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A foreclosure may result if a homeowner falls behind on payments (“Assessments”) to their homeowner’s association (“HOA”) or their condominium association (“COA”). COA and HOA shall be collectively referred to as the “Association” throughout this article. The right to foreclose by the Association is explicitly agreed to by the homeowner pursuant to the declaration of condominium, bylaw documents and other various documents signed when obtaining approval by an Association pursuant to a purchase and sale of real property. Specifically, when the homeowner purchases a home in a condominium or a planned unit development, they agree to pay monthly or quarterly Assessments and to allow the Association to place a lien over their home if such Assessment payments are not made. The homeowner also agrees (in one way or another) that the lien may contain additional charges, in addition to the amount in arrears for missed payments. These additional charges can add up and are outlined below.

While missed Assessment payments are always indicated in the lien, Florida law authorizes an Association to charge various other fees, in addition to the amount for Assessments unpaid. For instance, late charges may be charged by the Association and added to the total amount of the lien, however, late charges cannot exceed the greater of twenty-five ($25.00) dollars or five (5%) percent of the amount of each past due payment. In other words, if a missed payment is one-hundred ($100.00) dollars, the Association may charge twenty-five ($25.00) dollars per each missed payment (because it is the greater than five (5%) percent of one-hundred ($100.00) dollars). The Association cannot charge any more than twenty-five ($25.00) dollars per missed Assessment – that is their ceiling. Florida law also permits the Association to collect reasonable attorney’s fees and costs associated in connection with litigating and/or foreclosing on the lien. Finally, the Association may charge interest on unpaid Assessments. The interest rate cannot exceed the legal interest rate allowable by law pursuant to usury legislation (which is eighteen (18%) per year per year (Fla. Stat. Ann. § 720.3085(3), § 718.116(3)).

Contact the attorneys of The Ticktin Law Group to assist you with Association lien and/or foreclosure issue and/or any other legal matter you, a friend or a loved one may have. The attorneys of The Ticktin Law Group offer complimentary legal consultations

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