Bill Text: FL S0164 | 2010 | Regular Session | Introduced

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Bill Title: Foreclosure of Condominium Units [CPSC]

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2010-04-30 - Died in Committee on Regulated Industries [S0164 Detail]

Download: Florida-2010-S0164-Introduced.html

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Florida Senate - 2010                                     SB 164 
 
By Senator Lynn 
7-00105-10                                             2010164__ 
1                        A bill to be entitled 
2         An act relating to the foreclosure of condominium 
3         units; amending s. 718.116, F.S.; requiring a first 
4         mortgagee to pay a certain portion of unpaid 
5         assessments to the condominium association prior to 
6         the transfer of title under certain circumstances; 
7         providing an effective date. 
8 
9  Be It Enacted by the Legislature of the State of Florida: 
10 
11         Section 1. Subsections (1) and (2) of section 718.116, 
12  Florida Statutes, are amended to read: 
13         718.116 Assessments; liability; lien and priority; 
14  interest; collection.— 
15         (1)(a) A unit owner, regardless of how his or her title is 
16  has been acquired, including by purchase at a foreclosure sale 
17  or by deed in lieu of foreclosure, is liable for all assessments 
18  that which come due while he or she is the unit owner. 
19  Additionally, 
20         (a) A unit owner is jointly and severally liable with the 
21  previous owner for all unpaid assessments that came due up to 
22  the time of transfer of title. This liability is without 
23  prejudice to any right the owner may have to recover from the 
24  previous owner the amounts paid by the owner. 
25         (b) The liability of a first mortgagee or its successor or 
26  assignees who acquire title to a unit by foreclosure or by deed 
27  in lieu of foreclosure for the unpaid assessments that became 
28  due prior to the mortgagee’s acquisition of title is limited to 
29  the lesser of: 
30         1. The unit’s unpaid common expenses and regular periodic 
31  assessments which accrued or came due during the 6 months 
32  immediately preceding the acquisition of title and for which 
33  payment in full has not been received by the association; or 
34         2. One percent of the original mortgage debt. The 
35  provisions of this paragraph apply only if the first mortgagee 
36  joined the association as a defendant in the foreclosure action. 
37  Joinder of the association is not required if, on the date the 
38  complaint is filed, the association was dissolved or did not 
39  maintain an office or agent for service of process at a location 
40  which was known to or reasonably discoverable by the mortgagee. 
41         (b)(c) The person acquiring title shall pay the amount owed 
42  to the association within 30 days after transfer of title. 
43  Failure to pay the full amount when due entitles shall entitle 
44  the association to record a claim of lien against the parcel and 
45  proceed in the same manner as provided in this section for the 
46  collection of unpaid assessments. 
47         (c)(d) With respect to each timeshare unit, each owner of a 
48  timeshare estate therein is jointly and severally liable for the 
49  payment of all assessments and other charges levied against or 
50  with respect to that unit pursuant to the declaration or bylaws, 
51  except to the extent that the declaration or bylaws may provide 
52  to the contrary. 
53         (e) Notwithstanding the provisions of paragraph (b), a 
54  first mortgagee or its successor or assignees who acquire title 
55  to a condominium unit as a result of the foreclosure of the 
56  mortgage or by deed in lieu of foreclosure of the mortgage shall 
57  be exempt from liability for all unpaid assessments attributable 
58  to the parcel or chargeable to the previous owner which came due 
59  prior to acquisition of title if the first mortgage was recorded 
60  prior to April 1, 1992. If, however, the first mortgage was 
61  recorded on or after April 1, 1992, or on the date the mortgage 
62  was recorded, the declaration included language incorporating by 
63  reference future amendments to this chapter, the provisions of 
64  paragraph (b) shall apply. 
65         (d)(f) The provisions of this subsection are intended to 
66  clarify existing law, and are shall not be available if in any 
67  case where the unpaid assessments sought to be recovered by the 
68  association are secured by a lien recorded prior to the 
69  recording of the mortgage. Notwithstanding the provisions of 
70  chapter 48, the association is shall be a proper party to 
71  intervene in any foreclosure proceeding to seek equitable 
72  relief. 
73         (g) For purposes of this subsection, the term “successor or 
74  assignee” as used with respect to a first mortgagee includes 
75  only a subsequent holder of the first mortgage. 
76         (e)(2) The liability for assessments may not be avoided by 
77  waiver of the use or enjoyment of any common element or by 
78  abandonment of the unit for which the assessments are made. 
79         (2) The liability of a first mortgagee or its successor or 
80  assignee who acquires title to a unit by foreclosure or by deed 
81  in lieu of foreclosure for unpaid assessments that became due 
82  before the mortgagee’s acquisition of title is limited to the 
83  lesser of the unit’s unpaid common expenses and regular periodic 
84  assessments which accrued or came due during the 6 months 
85  immediately preceding the acquisition of title and for which 
86  payment in full has not been received by the association, or 1 
87  percent of the original mortgage debt. 
88         (a) If a first mortgagee or its successor or assignee has 
89  not acquired title to an owner-occupied unit 6 months after the 
90  date on which a foreclosure action is filed, at the option of 
91  the association, the first mortgagee or its successor or 
92  assignee shall pay to the association the lesser of the unit’s 
93  unpaid common expenses and regular periodic assessment which 
94  accrued or came due during the 6 months or 1 percent of the 
95  original mortgage debt within 30 days after the end of the 6 
96  months. The liability of the first mortgagee or its successor or 
97  assignee for all unpaid assessments when title to a unit is 
98  acquired by foreclosure or by recorded deed in lieu of 
99  foreclosure is limited to the payment required under this 
100  paragraph. The association must return the amount paid if the 
101  foreclosure proceeding is dismissed or rescinded. 
102         (b) Unless the mortgage declaration included language 
103  incorporating by reference future amendments to this chapter on 
104  the date the mortgage was recorded, a first mortgagee or its 
105  successor or assignees who acquire title to a condominium unit 
106  is exempt from liability for all unpaid assessments attributable 
107  to the parcel or chargeable to the previous owner which came due 
108  before acquisition of title if the first mortgage was recorded 
109  before April 1, 1992. 
110         (c) The provisions of this paragraph apply only if the 
111  first mortgagee joined the association as a defendant in the 
112  foreclosure action. Joinder of the association is not required 
113  if, on the date the complaint is filed, the association was 
114  dissolved or did not maintain an office or agent for service of 
115  process at a location that was known to or reasonably 
116  discoverable by the mortgagee. 
117         (d) For purposes of this subsection, the term “successor or 
118  assignee” includes only a subsequent holder of the first 
119  mortgage. 
120         Section 2. This act shall take effect July 1, 2010.