1. Review the governing documents: The first step in collecting assessment revenue through a condominium assessment lien is to review the governing documents of the condominium association. This includes the declaration of condominium, articles of incorporation, and bylaws, as well as any rules and regulations. These documents will outline the specific procedures and requirements for imposing and enforcing a condominium assessment lien.
2. Provide notice to the unit owner: Once the necessary steps outlined in the governing documents have been followed, the next step is to provide notice to the unit owner of the delinquent assessments. This notice should include the amount owed, the due date, and information about the potential consequences of non-payment, including the imposition of a condominium assessment lien on the unit.
3. Record the condominium assessment lien: After providing notice to the unit owner, the condominium association must record the condominium assessment lien with the county clerk where the property is located. This creates a public record of the lien and notifies any potential buyers or lenders of the unit owner’s delinquent status.
4. Pursue foreclosure if necessary: If the unit owner continues to refuse to pay the delinquent assessments, the condominium association may need to pursue foreclosure action to enforce the condominium assessment lien. This involves filing a lawsuit against the unit owner and potentially selling the unit at a foreclosure sale to satisfy the unpaid assessments.
5. Collect the assessment revenue: Once the condominium assessment lien has been enforced and the delinquent assessments have been paid, the condominium association can collect the assessment revenue owed. This may involve distributing the funds to cover ongoing expenses or reserve contributions, depending on the specific needs of the community.
By following these five steps, a condominium association can effectively collect assessment revenue through a condominium assessment lien, ensuring the financial health and stability of the community. – Delinquency notices should be sent to remind unit owners of their payment obligations before engaging a law firm.
– A formal notice of intent to lien must be sent by a law firm, with specific requirements, and a waiting period of 30 days for condominium associations and 45 days for homeowners associations.
– The claim of lien, with the unit legal description, owner’s name, and delinquency description, must be created and recorded by the association attorney.
– After the lien is recorded, a notice of intent to foreclose must be sent with an additional waiting period of 30 days for condominium associations and 45 days for homeowners associations.
– If necessary, foreclosure action can be taken, which may result in settlement or the taking of the unit. – Only an attorney may draft a condominium assessment lien in Florida due to the legal statement it contains.
– Florida condominium associations have a one year timeline to file suit after the lien is filed, and missing this deadline requires the whole lien process to be redone.
– It is important for associations to follow the proper steps and timeline to avoid forfeiting what is due to the community.
https://www.jimersonfirm.com/blog/2018/08/florida-condominium-assessment-lien/
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