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This article is a brief case law and legislative update of what has happened in this arena since 2011.
If a contractor is not paid by the association and elects to lien and move forward with a lien foreclosure lawsuit, the contractor is not required to sue each individual owner.
Condominium associations hire contractors for capital improvements and repair / restoration work to common elements (painting, balcony/concrete/stucco restoration or repairs, etc.).
The issue was addressed in a recent United States federal court opinion where the court held that a first mortgagee was not liable to either a condominium association or HOA for interest, late fees, collection costs and attorneys' fees, as these fees were not considered "common expenses" or "regular periodic assessments." See : Foreclosing lenders should carefully review estoppel certificates generated by condominium associations and HOAs to ensure that charges set forth in the certificates include applicable Safe Harbor limits and that the calculation of delinquent charges includes only allowable common expenses and maintenance assessments.3d DCA 2005) that it cannot re-write Florida Statutes, and that the safe harbor applies only to first mortgagees or a subsequent holder of the first mortgage.
Associations may consider adding language such that "the provisions of the Condominium Act [or Homeowners' Association Act], as presently existing, or as it may be amended from time to time, are incorporated in the Declaration." In a footnote in the : Are purchasers from foreclosing associations liable for delinquent assessments of a prior owner after the association forecloses its lien for unpaid assessments and takes title?
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