The Legalities of Association Fines

I’ve seen associations that do not comply with the law that empowers them to “fine” owners. So here are some of the legalities of association fines in Florida:
1). Was the fine imposed by the President, the Board, the Manager, or the violations committee? The Board must levy the fine and the committee must either approve or reject it.
2) Was a fine included as part of a lien on your property? If so, did you know:
a) condos cannot ...

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Accord and Satisfaction eliminated for condominium assessments

On August 24, 2016, the Florida 2d District Court of Appeal decided a significant case that benefits condominium associations.

In Madison at Soho II Condominium Association vs Devo Acquisitions, the association demanded approximately $28,000, plus costs and attorney fees, for 6 years of unpaid assessments from Devo after it acquired title to a Unit. Under 718.116 of the condo statute, a buyer is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the ...

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Lien stripping in Chapter 7 eliminated by Supreme Court

An important decision was announced on June 1, 2015 by the United States Supreme Court.   In a unanimous decision arising from two cases in Florida, the Court ruled in Bank of America v. Caulkett that a person who files a Petition for Bankruptcy under Chapter 7 may not cancel a junior lien when the amount owed on the senior lien exceeds the value of the property.  The only condition is that the senior lien must be a secured and allowed ...

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Court dashes hopes of associations to nullify mortgages.

In a major decision, the Third District Court of Appeal has issued its long-awaited opinion in a case watched closely by condominium and home owner associations around the state. In Deutsche Bank Trust Co v. Beauvais, the entire Court decided on April 13, 2016 that a mortgage holder who files a second foreclosure suit more than 5 years after a first suit that accelerated the entire mortgage debt and was later dismissed is not barred from enforcing the mortgage, even ...

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Who can serve on the Condominium Board of Directors?

The condominium’s governing documents will specify who is eligible to serve on the Board of Directors. Typically, but not always, a director must be a unit owner. A unit owner is defined in the statute as the record owner of legal title. That means in the case of units owned by an individual(s), the owner is the person(s) whose name(s) is on the recorded deed. In the case of ownership in the name of a corporation or partnership, the condominium ...

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Can a condominium association amend the Declaration to restrict an owner’s right to lease her unit?

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A condominium unit owner living “up north” purchased her unit in Miami as a rental investment property. She specifically purchased in her building with the idea of leasing it in the winter tourist season because the only restriction on leasing was that a lease must be a minimum of one month. Soon after her purchase, the Board announced it was proposing an ...

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When does a tenant need to vacate the property after a home mortgage is foreclosed?

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For several years during the foreclosure crisis, a federal law gave tenants under a bona fide lease of a federally-related mortgage loan the right to stay in the property for at least 90 days following the mortgage foreclosure.   That law expired on December 31, 2014.

In 2015, Florida Legislature enacted Section 83.561 which became effective June 2, 2015. Under that law, a purchaser ...

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Are images captured on the Association’s security cameras “official records”?

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Section 718.111(12) of Florida Statutes describes various “items” that constitute the “official records” of a condominium association.   In all, there are 16 subsections describing these items, but there’s been a recent but significant change in one of them.   Until this change, subsection 15 was a “catch-all” category that included as “official records” “all other records of the association not specifically included ...

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Tips to Avoid Bad Debt Losses

Few things are more frustrating to a business than to perform your service or sell your product and then not get paid. Unfortunately, it is bound to happen to almost everyone. To minimize the risk of not collecting your hard-earned money, make the following points a part of your business practice.

  1. Before extending credit to a business, check its background by doing the following:
    1. Write to the Sheriff of the County in which the business is located and ask if ...
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Owners Have Rights: Even Valid Condominium Rules Are Not Always Enforceable

Mr. and Mrs. Thomas live in a two-story townhouse-style condominium. They asked their condominium association board of directors for permission to install several indirect ground lights to illuminate the area in front of their unit at night, including the walkway from the parking lot. Citing a condominium rule that prohibited owners from installing any items on common property, including “lights” and “other objects”, the board denied the request. Is the owner out of luck?

“Common property” includes the land that is ...

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