Blanket Receivership - Condominum in Florida

Started by NicholasL3 • 9 replies • 2007 views

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NicholasL3 (Florida)
Posts: 5

Posted:

If a receiver is granted a blanket receivership to rent units is a condominium does this over ride the community documents rental policy? What if the Association has a "No Rental" provision or a rental policy where units can't be rented for a certain time frame?

HoaC (Florida)
Posts: 95

Posted:

Who granted the Blanket receivership? Has your Condo been converted from the developer to an independent entity? If the developer is still in control, then he may be able to make provisions. If the BODs made the decision, then there had to have been a meeting for the vote. We need more information on this please!

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Is this by a court order? I would guess if the receiver was appointed by a court, then the receiver may have the authority to override the association's documents.

NicholasL3 (Florida)
Posts: 5

Posted:

This is an existing condo that has an extremely huge delinquency problem. The Board approved bringing in a receiver, who has been approved by the court. Can the receiver's actions in renting over ride the current communities documents pertaining to rental of units?

GlenL (Ohio)
Posts: 5,491

Posted:

Yes, further under FL718 he can collect the rents and apply them to the delinquencies. Sounds like a win for your COA when the receivership ends and the Board is once again in control, they can start enforcing the CC&R's as the individual leases expire.

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BruceF1 (Connecticut)
Posts: 2,535

Posted:

Nicholas,

Since the receiver was approved by the court, then I would say the answer would depend on the conditions set down by the court when the approval was granted. My guess is there must be something in writing somewhere that says what the receiver can and cannot do. You might start by checking with the clerk of court to see if you can view a copy of the court's approval of the receiver.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

The Board approved bringing in a receiver, who has been approved by the court.

Ugg... your screwed.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Nicholas,

As I understand it, the Receiver only needs to answer to the court and not the membership.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Nicholas,

Because your documents do allow for rentals under certain restrictions (time of ownership) then yes, the receiver assumes the ability to rent out the units. The association applied for receivership, the court granted that which then allows the receiver to function as a manager of those units. The time restriction would become a non issue under the court order to manage those units.

HoaC (Florida)
Posts: 95

Posted:

Glen is correct in his interpretation of the laws governing this issue. Most Florida Justices do not step outside case law and give more. There is enough case law to support this. Glen from Ohio posted the information correctly.

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