Blog Elements – Page 4 – Homeowner and Condo Association Law Firm in Florida

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Collection of Assessments

March 12, 2019/in FAQs, News /by martellandozim

Fining Procedures – Converting Fine to Assessment

February 26, 2019/in FAQs, News /by martellandozim

Many of our clients, both condominium and homeowners’ associations alike, often ask about the proper procedures for issuing and collecting a fine. In our previous blog post titled “Fining Procedures – Issuing a Fine” we discussed how both condominiums and homeowners’ associations properly issue a fine. This blog post will focus on converting a fine […]

Collection of Assessments

March 12, 2019/in FAQs, News /by martellandozim

Fining Procedures – Converting Fine to Assessment

February 26, 2019/in FAQs, News /by martellandozim

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Collection of Assessments

March 12, 2019/in FAQs, News /by martellandozim

The collection of assessments is the backbone of all condominium and homeowners’ associations. It doesn’t matter if your association is new or old, small or large, gated or non-gated, full of amenities or not. Each and every association requires money to operate and, for the most part, that money comes from the members timely paying their regular assessments. Each and every association requires money to operate and, for the most part, that money comes from the members timely paying their regular assessments.

Typically, the collection process begins with your management company providing coupons for the regular assessment to all members based on the adopted budget. If an Owner fails to pay an assessment, the following procedural steps are commonly taken:

The Association’s management company sends an initial ten (10) day courtesy notice regarding the Owner’s delinquency. This notice serves as a friendly reminder that the Owner missed a payment.

If payment is not received, the first statutorily required pre-suit demand letter that must be sent is a Notice of Intent to Lien letter (ITL). By law, the ITL gives a condominium Owner thirty (30) days to make full payment before the Association may record a lien against the property. On the other hand, by law, the ITL gives a homeowners’ association Owner forty-five (45) days to make full payment before the Association may record a lien against the property.

If full payment is not received after expiration of the ITL, a lien may be recorded in the public records of the county where the property is located.

Next, the second statutorily required pre-suit demand letter that must be sent is a Notice of Intent to Foreclose letter (ITF). By law, the ITF gives a condominium Owner thirty (30) days to make full payment before the Association may file its lien foreclosure lawsuit. On the other hand, by law, the ITF gives a homeowners’ association Owner forty-five (45) days to make full payment before the Association may file its lien foreclosure lawsuit.

If full payment is not received pursuant to the procedures outlined above, our Firm will order title work in order to reveal any and all encumbrances on the property. All lien holders other than the first mortgage holder must be named as defendants in the Association’s lien foreclosure lawsuit.

Our goal is to reach a resolution with the Owner, however, if that does not occur our Firm will litigate the case and obtain a Judgment scheduling the property for sale. Foreclosure sales are typically set about 45 days from the entry of a Judgment.

Please note that the above procedure summarizes a typical collection action as it moves through the collection process. At any time, an Owner may make payment to satisfy all of the Association’s assessments and withheld legal fees, resulting in a release of the lien or dismissal of the lawsuit. An Owner and the Association may also agree to a monthly payment plan which will abate or pause the process until the debt is paid in full. Further, if a renter resides at the property, the Association has the option of demanding rents through a court receivership to collect all rents during the lawsuit. A knowledgeable and practiced association attorney can help the Association successfully navigate the collection process to ensure that the best collection strategy is being used for the Association and its members.

Our Firm firmly believes in communication. Therefore, we provide free collection strategy meetings to identify appropriate cases for collection and we also offer monthly updates on all files with our office. All of our attorneys’ fees are withheld throughout the collection process. All attorneys’ fees will be documented, added to the delinquent owner’s account and collected from either the delinquent owner or a third party. The incentive is to settle or litigate the case as quickly and efficiently as possible since we do not collect our attorneys’ fees until there is a resolution (remember, no monthly invoices).

If your community needs assistance with the collection of assessments, please do not hesitate to contact Martell & Ozim, P.A.

Fining Procedures – Converting Fine to Assessment

February 26, 2019/in FAQs, News /by martellandozim

As you’ll recall, a condominium association’s fine cannot exceed $1,000.00 and cannot become a lien against a Unit. Thus, a condominium association’s fine cannot be converted into an assessment and placed on the Owner’s account ledger.

Conversely, a homeowner association’s fine can become a lien against the Lot if the fine is at least $1,000.00 in the aggregate and depending on your governing documents the fine may be able to exceed $1,000.00. Because Florida Statutes provide that homeowners’ association fines may be converted to liens, the Association may move forward with such actions so long as the Association properly converts the fine to an assessment. Once the conversion is complete, the Association can add the assessment to the overall account ledger for the Owner. Therefore, if a fine is unpaid, the Board should hold a meeting to levy an assessment against the Owner for the amount of the fine.

It is important to emphasize that you may only convert a fine to an assessment if it equals or, if your governing documents permit, exceeds $1,000.00 per violation. Please note that you may not combine two (2) separate violations to reach the $1,000.00 minimum requirement to lien for the fine.

Pursuant to Section 720.303(2)(c)2, Florida Statutes, the Board of Directors must provide the fined homeowner at least fourteen (14) days advanced written notice of the Board Meeting at which the homeowner’s fine will be converted into an assessment. The written notice must also include a statement informing the homeowner that the Board will consider assessing the homeowner for the fine at the Board Meeting.

Always confer with your legal counsel to make sure your following all of the appropriate steps contained in your Governing Documents and Florida Statutes. Our Firm recommends that both condominium and homeowners’ associations have a written fining policy in place, thoroughly outlining the fining process, including issuing a fine and subsequently converting the fine into an assessment.

Please stay tuned for more condominium and homeowners’ associations content. As always, please do not hesitate to contact our Firm for any of your community association needs.

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

Collection of Assessments

Fining Procedures – Converting Fine to Assessment

Collection of Assessments

Fining Procedures – Converting Fine to Assessment

Full Sized Blog Element (Big Preview Pic)

Collection of Assessments

Fining Procedures – Converting Fine to Assessment

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