Unpaid assessments of previous owner are not always owed by the foreclosure buyer

In January, 2017, my client received title to a house he bought in December at a mortgage foreclosure sale. The mortgage had been recorded in 2005. Soon after, the homeowners association (HOA) demanded more than $19,000 from my client that it claimed was owed because the prior owner who was foreclosed did not pay assessments for years and the law passed in 2007 states that a buyer, including a purchaser at a foreclosure sale, is jointly and severally liable with ...

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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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Condominium Lien Foreclosures vs. the Rights of Mortgage Holders

One of my condominium Presidents asked me to advise him and his Board about the process of foreclosing a condominium lien and how the rights of the Association relate to the rights of a mortgage holder. For purposes of this article, a first mortgage holder will be referred to as a “Bank”, even though the first mortgage may be held by a bank, an individual, a mortgage company, pension fund, or other entity.

Discussion – The laws governing condominiums in Florida ...

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Withholding maintenance dues is not a good idea

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Condominium associations are not-for-profit corporations whose members elect directors to manage and operate their business affairs. In the course of such business operations, they incur expenses in the name of the association for various goods and services, such as building and landscaping maintenance and repairs, insurance, water and electric services, management fees, professional fees, and every other item that makes up ...

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