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Started by FranX • 4 replies • 1245 views

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FranX (Florida)
Posts: 2

Posted:

I live in Florida, volunteer my time as VP, BOD to a small community in Florida. My question is kind of confusing me?
He had an owner obviously years into arrears, the prop mgmt company did little or nothing to anyone who chose or could not pay fees/assessments.
We the HOA decided to step in and get a lien and cert of title with the hopes of renting unit out. Never happend (great prop mgmt co huh), anyway, besides the blame game here is my confusion.

The property was sold at auction to a 3rd pty. They are refusing and stating that they are not liable for any arrearage of fees/assessments as they were not the original mortgage holders ( orig was BOA and thru BOA Fannie Mae bought).

They are actually saying that the HOA ia liable for any and all unpaid assessments incurred on that property until they gained title of property, unsure who is correct and how this can be possible.

1 - where is the common sense in getting HOA to file liens and cert of titles if units are unrentable immediately?
2 - is this 3rd pty owner correct? they owe nothing (estoppel letter was issued) and they just refused payment of prior/previous debts.

any and all information will be appreciated.

Thank you
Fran

TimB4 (Tennessee)
Posts: 21,059

Posted:

Hi Fran,

Welcome to the forum.

I'm a little confused, did the HOA actually foreclose on the property and take possession?

FL law, specifically 720.3085 2(b), does specify that the new owner is responsible for the debts of the previous owner. The issue will be if the HOA actually foreclosed and took possession or not.

If the Association took possession, then the HOA became responsible for the delinquent fees and the fees that accrued during it's possession of the property. The new owner would be responsible for the fees from the date of purchase forward. Additionally they would be jointly responsible for the past fees while the Association owned the property.

So the law allows the Association to collect those fees from the new owner but also allows the new owner to recoup those fees from the previous owner. Therefore, if the Association did take possession of the property, they effectively ate the fees.

Example:

Owner 1, owed $100.
Association foreclosed on the property and became owner 2.
Owner 2 is now responsible for that $100 plus any fees going forward but may seek payment for that $100 from owner 1 in court.
A third party purchases the property and becomes owner 3.
Owner 3 is now responsible for that $100 but, as the law allows, may recoup that $100 from the previous owner, the Association.
Hence, in reality, the Association is still paying the $100.

Therefore, in FL, if the Association did take possession, it is effectively a wash and the new owner who took possession after the Association would only be responsible for fees going forward.

FranX (Florida)
Posts: 2

Posted:

thank you so much - for your reply, makes absolutely no sense in such a small community as mine to place lien nor gain cert of title to any unit as all it is, is nothing more than accruing more expenses (legal fees/filing costs) and headaches.... thanks!!!!! appreciate the input

TimB4 (Tennessee)
Posts: 21,059

Posted:

recording a lien is always good as it protects you if the property is sold.

Foreclosing on the lien should only be done to stop the bleeding (so to speak) rather then being hopeful that it would recoup past fees.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 05/20/2013 6:40 AM
recording a lien is always good as it protects you if the property is sold.

Foreclosing on the lien should only be done to stop the bleeding (so to speak) rather then being hopeful that it would recoup past fees.

This is sound advice.

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