Battle Against Rent Skimming Florida Condo Investors Intensifies As Blanket Receivership Court Orders Become Broader In Scope

The South Florida Sun Sentinel reports on how the fight being waged by condo associations across South Florida and the state by seeking court-ordered, blanket receiverships against deadbeat investor/unit owners continues to heat up:

• The first blanket receivership order was petitioned by the Association Law Group and signed in March by a Miami-Dade County judge on the behalf of the Oaks at Miami Gardens. Since then dozens have been signed or are pending in county courts throughout South Florida, as well as Orange and Seminole counties, attorneys say.

• And as the practice spreads throughout the state, the blanket receivership orders also seem to broaden in scope. Last month, [professional receiver Seth] Heller was appointed as the receiver in Seminole County for an Orlando condo association, the first blanket receivership order outside South Florida. The order provides receivers like Heller with more authority compared to previous receivership orders granted in South Florida, including the authority to collect money from rent-paying tenants as well as those who don't pay rent but live in a unit owned by an investor in foreclosure (blanket receiverships are not used for owner-occupied units).

• Whether a relative or friend of the investor, a non-rent paying tenant could be ordered by Heller to pay fair market rent to be turned over to the association. The Orlando order also now allows receivers to collect rent the moment an investor is delinquent, no 30 or 60 day late notices from the association necessary. And the order specifically reminds tenants that they could face jail and contempt of court charges for not complying with a receiver's order and not appearing in court to explain why.

For the story, see Condo associations turn to receivers to fight deadbeat investors (New weapon in the fight against delinquent owners).