HOA and condo association foreclosure in Florida

HOA and condo collection rules in Florida, step by step

• Which law covers your community

  Depends on the type of community

  Chapter 720 covers homeowners associations in planned communities, and chapter 718 covers condominium associations. Cooperatives have their own chapter, 719. The steps below are from chapters 720 and 718; your declaration and bylaws add their own rules.

  Fla. Stat. §§ 718.116, 720.3085

• Notice of late assessment before attorney fees

  30 days to pay before collection goes further

  The association cannot charge you attorney fees on a past due assessment until it mails a Notice of Late Assessment showing what you owe and giving you 30 days to pay without those fees. Late fees are capped at the greater of $25 or 5% of the late installment. In an HOA, interest is 18% a year simple if the documents do not set a rate, and compound interest is not allowed.

  Fla. Stat. §§ 720.3085(3), 718.121(5), 718.116(3)

• Notice of intent to record a claim of lien

  45 days before a lien can be recorded

  The association must send a Notice of Intent to Record a Claim of Lien by certified or registered mail and by first-class mail, and give you 45 days to pay. Against a first mortgage, the lien counts only from the day the claim of lien is recorded. You can record a Notice of Contest of Lien, which gives the association 90 days to sue or lose the lien.

  Fla. Stat. §§ 720.3085(1), (4); 718.121(6); 718.116(5)

• Notice of intent to foreclose, then a court case

  45 days after the notice, at the earliest

  After the lien is recorded, the association must give you a 45-day Delinquent Assessment notice before it can foreclose. The foreclosure is a lawsuit, handled the same way as a mortgage foreclosure, and the association can also sue for a money judgment. If the home is rented, the court can appoint a receiver to collect the rent during the case.

  Fla. Stat. §§ 720.3085(1)(c), (1)(e), (5); 718.116(6)

• A one-time qualifying offer for HOA cases

  After you are served, before judgment

  In an HOA foreclosure under chapter 720, you can file one notarized qualifying offer to pay everything owed by a set date. It pauses the case for up to 60 days, and the association cannot add legal fees during the pause. If you miss the payment, the case resumes.

  Fla. Stat. § 720.3085(6), (7)

• Fines are limited

  Before any fine is imposed

  A fine needs at least 14 days' written notice and a chance for a hearing before a committee of owners who are not on the board. An HOA fine under $1,000 cannot become a lien on your home, and a condo fine cannot become a lien at all. Unless the documents say otherwise, an HOA fine is capped at $100 per violation and $1,000 total for a continuing violation.

  Fla. Stat. §§ 720.305(2), 718.303(3)

• What a mortgage foreclosure means for HOA dues

  When the lender takes title

  If the first mortgage lender takes the home by foreclosure or deed in lieu and joined the association in its case, the lender owes only the lesser of 12 months of unpaid assessments or 1% of the original mortgage. Any other new owner is jointly liable with you for past due assessments, and you can still be sued for what you owed.

  Fla. Stat. §§ 720.3085(2), 718.116(1)

Common questions in Florida