I bought a condo thru auction and the HOA asks me to pay for 3 years of HOA dues.
According to the Florida law 718-111, is it limited to 12 months of HOA dues or 1% of the mortgage value (the lesser amount) ? or do I have to pay the entire amount..??
On which occasion the 12 months HOA dues or 1% mortgage value applies..??
The "safe harbor" provision limiting the past due assessments to 12 months or 1% of the mortgage value applies to the mortgage company only and not anyone who purchases in a foreclosure sale or even purchases from the bank after the bank forecloses.
FS 718.111(1) states that a purchaser is liable for the past due assessments of any and all previous owners, regardless of how title was acquired.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.
Attorney Stage is correct. You are obligated to pay all of the back HOA dues. This is one of the problems that many people run into when they get involved in foreclosure auction sale purchases without understanding the process. While there may be bargains at foreclosure sales, there are many hidden pitfalls. People thinking about purchasing property at foreclosue sales should consult with an experienced real estate lawyer to make sure that they understand the process before they put their money at risk.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
The cap you are referring to pertains only to a circumstance when "a first mortgagee or its succesor or assignees...acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due before the mortgagee's acquisition of title". This is set out in 718.116 (b)(1)". Buying the condo at the foreclosure sale would not position you to the benefit of this cap - it is for the benefit of the foreclosing entity and or its successors or assigns only.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
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