We're getting conflicting info when trying to look into this issue.
If we buy a property through a tax deed sale (not lien, but deed) are we, as the new owners, responsible for unpaid HOA or condo association dues?
We're specifically working in the Orange, Lake, Osceola, and Seminole county areas of Florida.
Unpaid HOA fees are common in my local area. HOA's in our local area will put something similar to a mechanics lien on the property. So typically the fees are like back taxes, have to be paid upon transfer and since its a tax sale, you're the new owner I'd say you'd be responsible for paying the fees for now. Then I'd say if and when the owner redeems the property within the states specified time period, they'd be responsible for making you whole on the fees with interest on the amount paid.
I don't have direct experience with tax sales and the unpaid fees over and above the tax liens though. Good luck on your purchase!
Yes, there's much confusion out there on this one. No, in a tax deed auction they do not survive, even though the HOA attorneys will try to tell you they do. In a mortgage foreclosure, yes they survive.
In FL any HOA dues prior to the tax deed sale do not survive, you are responsible from the date of purchase forward. Some HOA attorneys try to contest this but there is case law. If you end up needing an attorney Hicks Knight (formerly Henry Hicks PA, but unfortunately he passed away last year) in Tampa has a lot of experience in this area.
Thanks for the replies everyone. Sounds like maybe the HOA attorneys are responsible for some of that conflicting information.
Thanks for the reference Patrick L. and would love to hear from Erin Wysocki as well.
So I am not familiar with the tax deed sales. I have bid, but it was never worth it to me. I assume they are similar to the foreclosure auctions when it comes to past due HOAs. I could be wrong, but this is what I know. YES!, you are absolutely responsible for the past due HOAs. That is why it's very important to do your due diligence. Most HOAs will put a lien on the property in official records. I know there is case law where you are only liable for a max amount if you hire an attorney for the case, I can't remember what my attorney told me but I can find out if anyone would like to know. Your also able to negotiate with most HOAs. The latest property that I picked up had $8500 worth of back HOAs (not recorded btw), I was able to negotiate down to $2800. But I have also been burned where I picked up an HOA lien property and they were able to bill me for back HOA dues when I didn't even own the property.
@Erin Wysocki Sorry, but you're mistaken on two points. Tax deed auctions are different than mortgage foreclosures. Also, in regard to mortgage foreclosures, there is No cap on past dues that become your responsibility. That cap only applies to the foreclosing bank, if They get it back at the auction, and if they named/served theHOA as a defendant.
@Wayne Brooks Like I said I am not familiar with tax deed sales. I am familiar with foreclosure sales. I'm not exactly sure what you are trying to say about the cap? I'm not saying that your not responsible for all of the HOAs due, I'm just saying that I have been able to negotiate a lower price,
@Erin Wysocki Yes, some will negotiate. My reference to there being no cap was in response to your statement about "case law where you are only liable for a maximum amount if you hire an attorney".....no law to that effect.
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