Florida Statewide Rule
Florida HOA Assessments, Liens & Foreclosure
Key Facts
- Governing law
- Fla. Stat. § 720.3085
- Default interest
- 18% simple per year if declaration is silent
- Late fee cap
- Greater of $25 or 5% of each installment
- Pre-lien notice
- 45 days, certified + first-class mail
- Foreclosure
- Allowed like a mortgage; second 45-day notice required
Summary
Under Fla. Stat. § 720.3085, unpaid assessments become a lien on a parcel, and the homeowners' association may foreclose like a mortgage. Before recording the lien the association must send a 45-day written notice by certified and first-class mail, and a second 45-day notice is required before foreclosure can begin.
F.S. 720.3085 720.3085 Payment for assessments; lien claims. — (1) When authorized by the governing documents, the association has a lien on each parcel to secure the payment of assessments and other amounts provided for by this section. Except as otherwise set forth in this section, the lien is effective from and shall relate back to the date on which the original declaration of the community was recorded. However, as to first mortgages of record, the lien is effective from and after recording of a claim of lien in the public records of the county in which the parcel is located. This subsection does not bestow upon any lien, mortgage, or certified judgment of record on July 1, 2008, including the lien for unpaid assessments created in this section, a priority that, by law, the lien, mortgage, or judgment did not have before July 1, 2008. (a) To be valid, a claim of lien must state the description of the parcel, the name of the record owner, the name and address of the association, the assessment amount due, and the due date. The claim of lien secures all unpaid assessments that are due and that may accrue subsequent to the recording of the claim of lien and before entry of a certificate of title, as well as interest, late charges, and reasonable costs and attorney fees incurred by the association incident to the collection process. The person making payment is entitled to a satisfaction of the lien upon payment in full.
Full Breakdown
Section 720.3085 makes assessments a lien securing payment 'from the due date.' Past-due assessments accrue interest at the rate stated in the declaration or, if none, 18 percent simple interest per year. The association may charge an administrative late fee not exceeding the greater of $25 or 5 percent of each past-due installment. Before recording a claim of lien the association must give the owner 45 days' written notice by registered or certified mail (return receipt) and first-class mail; a separate 45-day notice of intent to foreclose is required before suit. Payments are applied first to interest, then late fees, then collection costs and attorney fees, and last to the assessment. A delinquent owner may file a 'qualifying offer' that stays foreclosure up to 60 days.
Violations & Penalties
No criminal penalty. A delinquent owner owes the assessment plus 18% interest (or the declaration's rate), late fees up to $25 or 5% per installment, collection costs, and attorney fees, and ultimately faces judicial foreclosure of the lien and loss of the home after the two required 45-day notices.
Frequently Asked Questions
Can a Florida HOA foreclose on my home for unpaid dues?
How much interest and late fees can a Florida HOA charge?
What is a qualifying offer in a Florida HOA foreclosure?
Sources
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