Tax deed purchase and new amendment in Fl statue 07/14

[stephen4836]

I live in Florida
I have previously bought a tax deed property at a County auction and although there was a lien from the Home Owners Association they, or more importantly, their attorney accepted the debt had to be written off and as I understand it Cricket Properties, LLC v. Nassau Pointe HOA covers the reasoning.

I am now looking to buy another at auction and visited the office of the HOA to get some details on the Condo (it also happens that the HOA now own the Condo)
Whilst talking to a very helpful manager he mentioned that an amendment to Florida Statue 718.116 Section 10 a) 1) in July 2014 will mean I will have to pay the HOA dues as assessed. Some is on file at the court as a lien but that is less than he says is owed.
When I questioned this new law he gave me a printed copy of this.

This is what it says
718.116 Assessments; liability; lien and priority; interest; collection.—
(1)(a) A unit owner, regardless of how his or her title has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments which come due while he or she is the unit owner. Additionally, a unit owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the owner may have to recover from the previous owner the amounts paid by the owner. For the purposes of this paragraph, the term “previous owner” does not include an association that acquires title to a delinquent property through foreclosure or by deed in lieu of foreclosure. A present unit owner’s liability for unpaid assessments is limited to any unpaid assessments that accrued before the association acquired title to the delinquent property through foreclosure or by deed in lieu of foreclosure.

From what I understand the underlined part is the amendment and as I see it, does not cover this scenario.
I also wonder if as the HOA are now the owner that would exclude them.
My question is this,

Did an amendment added in July 2014 change the way tax deed liens are dealt with and therefore does not wipe out a debt?

Thank you

 

[justalayman]

how did the HOA become owners of the unit? What is the underlying debt that is allowing for the auction?

Did an amendment added in July 2014 change the way tax deed liens are dealt with and therefore does not wipe out a debt?

it changes what debts are enforceable and what debts are wiped out. It does not change how all debts are treated.

 

[stephen4836]

Thank you for the reply.

how did the HOA become owners of the unit? What is the underlying debt that is allowing for the auction?


it changes what debts are enforceable and what debts are wiped out. It does not change how all debts are treated.

Not sure how they became owners (they are shown on the property appraisers site as owners and the manager agreed they were). I know the dues were not paid, so maybe there is a way to take ownership through that route. They own at least two more units on there.
The question then is, is a lien from a HOA enforceable through tax deed sale?


Thank you

 

[justalayman]

The question then is, is a lien from a HOA enforceable through tax deed sale?


Thank you

718.116 Assessments; liability; lien and priority; interest; collection.—
(1)(a) A unit owner, regardless of how his or her title has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments which come due while he or she is the unit owner. Additionally, a unit owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the owner may have to recover from the previous owner the amounts paid by the owner. For the purposes of this paragraph, the term “previous owner” does not include an association that acquires title to a delinquent property through foreclosure or by deed in lieu of foreclosure. A present unit owner’s liability for unpaid assessments is limited to any unpaid assessments that accrued before the association acquired title to the delinquent property through foreclosure or by deed in lieu of foreclosure.

I have an issue with the wording of that statute as it says an owner is liable for any assessments that come due while they are the owner.

does that mean an assessment that was due prior to ownership, even if not paid before selling, is owed by the current owner or does it mean that since it became due before the current ownership, is it not owed by the current owner.

to me, it was due before the ownership and as such, now owed by the current owner but based on the verbiage following that, it is not what the statute is intending to mean. To me; come due would refer to when they actually became due, not that they remain due. That would be like saying they came due on a daily basis when in fact, they came due on the date they came due. Anything after that, they are past due.



in the second part involving an association, it matters how they became owners. If it is simply a unit the association owns for some reason, then the first part of the statute is invoked. If they took title through the means described, they have no liability for the old assessments as a prior owner would in the first part of the statute. If they were owners by means other than foreclosure of deed in lieu of foreclosure, if you purchased the unit you would have recourse against the association for delinquent dues you had to pay. If they took ownership by foreclosure or a deed in lieu of foreclosure, they would have no liability for the dues due prior to the foreclosure.

so, going with what I believe the law actually intended to mean, yes, the lien survives.

 

[stephen4836]

how did the HOA become owners of the unit? What is the underlying debt that is allowing for the auction?

I forgot to add that the none payment of property tax is the debt causing the auction. The HOA will not pay that.

 

[justalayman]

I forgot to add that the none payment of property tax is the debt causing the auction. The HOA will not pay that.

so what is the underlying cause of the auction?

 

[stephen4836]

I have rechecked the property appraisers site.
They have certificate of title and have had since 2012
The outstanding amount is $3300, yet the yearly figure for tax on this is nearer $750
On the tax collectors site, they are shown as being the owners.

To me a layman, they own it.

 

[stephen4836]

so what is the underlying cause of the auction?

Its a tax deed auction for none payment of the property taxes.
There is no other cause behind it.

 

[stephen4836]

Other questions now come to mind.
If they own it, why not just sell and clear the dues and have a profit. Or is that too simplistic?

 

[justalayman]

Its a tax deed auction for none payment of the property taxes.
There is no other cause behind it.

so the association has not paid the property taxes due and the state is selling it due to delinquent taxes? Wow. I think I would wonder about an association that is about to lose a bunch of money on that matter. It seems a bit derelict since the association's money is the member's of the association actually.

Other questions now come to mind.
If they own it, why not just sell and clear the dues and have a profit. Or is that too simplistic?

don't know. Maybe the load debt exceeds the equity and they would have to pay money to sell it.

but anyway, it appears they did not take title through foreclosure so the assessment lien lives through the foreclosure but you would have action against the association for the assessment incurred during their ownership.

 

[stephen4836]

don't know. Maybe the load debt exceeds the equity and they would have to pay money to sell it.

but anyway, it appears they did not take title through foreclosure so the assessment lien lives through the foreclosure but you would have action against the association for the assessment incurred during their ownership.

I would have thought that since their own debt is maybe $6000 (according to the manager) and the County want $3300 then selling would make sense as it will easily make $45-$50K

I think a revisit to tactfully ask is in order.
Thank you for the help.