Florida Senate - 2015 SB 1066 By Senator Bean 4-00740A-15 20151066__ 1 A bill to be entitled 2 An act relating to residential properties; amending 3 ss. 718.116 and 720.3085, F.S.; revising the 4 limitations on the liability of a first mortgagee or 5 its successor or assignee who acquires title to a unit 6 or parcel by foreclosure or by deed in lieu of 7 foreclosure; requiring a first mortgagee or its 8 successor or assignee to be liable for all assessments 9 and related costs and fees which accrue from the date 10 of the judgment of foreclosure or deed in lieu of 11 foreclosure; providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (b) of subsection (1) of section 16 718.116, Florida Statutes, is amended to read: 17 718.116 Assessments; liability; lien and priority; 18 interest; collection.— 19 (1) 20 (b)1. The liability of a first mortgagee or its successor 21 or assigneeassigneeswho acquiresacquiretitle to a unit by 22 foreclosure or by deed in lieu of foreclosure for the unpaid 23 assessments that became due before the mortgagee’s acquisition 24 of title is limited to the greaterlesserof: 25 a. The unit’s unpaid common expenses and regular periodic 26 assessments which accrued or came due during the 12 months 27 immediately preceding the judgment of foreclosure or deed in 28 lieu of foreclosureacquisition of titleand for which payment 29 in full has not been received by the association; or 30 b. One percent of the original mortgage debt.The31provisions ofThis paragraph appliesapplyonly if the first 32 mortgagee joined the association as a defendant in the 33 foreclosure action. Joinder of the association is not required 34 if, on the date the complaint is filed, the association was 35 dissolved or did not maintain an office or agent for service of 36 process at a location which was known to or reasonably 37 discoverable by the mortgagee. 38 2. A first mortgagee or its successor or assignee shall be 39 liable for all assessments and related costs and fees which 40 accrue from the date of the judgment of foreclosure or deed in 41 lieu of foreclosure. 42 3. An association, or its successor or assignee, that 43 acquires title to a unit through the foreclosure of its lien for 44 assessments is not liable for any unpaid assessments, late fees, 45 interest, or reasonable attorneyattorney’sfees and costs that 46 came due before the association’s acquisition of title in favor 47 of any other association, as defined in s. 718.103(2) or s. 48 720.301(9), which holds a superior lien interest on the unit. 49 This subparagraph is intended to clarify existing law. 50 Section 2. Paragraph (c) of subsection (2) of section 51 720.3085, Florida Statutes, is amended, and paragraph (e) is 52 added to that subsection, to read: 53 720.3085 Payment for assessments; lien claims.— 54 (2) 55 (c) Notwithstanding anything to the contrary contained in 56 this section, the liability of a first mortgagee, or its 57 successor or assignee as a subsequent holder of the first 58 mortgage who acquires title to a parcel by foreclosure or by 59 deed in lieu of foreclosure for the unpaid assessments that 60 became due before the mortgagee’s acquisition of title, shall be 61 the greaterlesserof: 62 1. The parcel’s unpaid common expenses and regular periodic 63 or special assessments that accrued or came due during the 12 64 months immediately preceding the judgment of foreclosure or deed 65 in lieu of foreclosureacquisition of titleand for which 66 payment in full has not been received by the association; or 67 2. One percent of the original mortgage debt. 68 69 The limitations on first mortgagee liability provided by this 70 paragraph apply only if the first mortgagee filed suit against 71 the parcel owner and initially joined the association as a 72 defendant in the mortgagee foreclosure action. Joinder of the 73 association is not required if, on the date the complaint is 74 filed, the association was dissolved or did not maintain an 75 office or agent for service of process at a location that was 76 known to or reasonably discoverable by the mortgagee. 77 (e) A first mortgagee or its successor or assignee shall be 78 liable for all assessments and related costs and fees which 79 accrue from the date of the judgment of foreclosure or deed in 80 lieu of foreclosure until title is transferred to a third-party 81 purchaser. 82 Section 3. This act shall take effect July 1, 2015.