Florida-Renewing liens annually?

Hi all,

I am president of a FL HOA. Per FL statutes, liens are good for 5 years. Our liens contain verbiage that states the existing lien also covers any amounts accruing after the filing of the lien.

Our management co wants to "renew" our liens annually (at a cost to us, of course)based on their explanation that title co's do not normally look back past 2 years upon transfer of title and would not "find" our lien if it is not renewed annually. Can I get some feedback on how other FL HOAs handle liens? To renew annually or let it ride 5 years as the statute allows?

Darn the no edit

Florida Condominium Association Liens

A condominium unit owner is liable for all assessments which come due while he or she owns the unit. See Section 718.116 (1), F.S. The association has a lien to secure payment of assessments. See Section 718.116 (5)(a), F.S. Assessment liens recorded for more than one year may be disregarded unless, during that time, an enforcement action is commenced. See Section 718.116 (5)(b), F.S. Where a unit owner files a Notice of Contest of Lien, the association has only 90 days from the date a copy of the notice was mailed by the clerk of court1 to the association in which to enforce the lien. The recorded Notice of Contest of Lien will contain a certificate by the Clerk of the Circuit Court stating the date of mailing. See Section 718.116 (5)(b), F.S.

The lien is effective from and shall relate back to the recording of the original declaration of condominium, or, in the case of a lien on a parcel located in a phase condominium, the last to occur of the recording of the original declaration or an amendment thereto creating the parcel. See Section 718.116 (5)(a), F.S. As to first mortgages of record, the lien is effective from and after recording of a claim of lien in the public records of the county in which the condominium parcel is located. See Section 718.116 (5)(a), F.S. However, second and third mortgages recorded after April 1, 1992, on condominium units are inferior to a condominium assessment lien. A satisfaction or release of the condominium lien must be obtained or an exception must be made in the policy.

Nancy,

That is my thought exactly. Why continue to throw good money after bad with a annual renewal when (1) the lien is legally valid for 5 years anyway (FL Statute 95.11 section 2b.see below) OR (2)in the end our recovery will be minimal if the house undergoes foreclosure and the safe harbor provision comes into play, which would limit recovery to one year of assessments, which in our case is only $350.

Today the explanation I got from our MGT. Co. is that collection attorneys recommend an annual renewal due to Title Co.s rarely looking back further than two years at transfer of title, so a lien aged greater than 1-2 years might not be satisfied at closing.

?????? I would think this would be foolish practice for a title company and make them liable somehow....

Has anyone had experience with this? Because I still suspect our HOA is being milked unnecessarily by the Mgt. Co. with this "renewal" practice.

95.11 Limitations other than for the recovery of real property.—Actions other than for recovery of real property shall be commenced as follows:
(1) WITHIN TWENTY YEARS.—An action on a judgment or decree of a court of record in this state.
(2) WITHIN FIVE YEARS.—
(a) An action on a judgment or decree of any court, not of record, of this state or any court of the United States, any other state or territory in the United States, or a foreign country.
(b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument, except for an action to enforce a claim against a payment bond, which shall be governed by the applicable provisions of paragraph (5)(e), s. 255.05(10), s. 337.18(1), or s. 713.23(1)(e).

I have heard that too....

I am often told by the Mgt. Co. (when I question) that it is my "fiduciary duty" to do this or that at their recommendation, when common sense tells me it seems more in keeping with my "fiduciary duty" to NOT to what they suggest. The lien question being a prime example.