Fla. App. Court Holds Safe Harbor for Unpaid HOA/COA Assessments Doesn’t Require Mortgagee to Own Note, Mortgage

The District Court of Appeal of Florida, Second District, recently held that a mortgagee is entitled to the safe harbor limiting liability for unpaid condominium assessments under section 718.116 of the Florida Condominium Act, even though the mortgagee holds, but does not own, the note and mortgage.   A mortgagee filed a foreclosure action, naming the condominium association (COA) as a party defendant. The mortgagee alleged in the complaint that it was “the holder of the note and mortgage and the servicer for the owner of the note and mortgage, acting on behalf of and with the authority of the owner.”    Read the article……………