Can a Condo Association Make Homeowners Pay for Legal Fees?

– Florida Statutes and governing documents of a condominium association allow for recovery of attorneys’ fees in many legal actions.
– Section 718.116 of the Florida Statutes, also known as the Condominium Act, governs collections and provides for the recovery of attorneys’ fees.
– The section includes limitations on the recovery of attorneys’ fees, but generally allows for the association to recover fees from the beginning of its collections efforts. – Legal fees associated with lender foreclosure actions may not be recoverable by condominium associations if the governing documents do not include a provision allowing for the recovery of such fees.
– Legal fees incurred in actions involving the unit, such as a quiet title action, prior to the initiation of collections may not be recoverable under Section 718.116, Florida Statutes.
– Section 718.303(1), Florida Statutes, permits the recovery of attorneys’ fees for actions for damages or injunctive relief brought by the association or a unit owner. 1. Section 718.303, Florida Statutes, allows attorneys’ fees to be awarded to the prevailing party in legal actions for damages or injunctive relief.
2. A unit owner who prevails in an action against the association may be entitled to recover reasonable attorney’s fees and additional amounts to reimburse for their share of assessments used to fund the litigation.
3. If the association loses an action brought by a unit owner, it may be required to reimburse the unit owner for their share of the assessments used to fund the litigation.
4. The award of attorneys’ fees must be reasonable, regardless of the nature of the lawsuit.
5. Associations should pursue legal actions with a reasonable basis and legal support, as they may be liable for attorneys’ fees and assessments if they lose the case. 1. The declaration of the association is an important source for entitlement to attorneys’ fees.
2. The declaration sets forth guidelines for the community and is considered the rulebook for the community.
3. Many declarations include provisions similar to Florida Statutes Sections 718.116 and 718.303 for entitlement to attorneys’ fees.
4. Associations should consider including provisions for attorneys’ fees in situations beyond those governed by the Condominium Act.
5. The Condominium Act is favorable to Florida Condominium Associations for the recovery of attorneys’ fees in many instances.
6. Associations have the security of their governing documents to ensure they are not left with the bill when taking legal action.
7. The limitations discussed in the blog are not burdensome and should be discussed with the community association’s attorney when participating in specific actions.

https://www.jimersonfirm.com/blog/2015/12/condominium-association-recovery-of-attorneys-fees-in-florida/