Florida Statute s. 718.116
Florida condo assessment collection, liens, and foreclosure
Florida condominium associations have powerful tools to collect unpaid assessments, including an automatic lien on every unit and the right to foreclose. The statute also sets notice requirements that protect unit owners. Here is what the law says.
The obligation to pay assessments
Under F.S. 718.116, each unit owner is obligated to pay assessments levied by the association. The obligation runs with the unit: a new owner assumes liability for any unpaid assessments that were due at the time of transfer. Both the prior owner and the new owner are jointly and severally liable, although the new owner's liability may be limited in certain circumstances.
The automatic lien
The association has a lien on each condominium unit for any unpaid assessments, together with interest, late fees, and reasonable attorney fees and costs. This lien is automatic: it exists by operation of law from the date the assessment becomes due, whether or not a claim of lien has been recorded.
45-day notice before recording the lien
Before the association may record a claim of lien, it must deliver a written notice to the unit owner at least 45 days before recording. The notice must state the amount due (including the specific breakdown of assessments, interest, late fees, and costs), the intent to record a claim of lien, and the right of the owner to request a meeting with the board.
Lien priority
The association lien is subordinate to a first mortgage that was recorded before the claim of lien. However, there is a carve-out: if the first mortgagee acquires title through foreclosure (or deed in lieu of foreclosure), the association lien for assessments is not entirely extinguished.
The first mortgagee who acquires title remains liable for the lesser of:
- All unpaid assessments that came due during the 12 months immediately preceding the acquisition of title, or
- 1 percent of the original mortgage debt
This provision ensures the association recovers at least a portion of what is owed, even when a bank takes title through foreclosure.
The foreclosure process
After recording the claim of lien, the association may foreclose in the same manner as a mortgage on real property. The process involves:
- Delivering the 45-day notice (described above)
- Recording the claim of lien in the public records of the county
- Filing a foreclosure action in circuit court
- Obtaining a final judgment and sale of the unit
The unit owner has the right to cure the default at any time before entry of a final judgment by paying the full amount due, including attorney fees and costs.
Written collections policy
The association must adopt a written policy for the collection of assessments. The policy must describe the steps the association will take before filing a lien or foreclosure action, including notice requirements and the opportunity for the owner to meet with the board or its designee.
When to talk to a Florida condominium attorney
This page summarizes the statutory framework. Consult a Florida-licensed condominium attorney if:
- You have received a 45-day notice of intent to lien from the association
- The association has recorded a claim of lien and you wish to contest it
- You are a board member and need guidance on adopting a collections policy
- A foreclosure action has been filed against your unit
Source
F.S. 718.116 on flsenate.gov (governs assessment obligations, liens, and foreclosure).
JeLe Ventures LLC publishes this page as a statutory reference. It is not legal advice. Terms of Service