Sep 30

Florida Homeowner Associations: Who is responsible for past due homeowner association assessments when title is acquired through foreclosure or deed in lieu of foreclosure?

House Bill 7119, effective July 1, 2013, amends several provisions of Chapter 720, the Florida Homeowners’ Association Statute.

As members of homeowners associations, you are encouraged to become familiar with these amendments.

Of special interest to purchasers of real estate in Florida, Florida Statute Section 720.3085, was amended to exclude the homeowners’ association that acquires title to a parcel through foreclosure or deed in lieu of foreclosure from responsibility for unpaid assessments having come due prior to the current owner’s acquisition of title.  The statute continues to require a parcel owner to be jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of the transfer of title.  Yet, the term “previous owner” excludes an association that acquires title to a  parcel through foreclosure or deed in lieu of foreclosure. Therefore, a parcel owner’s liability for prior unpaid assessments is limited to the unpaid assessments having come due prior to the homeowners’ association having acquired title.

Note the amendment to the definition of “previous owner” as set forth in Section 720.3085 did not extend to Chapters 718 and 719 of Florida Statutes governing condominiums and cooperatives at this time.