Florida Senate - 2015 SB 1066
By Senator Bean
4-00740A-15 20151066__
1 A bill to be entitled
2 An act relating to residential properties; amending
3 ss. 718.116 and 720.3085, F.S.; revising the
4 limitations on the liability of a first mortgagee or
5 its successor or assignee who acquires title to a unit
6 or parcel by foreclosure or by deed in lieu of
7 foreclosure; requiring a first mortgagee or its
8 successor or assignee to be liable for all assessments
9 and related costs and fees which accrue from the date
10 of the judgment of foreclosure or deed in lieu of
11 foreclosure; providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (b) of subsection (1) of section
16 718.116, Florida Statutes, is amended to read:
17 718.116 Assessments; liability; lien and priority;
18 interest; collection.—
19 (1)
20 (b)1. The liability of a first mortgagee or its successor
21 or assignee assignees who acquires acquire title to a unit by
22 foreclosure or by deed in lieu of foreclosure for the unpaid
23 assessments that became due before the mortgagee’s acquisition
24 of title is limited to the greater lesser of:
25 a. The unit’s unpaid common expenses and regular periodic
26 assessments which accrued or came due during the 12 months
27 immediately preceding the judgment of foreclosure or deed in
28 lieu of foreclosure acquisition of title and for which payment
29 in full has not been received by the association; or
30 b. One percent of the original mortgage debt. The
31 provisions of This paragraph applies apply only if the first
32 mortgagee joined the association as a defendant in the
33 foreclosure action. Joinder of the association is not required
34 if, on the date the complaint is filed, the association was
35 dissolved or did not maintain an office or agent for service of
36 process at a location which was known to or reasonably
37 discoverable by the mortgagee.
38 2. A first mortgagee or its successor or assignee shall be
39 liable for all assessments and related costs and fees which
40 accrue from the date of the judgment of foreclosure or deed in
41 lieu of foreclosure.
42 3. An association, or its successor or assignee, that
43 acquires title to a unit through the foreclosure of its lien for
44 assessments is not liable for any unpaid assessments, late fees,
45 interest, or reasonable attorney attorney’s fees and costs that
46 came due before the association’s acquisition of title in favor
47 of any other association, as defined in s. 718.103(2) or s.
48 720.301(9), which holds a superior lien interest on the unit.
49 This subparagraph is intended to clarify existing law.
50 Section 2. Paragraph (c) of subsection (2) of section
51 720.3085, Florida Statutes, is amended, and paragraph (e) is
52 added to that subsection, to read:
53 720.3085 Payment for assessments; lien claims.—
54 (2)
55 (c) Notwithstanding anything to the contrary contained in
56 this section, the liability of a first mortgagee, or its
57 successor or assignee as a subsequent holder of the first
58 mortgage who acquires title to a parcel by foreclosure or by
59 deed in lieu of foreclosure for the unpaid assessments that
60 became due before the mortgagee’s acquisition of title, shall be
61 the greater lesser of:
62 1. The parcel’s unpaid common expenses and regular periodic
63 or special assessments that accrued or came due during the 12
64 months immediately preceding the judgment of foreclosure or deed
65 in lieu of foreclosure acquisition of title and for which
66 payment in full has not been received by the association; or
67 2. One percent of the original mortgage debt.
68
69 The limitations on first mortgagee liability provided by this
70 paragraph apply only if the first mortgagee filed suit against
71 the parcel owner and initially joined the association as a
72 defendant in the mortgagee foreclosure action. Joinder of the
73 association is not required if, on the date the complaint is
74 filed, the association was dissolved or did not maintain an
75 office or agent for service of process at a location that was
76 known to or reasonably discoverable by the mortgagee.
77 (e) A first mortgagee or its successor or assignee shall be
78 liable for all assessments and related costs and fees which
79 accrue from the date of the judgment of foreclosure or deed in
80 lieu of foreclosure until title is transferred to a third-party
81 purchaser.
82 Section 3. This act shall take effect July 1, 2015.