1. The Florida Condominium Act outlines the process for perfecting a condominium assessment lien for delinquent assessments, creating an interest in real property for the association.
2. The association has a “perpetual” right to lien, which takes priority based on the date the declarations were recorded.
3. Only attorneys who are members of The Florida Bar may draft liens for Florida association liens, as non-Florida attorneys’ preparation of liens on Florida real property constitutes the unauthorized practice of law.
4. The claim of lien must include the description of the parcel encumbered, the name of the record owner, the amount due, and due dates, and must be signed by an officer or authorized agent of the association and recorded in the public records of the county in which the condominium parcel is located.
5. The condominium declarations may have exemptions to liens, such as developer exemptions, so it is important to confirm the exact nature of the condominium assessment lien rights with the community documents. 1. Interest accrues on delinquent assessments at 18% per annum if the declaration of condominium does not specify a rate.
2. The association may levy a late charge of the greater of $25 or 5% of the delinquent assessment installment.
3. The association must send a Notice of Intent to Lien letter to the delinquent unit owner at least 30 days before recording the lien in the public records.
4. The notice of the association’s intent to record a lien must be sent by first class and registered or certified mail, return receipt requested.
5. After the lien is recorded, the association must send another notice of intent to foreclose on the condominium lien at least 30 days before filing a foreclosure action.
6. If the notice of intent to foreclose is not given at least 30 days before the foreclosure action is filed and the unpaid assessments are paid before a final judgment, the association cannot recover attorney’s fees or costs in the foreclosure action. – Notice of Contest of Lien can shorten the time for an association to file suit by recording a notice of contest of lien.
– After notice of contest of lien has been recorded, the association has 90 days to file an action to enforce the lien, or the lien is void.
– Section 718.116 was amended in 2014 to include a form release of lien that requires two subscribing witnesses and a notary.
– Condominium association board members and managers should understand the timing of notices and the process to follow when perfecting and releasing assessment liens.
https://www.jimersonfirm.com/blog/2016/08/condominium-assessment-liens-florida-part-2/
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