Bill Text: FL S1066 | 2015 | Regular Session | Introduced

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Bill Title: Residential Properties

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-05-01 - Died in Banking and Insurance [S1066 Detail]

Download: Florida-2015-S1066-Introduced.html

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       Florida Senate - 2015                                    SB 1066
       
       
        
       By Senator Bean
       
       
       
       
       
       4-00740A-15                                           20151066__
    1                        A bill to be entitled                      
    2         An act relating to residential properties; amending
    3         ss. 718.116 and 720.3085, F.S.; revising the
    4         limitations on the liability of a first mortgagee or
    5         its successor or assignee who acquires title to a unit
    6         or parcel by foreclosure or by deed in lieu of
    7         foreclosure; requiring a first mortgagee or its
    8         successor or assignee to be liable for all assessments
    9         and related costs and fees which accrue from the date
   10         of the judgment of foreclosure or deed in lieu of
   11         foreclosure; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Paragraph (b) of subsection (1) of section
   16  718.116, Florida Statutes, is amended to read:
   17         718.116 Assessments; liability; lien and priority;
   18  interest; collection.—
   19         (1)
   20         (b)1. The liability of a first mortgagee or its successor
   21  or assignee assignees who acquires acquire title to a unit by
   22  foreclosure or by deed in lieu of foreclosure for the unpaid
   23  assessments that became due before the mortgagee’s acquisition
   24  of title is limited to the greater lesser of:
   25         a. The unit’s unpaid common expenses and regular periodic
   26  assessments which accrued or came due during the 12 months
   27  immediately preceding the judgment of foreclosure or deed in
   28  lieu of foreclosure acquisition of title and for which payment
   29  in full has not been received by the association; or
   30         b. One percent of the original mortgage debt. The
   31  provisions of This paragraph applies apply only if the first
   32  mortgagee joined the association as a defendant in the
   33  foreclosure action. Joinder of the association is not required
   34  if, on the date the complaint is filed, the association was
   35  dissolved or did not maintain an office or agent for service of
   36  process at a location which was known to or reasonably
   37  discoverable by the mortgagee.
   38         2. A first mortgagee or its successor or assignee shall be
   39  liable for all assessments and related costs and fees which
   40  accrue from the date of the judgment of foreclosure or deed in
   41  lieu of foreclosure.
   42         3. An association, or its successor or assignee, that
   43  acquires title to a unit through the foreclosure of its lien for
   44  assessments is not liable for any unpaid assessments, late fees,
   45  interest, or reasonable attorney attorney’s fees and costs that
   46  came due before the association’s acquisition of title in favor
   47  of any other association, as defined in s. 718.103(2) or s.
   48  720.301(9), which holds a superior lien interest on the unit.
   49  This subparagraph is intended to clarify existing law.
   50         Section 2. Paragraph (c) of subsection (2) of section
   51  720.3085, Florida Statutes, is amended, and paragraph (e) is
   52  added to that subsection, to read:
   53         720.3085 Payment for assessments; lien claims.—
   54         (2)
   55         (c) Notwithstanding anything to the contrary contained in
   56  this section, the liability of a first mortgagee, or its
   57  successor or assignee as a subsequent holder of the first
   58  mortgage who acquires title to a parcel by foreclosure or by
   59  deed in lieu of foreclosure for the unpaid assessments that
   60  became due before the mortgagee’s acquisition of title, shall be
   61  the greater lesser of:
   62         1. The parcel’s unpaid common expenses and regular periodic
   63  or special assessments that accrued or came due during the 12
   64  months immediately preceding the judgment of foreclosure or deed
   65  in lieu of foreclosure acquisition of title and for which
   66  payment in full has not been received by the association; or
   67         2. One percent of the original mortgage debt.
   68  
   69  The limitations on first mortgagee liability provided by this
   70  paragraph apply only if the first mortgagee filed suit against
   71  the parcel owner and initially joined the association as a
   72  defendant in the mortgagee foreclosure action. Joinder of the
   73  association is not required if, on the date the complaint is
   74  filed, the association was dissolved or did not maintain an
   75  office or agent for service of process at a location that was
   76  known to or reasonably discoverable by the mortgagee.
   77         (e) A first mortgagee or its successor or assignee shall be
   78  liable for all assessments and related costs and fees which
   79  accrue from the date of the judgment of foreclosure or deed in
   80  lieu of foreclosure until title is transferred to a third-party
   81  purchaser.
   82         Section 3. This act shall take effect July 1, 2015.