 1 year after the213claim of lien has been recorded unless, within that time, an214action to enforce the lien is commenced.Except as otherwise 215 provided in this chapter, a lien may not be filed by the 216 association against a cooperative parcel until 30 days after the 217 date on which a notice of intent to file a lien has been 218 delivered to the owner. 219 (a) The notice must be sent to the unit owner at the 220 address of the unit by first-class United States mail and, the 221 notice must be in substantially the following form: 222 223 NOTICE OF INTENT TO RECORD A CLAIM OF LIEN 224 225 RE: Unit ...(unit number)... of ...(name of 226 cooperative)... 227 228 The following amounts are currently due on your 229 account to ...(name of association)... and must be 230 paid within 30 days after your receipt of this letter. 231 This letter shall serve as the association’s notice of 232 intent to record a Claim of Lien against your property 233 no sooner than 30 days after your receipt of this 234 letter, unless you pay in full the amounts set forth 235 below: 236 237 Maintenance due ...(dates)... $.... 238 Late fee, if applicable $.... 239 Interest through ...(dates)...* $.... 240 Certified mail charges $.... 241 Other costs $.... 242 TOTAL OUTSTANDING $.... 243 244 *Interest accrues at the rate of .... percent per 245 annum. 246 1. If the most recent address of the unit owner on the 247 records of the association is the address of the unit, the 248 notice must be sent byregistered orcertified mail, return 249 receipt requested, to the unit owner at the address of the unit. 250 2. If the most recent address of the unit owner on the 251 records of the association is in the United States, but is not 252 the address of the unit, the notice must be sent byregistered253orcertified mail, return receipt requested, to the unit owner 254 at his or her most recent address. 255 3. If the most recent address of the unit owner on the 256 records of the association is not in the United States, the 257 notice must be sent by first-class United States mail to the 258 unit owner at his or her most recent address. 259 (b) A notice that is sent pursuant to this subsection is 260 deemed delivered upon mailing. A claim of lien must be executed 261 and acknowledged by an officer or authorized agent of the 262 association. The lien is not effective 1 year after the claim of 263 lien was recorded unless, within that time, an action to enforce 264 the lien is commenced. The 1-year period is automatically 265 extended for any length of time during which the association is 266 prevented from filing a foreclosure action by an automatic stay 267 resulting from a bankruptcy petition filed by the parcel owner 268 or any other person claiming an interest in the parcel. The 269 claim of lien secures all unpaid rents and assessments that are 270 due and that may accrue after the claim of lien is recorded and 271 through the entry of a final judgment, as well as interest and 272 all reasonable costs and attorney fees incurred by the 273 association incident to the collection process. Upon payment in 274 full, the person making the payment is entitled to a 275 satisfaction of the lien. 276 (c) By recording a notice in substantially the following 277 form, a unit owner or the unit owner’s agent or attorney may 278 require the association to enforce a recorded claim of lien 279 against his or her cooperative parcel: 280 281 NOTICE OF CONTEST OF LIEN 282 283 TO: ...(Name and address of association)...: 284 285 You are notified that the undersigned contests the 286 claim of lien filed by you on ...., ...(year)..., and 287 recorded in Official Records Book .... at Page ...., 288 of the public records of .... County, Florida, and 289 that the time within which you may file suit to 290 enforce your lien is limited to 90 days from the date 291 of service of this notice. Executed this .... day of 292 ...., ...(year).... 293 Signed: ...(Owner or Attorney)... 294 295 After notice of contest of lien has been recorded, the clerk of 296 the circuit court shall mail a copy of the recorded notice to 297 the association by certified mail, return receipt requested, at 298 the address shown in the claim of lien or most recent amendment 299 to it and shall certify to the service on the face of the 300 notice. Service is complete upon mailing. After service, the 301 association has 90 days in which to file an action to enforce 302 the lien. If the action is not filed within the 90-day period, 303 the lien is void. However, the 90-day period shall be extended 304 for any length of time during which the association is prevented 305 from filing its action because of an automatic stay resulting 306 from the filing of a bankruptcy petition by the unit owner or by 307 any other person claiming an interest in the parcel. 308 (d) A release of lien must be in substantially the 309 following form: 310 311 RELEASE OF LIEN 312 The undersigned lienor, in consideration of the final payment in 313 the amount of $...., hereby waives and releases its lien and 314 right to claim a lien for unpaid assessments through ...., 315 ...(year)..., recorded in Official Records Book .... at Page 316 ...., of the public records of .... County, Florida, for the 317 following described real property: 318 319 THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO. .... 320 OF ...(NAME OF COOPERATIVE)..., A COOPERATIVE AS SET 321 FORTH IN THE COOPERATIVE DOCUMENTS AND THE EXHIBITS 322 ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED 323 IN OFFICIAL RECORDS BOOK ...., PAGE ...., OF THE 324 PUBLIC RECORDS OF .... COUNTY, FLORIDA. 325 326 ...(Signature of Authorized Agent)... ...(Signature of 327 Witness)... 328 ...(Print Name)... ...(Print Name)... 329 330 ...(Signature of Witness)... 331 ...(Print Name)... 332 333 Sworn to (or affirmed) and subscribed before me this .... day of 334 ...., ...(year)..., by ...(name of person making statement).... 335 ...(Signature of Notary Public)... 336 ...(Print, type, or stamp commissioned name of Notary Public)... 337 Personally Known.... OR Produced.... as identification. 338 Section 6. Present paragraphs (d) and (e) of subsection (1) 339 of section 720.3085, Florida Statutes, are redesignated as 340 paragraphs (e) and (f), respectively, paragraph (a) of 341 subsection (1), paragraph (b) of subsection (3), and subsections 342 (4) and (5) are amended, and a new paragraph (d) is added to 343 subsection (1) of that section, to read: 344 720.3085 Payment for assessments; lien claims.— 345 (1) When authorized by the governing documents, the 346 association has a lien on each parcel to secure the payment of 347 assessments and other amounts provided for by this section. 348 Except as otherwise set forth in this section, the lien is 349 effective from and shall relate back to the date on which the 350 original declaration of the community was recorded. However, as 351 to first mortgages of record, the lien is effective from and 352 after recording of a claim of lien in the public records of the 353 county in which the parcel is located. This subsection does not 354 bestow upon any lien, mortgage, or certified judgment of record 355 on July 1, 2008, including the lien for unpaid assessments 356 created in this section, a priority that, by law, the lien, 357 mortgage, or judgment did not have before July 1, 2008. 358 (a) To be valid, a claim of lien must state the description 359 of the parcel, the name of the record owner, the name and 360 address of the association, the assessment amount due, and the 361 due date. The claim of lien secures all unpaid assessments that 362 are due and that may accrue subsequent to the recording of the 363 claim of lien and before entry of a certificate of title, as 364 well as interest, late charges, and reasonable costs and 365 attorneyattorney’sfees incurred by the association incident to 366 the collection process. The person making payment is entitled to 367 a satisfaction of the lien upon payment in full. 368 (d) A release of lien must be in substantially the 369 following form: 370 371 RELEASE OF LIEN 372 The undersigned lienor, in consideration of the final payment in 373 the amount of $...., hereby waives and releases its lien and 374 right to claim a lien for unpaid assessments through ...., 375 ...(year)..., recorded in Official Records Book .... at Page 376 ...., of the public records of .... County, Florida, for the 377 following described real property: 378 379 (PARCEL NO. .... OR LOT AND BLOCK)_ OF ...(subdivision 380 name)... SUBDIVISION AS SHOWN IN THE PLAT THEREOF, 381 RECORDED AT PLAT BOOK ...., PAGE ...., OF THE OFFICIAL 382 RECORDS OF .... COUNTY, FLORIDA. 383 384 (or insert appropriate metes and bounds description 385 here) 386 387 ...(Signature of Authorized Agent)... ...(Signature of 388 Witness)... 389 ...(Print Name)... ...(Print Name)... 390 391 ...(Signature of Witness)... 392 ...(Print Name)... 393 394 Sworn to (or affirmed) and subscribed before me this .... day of 395 ...., ...(year)..., by ...(name of person making statement).... 396 ...(Signature of Notary Public)... 397 ...(Print, type, or stamp commissioned name of Notary Public)... 398 Personally Known.... OR Produced.... as identification. 399 (3) Assessments and installments on assessments that are 400 not paid when due bear interest from the due date until paid at 401 the rate provided in the declaration of covenants or the bylaws 402 of the association, which rate may not exceed the rate allowed 403 by law. If no rate is provided in the declaration or bylaws, 404 interest accrues at the rate of 18 percent per year. 405 (b) Any payment received by an association and accepted 406 shall be applied first to any interest accrued, then to any 407 administrative late fee, then to any costs and reasonable 408 attorneyattorney’sfees incurred in collection, and then to the 409 delinquent assessment. This paragraph applies notwithstanding 410 any restrictive endorsement, designation, or instruction placed 411 on or accompanying a payment. A late fee is not subject to the 412 provisions of chapter 687 and is not a fine. 413 (4) A homeowners’ association may not file a record of lien 414 against a parcel for unpaid assessments unless a written notice 415 or demand for past due assessments as well as any other amounts 416 owed to the association pursuant to its governing documents has 417 been made by the association. The written notice or demand must: 418 (a) Provide the owner with 45 days following the date the 419 notice is deposited in the mail to make payment for all amounts 420 due, including, but not limited to, any attorney’s fees and 421 actual costs associated with the preparation and delivery of the 422 written demand. The notice must be in substantially the 423 following form: 424 425 NOTICE OF INTENT TO RECORD A CLAIM OF LIEN 426 427 Re: Parcel or (lot/block) .... of ...(name of association)... 428 429 The following amounts are currently due on your account to .... 430 Association, and must be paid within forty-five (45) days after 431 your receipt of this letter. This letter shall serve as the 432 Association’s notice of intent to record a Claim of Lien against 433 your property after forty-five (45) days from your receipt of 434 this letter, unless you pay in full the amounts set forth below: 435 436 Maintenance due ...(dates)... ________ $.... 437 Late fee, if applicable $.... 438 Interest through ...(dates)...* $.... 439 Certified mail charges $.... 440 Other costs $.... 441 442 TOTAL OUTSTANDING $.... 443 444 *Interest accrues at the rate of .... percent per annum. 445 446 ================= T I T L E A M E N D M E N T ================ 447 And the title is amended as follows: 448 Delete lines 5 - 26 449 and insert: 450 451