Full question:
We have bought a condo foreclosed on by the Community Association (Hammocks community). There is no outstanding mortgage or bank involved. However, there are significant outstanding HOA fees. Are we legally repsonible for paying those?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Florida
Answer:
The answer will depend in part on the terms in the contract of sale. Typically, a foreclosed property is sold as is, therefore, the purchaser takes the property subject to any liens recorded on the property. If the fees have not been turned into a judgment, the previous owner may remain liable for fees incurred prior to the sale date. We suggest you read the Condo Declaration on personally liability of a Unit owner for unpaid assessments. Typically, the Condo Declaration provides that an owner’s liability for assessments is personal and will continue in effect notwithstanding any foreclosure. Check the title insurance policy. If it is not an exception to title on Schedule B of the policy, then file a claim with the title insurance company.
Florida statutes state in relevant part as follows:
"(2)(a) A parcel owner, regardless of how his or her title to property has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments that come due while he or she is the parcel owner. The parcel owner's liability for assessments may not be avoided by waiver or suspension of the use or enjoyment of any common area or by abandonment of the parcel upon which the assessments are made.
(b) A parcel owner is jointly and severally liable with the previous parcel 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 present parcel owner may have to recover any amounts paid by the present owner from the previous owner. "
Please see the following statutes:
http://www.flsenate.gov/statutes/index.cfm?App_mode=Display_Statute&URL=Ch0720/ch0720.htm
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
