1. The Third District Court of Appeals in Florida has ruled that associations can now be jointly and severally liable for past-due assessments in certain situations.
2. The case of Aventura Management, LLC v. Spiaggia involved Spiaggia Condominium Association initiating a lien foreclosure against a unit owner for unpaid assessments.
3. Spiaggia later relinquished its ownership interest to Aventura, who became the subsequent unit owner.
4. Spiaggia attempted to recover past-due assessments from Aventura, citing Florida Statutes, but Aventura disagreed, arguing that Spiaggia was the subsequent unit owner responsible for the assessments. 1. Associations in Florida are now jointly and severally liable for past-due assessments if they choose to purchase a foreclosed unit.
2. Aventura was not held liable for past-due assessments, late fees, and interest because Spiaggia became the subsequent owner of the unit.
3. The decision changes the strategy for associations in this situation, as they can no longer rely on the statutory ability to collect unpaid assessments from subsequent purchasers. – Florida associations must now conduct extensive analysis before deciding to bid on a foreclosed property and take title to it.
– If an association can earn more in rent revenue than what is owed in delinquent assessments, it may decide to take title to the property.
– If the previous owner was also in default of the mortgage, the association may decide it’s not worth taking title to the property.
– The bank foreclosing its mortgage may result in the association not owning the property long enough for rent payments to cover its past-due assessment losses.
– The association’s intervening ownership may preclude it from collecting all of its past-due assessments from the subsequent property owner, based on the Court’s ruling in Aventura v. Spiaggia.
https://www.jimersonfirm.com/blog/2013/04/florida-associations-can-be-jointly-and-severally-liable-for-past-due-assessments-after-lien-foreclosures/
Leave a Reply