Legal Question in Real Estate Law in Florida
We live in a condo in Florida. Recently one of the owners in our condominium declared bankruptcy. He forfeited all his tangible property but was allowed to keep his condominium as he is a Florida resident and it was his primary residence. He no longer pays his monthly condominium fees claiming that they were excused in the bankruptcy. What recourse does our condo association have, if any, to begin collecting monthly fees from this individual? This places a burden on the rest of us occupants. We have had to absorb his share of the assoc. dues.
2 Answers from Attorneys
You will need to check the bankruptcy records to determine exactly what debts were excused, and what debts were not. Even if past due maint fees were excused, that does not give him the ability to go on forever without paying the maint fees.
Under bankruptcy law, his responsibility to pay the past due maintenance fees as of the date he filed bankruptcy, were wiped out. However, he is legally responsible to pay all monthly maintenance fees incurred after the date he filed bankruptcy.
Further, the fees due as of the date he filed bankruptcy were not wiped out entirely. They remain as a lien against the property. The bankruptcy just wiped out his obligation to pay them. This means that if he sells the property, then the new owner will be obligated to pay all past due maintenance fees. As a practical matter, this means that those fees will have to be paid by someone (maybe the current owner) at the closing.
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