BiggerPockets

Just an update, sure enough the homeowners association is threatening to foreclose on the property if the previous owners arrears aren't paid. My attorney is hot on the case.

May I just state once again emphaticcally-----

I HATE CONDOS.

HOA's and special assessments. You should really do your homework before you buy at foreclosure/tax sales in Tx and elsewhere, imo. Rich

Originally posted by Jean Norton

I know I must perform a quiet action to get clear title so here's where I need some clarificatification:

I am not familiar with Florida law but I never do a quiet title action.

1. Why the other lien holders didn't buy the tax lien is are real puzzler to me.

It is not very common in tax sales for lien holders to bid. With all the thousands of tax sales across the country it just isn't practical for lien holders to go to every one. Often they aren't even notified. In a tax lien foreclosure they are notified and have the right to redeem.They rely on the right of redemption after the sale. (This applies more to tax liens, I am not as familiar with tax deeds.)

Can anyone with experience . . . in Florida

. . . There's a precedant case, "Sugarmill Woods Oaks Village Association, Inc. v. Andrew M. Wires" where the trial court and the appellant court agreed that the liens from an HOA do not convey to a new owner via tax deed sales. I think the law is on my side.

I have no experience in Florida but I suspect you are right the law is on your side. I am surprised there is a precedent case because I suspect the law is very clear that all liens are wiped out.

Good luck and I am interested in how this turns out.

I have been dealing with this issue as well. Please note that the Sugarmill case does state that the lien is extinguished, which would be correct, however it does not address the extinguishment of back assessments owed. Take a look at Statute 718.120(2) and the Docs of the Association. My guess is that your Docs state that a Unit owner is jointly and severally liable with the previous one for all of the balance of the account, including court costs and attorney fees. So my understanding is that while the Association's lien is indeed wiped out, they should be able to start the collection process again, and look to lien the property for the total amount due on the account, and then foreclose on it if it is not paid in full.

I am interested to hear what your outcome is, but if I had to pick a side, assuming the Docs have proper language, I would probably take the Association side.

I am interested to hear what your outcome is, but if I had to pick a side, assuming the Docs have proper language, I would probably take the Association side.

I'd like to know exactly what is owed as well. My understanding is the HOA/COA will be able to collect for either 12 months/6 months of back dues, any special assessments in that time frame, and all late, and attorney's fee's along with interest up to the date of transfer of title or sale.

The ability for the association to levy a special assessment on the new property owner for the remaining amount previously owed is not allowed after foreclosure. That being said Damien sounds logical in the HOA/COA's ability to review the finances and issue another special assessment to cover current expenses.

Just a quick update - scheduled for a hearing in Feb 2011 - I can't believe I'm the first one to appear before a judge on the conflicting statutes in the Florida state law.

I've had some reach out to me privately as they are in this same situation. If anyone has solid and recent information on this topic (please no more "due diligence" remarks) of conflict in the state laws regarding tax deeds and COA's, please let me know.

Thanks!

Any update?

We have made significant progress to a positive resolution. I've started receiving checks from the income earned on the unit and the attorneys are negotiating what I am owed and what my attorney is owed.

This will be settled soon!