With so many mortgages having been sold off by their original lenders to other lenders during the foreclosure crisis, a ruling last week by the Fifth District Court of Appeal provides clarification as to whether subsequent assignees of the original first mortgage are entitled to the “safe harbor” limitation for past due assessments. Read […]
How to Find and Contract the Right Elevator Service Company
Requesting maintenance proposals from an elevator service company can be a daunting task, because so little is known about elevators in general to the riding public. What is important is that you consider the value of the service in reference to your budget. Various types of coverage are available in the market, so you want […]
Don’t Get Scrooged By Your Neighbors During the Holidays
Holidays are time for out of town visitors, lots of parties with family and friends, and the inevitable traffic that all of the festivities bring with them. Unfortunately, not all neighbors and communities welcome the season and all that it brings with open arms. Typical complaints that many boards deal with during the holiday season […]
Failure to Check DMV Records Rendered Search for Defendant Inadequate (FL) – HOA Foreclosure
In this Home Owners Association (HOA) lien foreclosure case, the Plaintiff was unable to locate the Defendant for service. HOA’s attorney filed an affidavit for service by publication, alleging: Read more……….
Condo Associations Must Ensure That Accepting Partial Payments from Delinquent Unit Owners Won’t be Considered Payment in Full
Condominium association budgets suffer significantly when unit owners become delinquent in paying assessments. Moreover, the burden for those unpaid assessments falls on the responsible unit owners who must make up the shortfall in the next yearly budget, which often results in higher assessments across the board. For this reason it is important that associations have […]
Unlicensed Contracting in Florida: Beware of Arbitrating This Issue
The Florida Statutes provide for licensing of certain contractors performing work in this state. If a contractor does not have the requisite licensing, that contractor will not be able to enforce its contract or lien rights. See Florida Statute Section 489.128. This is a dagger to any person seeking to enforce such an illegal contact. […]
Know Your Association’s Rules before Hanging the Mistletoe
Tis the season to be jolly! Or is it? The time of year is near where holiday songs are being sung, and lights and other decorations are being hung. However, before you start decking the halls – you may want to check your association’s rules for spreading the holiday cheer. Not all communities are keen […]
“Let’s Make a Deal”: Dangers of Condominium and Homeowner Associations Accepting Partial Payments for Delinquent Assessments
Since the real estate meltdown which began in 2006, many condominium and homeowner associations have struggled with a significant increase in delinquent assessments. Any money received by an association from a delinquent owner helps, and many associations were willing to work out payment plans with such owners. Read more………..
Make It Green: What should HOAs know before making landscape improvements
Around this time of the year, many homeowner associations (HOAs) dream of lovely events called a general membership meeting. As part of this process, HOA committees want to know when is the right time to invest in landscape improvements. Read more……..
Multiculturalism and your Community Association
Many communities around the country have foreign members who are not proficient English speakers. Others have members who are fluent in English but would prefer to converse in their native tongue. I have attended Board and Membership meetings in Florida where residents (and some directors) spoke Spanish, French, Creole, Portuguese, Chinese, Greek, Italian and Russian. […]
“Payment in Full” – Be Careful- It May Be! (FL)
Negotiating a check which indicates “payment in full,” may estop the Association from collecting any more funds from that owner, regardless if they legally owe more. Recently, a Florida Appellate Court ruled that an Association’s cashing of a check which included a restrictive endorsement (e.g., paid in full) is considered the full accord and satisfaction […]
Your Building’s Anatomy: Systems That Keep Your Building Functioning
From the outside, the structure of a condo or co-op building may appear to be monolithic; just one big piece of brick and steel, punctuated with some glass here and there. That’s an oversimplification, however. A multifamily building is perhaps more like a human body, with a multitude of organs and moving parts working together […]
Plumbing the Depths: Pipes, Drains and Your HOA’s Water Supply
Of all the modern conveniences we take for granted, perhaps none is as profoundly basic —and indispensable—as indoor plumbing. Carrying fresh water into our homes and taking waste water away, the pipes in our condo or co-op buildings are the fine line that separates us from our not-too-distant (also very aromatic and very unsanitary) urban […]
The Art of Picking Professionals: To Choose or Not to Choose
Running the day-to-day business of a condo development or an HOA of any size—be it a sprawling, multi-building community, or a single self-contained building—requires not just a functional board but a team of competent outside professionals. These professionals keep things running smoothly and efficiently for residents and boards—from the legal counsel who advises board members […]
Eyes in the Sky
Drones have been the topic of conversation for the past several years sparking privacy concerns amongst residential communities. In the state of Florida, Governor Rick Scott signed a bill that limits law enforcement’s use of drone aircraft; however, that bill does not pertain to or restrict the commercial and private use of drones. Read […]
Manager’s Wisdom: How to Deal With Angry Residents
This is the fourth post in a series of monthly posts called Manager’s Wisdom – a compilation of ideas and thoughts from Campbell’s best and most experienced managers on specific topics. We asked our managers – What is the key to dealing with angry residents? Read more……..
At budget time, HOAs priorities must be set
This is the season when homeowners and condominium associations prepare annual budgets. An annual budget is a financial planning tool used to prioritize spending and establish how income will be used to perform maintenance and repairs. Here is what associations need to know: Read more………
Associations Must Be Proactive in Foreclosure Process
Before the 2008 real estate meltdown, condominium and homeowners association collection practices seemed to work all right, and write-offs would rarely be too painful to absorb. Since 2008, however, mortgage foreclosures have overwhelmed the court system—and uncontested cases take, on average, more than three years to conclude. Read more………
Get that Sign Out of Here!
Your neighbor’s front yard sign supporting their favorite political candidate may be upsetting. But that alone is not a reason to spray paint over it, yell obscenities every time you see your neighbor leaving to go to work or for the association’s board or directors to demand the sign’s removal. Read more……….
The Call of Duty: The Importance of Fiduciary Responsibility
When electing board members to serve on behalf of your community, you expect them to be on their best behavior and to think of the needs of the building and the people who live there when making their decisions. Regardless of the type of community they serve, board members have a responsibility to govern and […]
Called to Serve: Volunteers for Board Service Often in Short Supply
In a dense urban or sprawling suburban environment, people can still feel isolated. While high-rise residential buildings and suburban subdivisions put many people and families in very close proximity to one another, living side-by-side doesn’t automatically transform a group of people into a community. Sometimes, just the opposite. Read more……..
When Boards Don’t Play by the Rules: Controlling Rogue Board Members
Many if not most boards get along famously. There are boards that have had the same members for decades and run their communities without a hitch. Read more……..
Notice of Contest of Lien for Condominium and HOA Liens
The Condominium Act and the Homeowners’ Association Act create separate thresholds for perfecting a claim of lien for delinquent assessments. Both acts require specific notices to the delinquent owner before the association may record a claim of lien. Even with all of these statutory requirements, a savvy unit owner may be able to knock out […]
Condo Associations Have Statutory Right to Amend Declaration but Can Only Unilaterally Void A Declaration Provision In Certain Circumstances
The declaration of condominium is the instrument by which a condominium is created. Fla. Stat. § 718.103(15). Florida courts have often referred to a declaration of condominium as the condominium’s “constitution” because it “strictly governs the relationships among the condominium unit owners and the condominium association.” Woodside Vill. Condo. Ass’n, Inc. v. Jahren, 806 So.2d […]
Perfecting Assessment Liens
The Condominium Act and the Homeowners’ Association Act create separate thresholds for perfecting a claim of lien for delinquent assessments. Both acts require specific notices to the delinquent owner before the association may record a claim of lien. A claim of lien creates an interest in real property in favor of the association. In many […]
Un-American Condo Termination Law Needs To Be Changed and In Rebuttal: Another Take on Condo Termination Law
Strong property rights are fundamental to our country’s capitalist system of free enterprise. In The Founder’s Constitution in 1787, President John Adams wrote: “Property is a right of mankind as surely as liberty. The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there […]
Recent Arbitration Decision Offers Stern Warning to Associations Making Certain Alterations Without a Membership Vote
An arbitration decision rendered earlier this year by the State of Florida Division of Condominiums involving a dispute over alterations approved by a condominium board without a prior meeting and vote of the unit owners did not surprise our firm’s community association attorneys. We often find ourselves reminding association directors and property managers that the […]
A Condo Association’s Remedies Against Tenants Who Violate the Association’s Declaration, Rules and Regulations
Every condo association finds itself having to deal with tenants who break the association’s rules and regulations. While the association’s governing documents may allow it to take certain actions against those tenants, the Florida Statutes provide for remedies as well. Specifically, Section 718.303, Florida Statutes, defines the obligations of not only unit owners but also […]
Spy Drones: The Next Challenge for Private Communities
There seems to be a proliferation of drone sightings these days and not simply of the military variety. OpenSky Drones LLC, a South Florida company, recently launched with a promise to offer engineers, architects and government agencies a less-risky way to inspect real property. In addition to their uses for the military and the real […]
Condominium Estoppel Certificates
An important aspect of condominium association law is responding to estoppel requests from prospective purchasers or those who take title to a condominium unit by foreclosure. The nature of the request will be the new owner or lender requesting the current outstanding balance due for condominium assessments for the unit. In addition, unit owners for […]
Top 10 Energy Tips: Good Advice Makes Saving Simpler
There’s probably not a condo, HOA or co-op board that doesn’t worry about money at some point or another, which is why staying on top of the latest money-saving opportunities is vital for any building or community to be successful. One of the biggest ways to save money is to cut energy costs, and there […]
New Case of Theft, Fraud by a South Florida Homeowners Association President
Yet another case of theft and fraud inflicted on an association by an HOA president made local South Florida headlines recently. According to news reports, Michelle Changar-Coe, a former homeowners association president, has been arrested and stands accused of embezzling more than $180,000 from her Tamarac community. Police reports indicate that she forged dozens of […]
An Overview of Condominium Defect Litigation in Florida
Due to poor mid-2000’s construction, the area of construction defect litigation is booming. Across the country, numerous owners are grappling with issues of shoddy construction and defective building materials. One of the most common reasons for defect litigation, aside from shoddy construction and poor workforce supervision, results from defective building materials that allow water intrusion. […]
Condo Association’s Demand to Access Units Must Be “Reasonable and Necessary” (FL)
The Florida Condominium Act provides that an association has “the irrevocable right of access to each unit during reasonable hours, when necessary for the maintenance, repair, or replacement of any common elements or of any portion of a unit to be maintained by the association.” Fla. Stat. § 718.111(5)(a). It is tempting for an association […]
THE DIFFERENCES BETWEEN HOMEOWNERS ASSOCIATION AND CONDOMINIUM ASSOCIATION LAW IN FLORIDA – PART III: CONSTRUCTION DEFECTS, STATUTE OF LIMITATIONS AND LIENS
Our first post, the first of a three part series, discussed the differences between homeowners association and condominium association law in Florida pertaining to basic board operations. The second post discussed the differences between homeowners association and condominium association law in Florida pertaining to records inspections and alterations to property. This third, and final, post […]
What is that Word Wednesdays – Pooling
This week’s word is Pooling. The Florida Condominium Act requires an association to include a reserve schedule as part of the annual budget. Reserves must be set aside for painting of the building(s), roof replacement and any other item of association responsibility with a deferred maintenance or replacement cost of $10,000 or more. Read […]
Special Assessments Levied After Recording the Claim of Lien
The Florida Condominium Act provides the process for a condo association to file a foreclosure action for recovering a unit owner’s unpaid assessments. That process includes sending the required statutory notices to unit owners and recording a claim of lien for those unpaid assessments in the county’s official records. Once those pre-suit actions are satisfied […]
Right of Access to Personnel Evaluations, Background Screenings for Community Association Directors, Members
The reader explained that his association conducts an annual evaluation of the association’s property manager that includes an evaluation questionnaire. The evaluation meetings were conducted with the manager by each of the board members, and the evaluation questionnaire forms were collected by the manager who later delivered them to the board president. Read more………
Appellate Ruling Creates New Wrinkle Over Acceptance of Partial Payments That Are Endorsed as Full Payments
As if collections of delinquent accounts were not already difficult enough for condominium associations and HOAs in Florida as the state recovers from the foreclosure crisis, a recent ruling by the Second District Court of Appeal has unfortunately created a new wrinkle that will require community association managers, directors and their legal counsel to pay […]
Debt Collection in Florida: Know the Rules
When it comes to collecting a consumer debt, individuals, businesses and attorneys’ must be familiar with the Florida Consumer Collection Practices Act (“FCCPA”) and its federal counterpart, the Fair Debt Collection Practices Act (“FDCPA”). Like the FDCPA, the FCCPA protects consumers from abusive, harassing, and unfair debt collection practices. Read more………
The Differences Between HOA’s and Condo Assn Law in Florida – Part II: Records Inspections and Alterations to Property
Our previous post, the first of a three part series, discussed the differences between homeowners association and condominium association law in Florida pertaining to basic board operations. This post, the second of a three part series, discussed the differences between homeowners association and condominium association law in Florida pertaining to records inspections and alterations to […]
Purchaser of Property at Tax Sale is Not Liable to Condo Associations & HOAs for Unpaid Assessments (FL)
Florida’s Fourth District Court of Appeal issued an opinion in March of 2014 concerning properties governed by an association that are sold at a tax sale. The court, in A to Z Properties, Inc. v. Fairway Palms II Condo. Ass’n, Inc., held that when property with unpaid association assessments is purchased at a tax sale, […]
Florida Declarations of Condominium: Required Provisions
A condominium is created by recording a declaration in the public records of the county where the land is located, executed and acknowledged with the requirements for a deed. Fla. Stat. § 718.104 (2). All persons who have record title to the interest in the land being submitted to condominium ownership, or their lawfully authorized […]
HOA Management, A Reality Check for Board Members, Management and Homeowners
Having professional management, especially in these times of economic down turn, is more important than ever. With the continuing barrage of laws being passed related to our industry, combined with the statues already on the books, not to do so would be like going into court without an attorney, you can do it, but the […]
Defining and Maintaining Condominium Common Elements in Florida
Any classification of the condominium begins with the declaration of condominium, which sets forth the boundaries of an individual’s unit. In addition, an owner owns an undivided share of the common elements, i.e., “portions of the condominium property not included in the units.” Fla. Stat. § 718.103(8). Read more………
The Impact of Tiara Condominiums: Independent Tort Claims and Jury Trial Waivers Make Their Way to Florida Banking Law
The newest development concerning independent tort claims and causes of action arising from a breach of contract manifests as a result of Tiara Condo. Ass’n., Inc. v. Marsh & McLennan Co. and is exemplified through the holding of Marian Farms, Inc. v. SunTrust Banks, Inc. Marian Farms, Inc. v. SunTrust Banks, Inc., No. 5D12-886, 2014 […]
General Contractors: Make sure you have a Subcontractor Exception to the Your Work Exclusion in your CGL Policy
Do you know what your CGL insurance policy covers? General contractors may expect that their CGL policy covers the cost to repair defective work, or other components of the project that were damaged by defective work. This may be one of the primary reasons a contractor purchases CGL insurance. Read more……..
New appellate case causes uncertainty about accepting partial payments (FL)
Before 2008, association attorneys were understandably concerned about accepting partial payments with a restrictive endorsement (where the owner wrote “payment in full” on the check.) Doing so might bar associations from demanding full payment, where the partial payment was not, in fact, payment in full. This is called “accord and satisfaction.” Read more……..
A Condo Association’s Lien Foreclosure Does Not Extinguish the Outstanding Past-Due Assessments Owed by the Previous Owner
The Florida Legislature, in 2014, amended the section of the Florida Condominium Act concerning liens for unpaid condominium assessments and who shoulders that liability. Specifically, Section 718.116(1)(a) was amended to make clear that a condo association’s temporary ownership of a certain unit does not wipe out the unpaid assessment balance which existed on that unit […]
Identifying Insurance Options: One Size Does Not Fit All!
You can’t underestimate the value of insurance. In a simple analogy, operating a business—or the day-to-day business of a co-op or condo—without adequate insurance coverage is a lot like skydiving without a parachute. Needless to say, it’s a risky proposition. Read more……..