Third, it means that the lien against each unit will be in the proportionate amount that the owner is liable for common expenses.And, last, it means that each owner has options to discharge the lien from his/her condominium unit- the owner can pay his/her proportionate share to discharge the lien or the owner can transfer the lien to a bond or other security.
718.121(3) maintains: “If a lien against two or more condominium parcels becomes effective, each owner may relieve his or her condominium parcel of the lien by exercising any of the rights of a property owner under Chapter 713 [Florida’s Lien Law], or by payment of the proportionate amount attributable to his or her condominium parcel.Upon payment, the lienor shall release the lien of record for that condominium parcel.”Now, what does this mean?A unit owner’s percentage interest in the common elements is set forth in the declaration, and the proportional obligation to pay for common expenses cannot be changed without the unit owner’s prior consent. An owner’s obligation to the association and to the other unit owners in the condominium includes the duty to timely pay for assessments to repair, replace and maintain the common elements. Assessment rights have been held to be property rights entitled to constitutional due process protection. But changes to Florida legislation in that year prohibited associations from imposing liens to collect a fine. The condominium lien must state the description of the encumbered parcel, the amount due, the due dates or date and it must be signed by an officer or authorized agent of the association. which exempts homestead property from liens “except for the payment of…The community depends on assessments being timely paid to provide services and improvements to the community. There may be additional requirements for filing a lien found in the declaration of the condominium or the bylaws. obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty.” The second reason is that declarations of condominium and covenants are recorded before an owner takes title. This four-part blog will discuss the condominium association’s right to lien, perfecting the condominium association lien, and collection practices for condominium associations.
A condominium association’s governing documents in conjunction with Section 718.116, Florida Statutes, are the genesis of the condominium association’s authority to impose and perfect assessment liens against individually owned units within the community.
Condominium associations hire contractors for capital improvements and repair / restoration work to common elements (painting, balcony/concrete/stucco restoration or repairs, etc.).
When a condominium association hires a contractor to provide labor, services, or materials to the condominium, it needs to understand that nonpayment can lead to the contractor liening–recording a construction lien–the condominium units in the condominium. 718.121(2) maintains: “Labor performed on or materials furnished to the common elements are not the basis for a lien on the common elements, but if authorized by the association, the labor or materials are deemed to be performed or furnished with the express consent of each unit owner and may be the basis for the filing of a lien against all condominium parcels in the proportions for which the owners are liable for common expenses.”Furthermore, s.
In many cases the association paid the contractor, but the contractor did not pay for the materials or subcontractor work.
Typically the association would enter into a contract to replace the roofs in a community – even in townhouse communities where some buildings have 4 townhomes and others have 6 townhomes connected to each other.
Part II of this blog will discuss the condominium association’s process and procedure for perfecting assessment liens.