Legal Question in Real Estate Law in Florida

Re: real estate foreclosure

Past due assessments:

Yes - but only under certain conditions.

Only a limited portion of past due assessments are collectable, pursuant to Florida Statutes Ch. 720.3085 --

(1) if the bank purchases the property at foreclosure sale or acquires title by deed in lieu of foreclosure AND

(2) if the bank is a first mortgagee or ir its successor or assignee as a subsequent holder of the first mortgage

In that event, the bank (if first mortgagee) is responsible for paying the lesser of 1% of the mortgage debt or the assessments that came due during the 12 months prior to transfer of title.

Assessments after the transfer of title:

ALSO, whoever purchases at a foreclosure sale (including a first mortgagee) is responsible for paying assessments from the time the property is transfered (Certificate of Title).

Liability for assessments under Florida Ch. 720 the source of much controversy, as to who is or is not protected by the "safe harbor" provision of the statute. Additionally, what happens to the remaining liability if the 'bank' takes title and pays only a portion.

It is important to seek competent counsel on these issues, because of the many legal issues involved.