Tuesday, July 9, 2013

HOA Lien For Unpaid Maintenance Survives Condo Association's Foreclosure Sale; 3rd Party Buyer At Subsequent Foreclosure By Existing 1st Mortgagee Finds Itself Stuck Inheriting Said HOA Lien, Despite Association's Interim Ownership

In Miami, Florida, the South Florida Business Journal reports:

  • A Miami circuit judge has upheld his original 2011 ruling that an Aventura condo association lien survives foreclosure and must be paid by the buyer even though the association itself owned the home briefly. In effect, this decision reinforces the idea that buyers are responsible for paying condo association fees attached to foreclosure purchases they make.

    The ruling was hailed by the association’s lawyer, Ben Solomon of the Association Law Group, as helpful for associations trying to shore up their finances in the wake of the recession. Many associations took hits to their budgets as units went vacant due to foreclosures.

    Miami Dade Circuit Judge Ronald Dresnik had ruled in favor of the association at Spiaggia Ocean Condominium two years ago, in a lawsuit filed by a buyer called Aventura Management. According to Solomon, the buyer owes $101,000 to the association.

    But the Third District Court of Appeal sent the case back to Dresnick for more consideration of whether the association was also liable for association fees during the period it owned the condo.

    On May 28, Dresnick reaffirmed his own ruling, adding that the association is also liable for the fees accrued on the unit, but it can choose to pursue collection against the new buyer severally.

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