YOU MAY BE CHEATING YOURSELF OUT OF MONEY
Eric Glazer, Esq.
Published April 16, 2018
All of you know how terrible the condo and HOA
statutes are in terms of the association’s ability to collect
unpaid assessments when a bank forecloses on a unit or home. If
the bank gets back a unit in foreclosure, they owe the
association the lesser of 1% of the mortgage or 1 year of
The saving grace is that every once in a while, the
association will get lucky, and a third party will purchase the
unit or home at the bank’s foreclosure sale. When that happens,
the association is entitled to get all of the unpaid assessments
from the new 3rd party purchaser. Unless………….. the
governing documents of your community specifically state that a
3rd party purchaser owes nothing when they purchase a
unit at a foreclosure sale. Unfortunately for associations,
this is not uncommon.
In Pudlit 2 Joint Venture, LLP v. Westwood Gardens
Homeowners Ass'n, Inc. 169 So.3d (4th DCA, 2015) the
court held that the statute that would have made a parcel owner
within a homeowners' association jointly and severally liable
with a previous parcel owner for unpaid assessments did not
supersede a provision of homeowners' association's declaration,
providing that personal obligations for delinquent assessments
would not pass to successors in title.
In Gardens of Kendall Condominium v. Valores Agregados, LLC, 187
So.3d 252 (3rd DCA, 2016) this same holding was
applied to Florida condominiums.
So, you now have a homework assignment. Check your
governing documents to make sure you don’t have language in them
that limits the liability of 3rd party purchasers at
foreclosure sales. If you do, take steps to amend the documents
HOA & Condo Blog
Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.