Governor Crist Signs Distressed Condominium Relief Act
Bulk condo purchasers will not be responsible for the original developer’s liabilities.
Palm Coast, FL – June 7, 2010 – Florida Governor Charlie Crist signed into law last week the Distressed Condominium Relief Act. The act takes effect July 1, 2010. It is designed to facilitate sales of the large inventory of distressed condominiums in the state, especially South Florida.
The act has something for bulk buyers and condominium associations as well as current unit owners. Bulk condo buyers, defined as those purchasing more than seven units in the same condo project, will not have to assume liabilities of the original developer. Analysts believe this provision will tend to increase the prices paid for distressed condos since the bulk buyer won’t have to set aside reserves for potential litigation.
Under the current law, foreclosing lenders are liable for a maximum of only six months’ delinquent association fees when they take possession. The new law raises that liability to twelve months. Associations will also be able collect rent revenue directly from their tenants where absentee owners are not paying their association fees.
For current owners shouldering the burden of keeping their condo association afloat, the added leverage for collections will be welcome, as will be the slightly higher prices paid for empty condos. Many condominium sellers suffer a dearth of buyers because of current lending guidelines. Those projects with over 15% of the units in default and not paying assessments do not qualify for loans backed by Fannie Mae.
Rent to dues?
Logistically speaking, how will the association collect rent from a tenant? I can imagine being a tenant and someone knocking on my door and saying "you now need to pay me your rent instead of the guy you have been paying". It almost seems like a scene from a mob movie.
Dues (collected rent) to owners pocket
Rent to dues?
Logistically speaking, how will the association collect rent from a tenant? I can imagine being a tenant and someone knocking on my door and saying "you now need to pay me your rent instead of the guy you have been paying". It almost seems like a scene from a mob movie.
Logistically speaking the owners collect and pocket the rent while the rest of the association is burdened DOWN with the finances to keep the association afloat. In my association HERITAGE SQUARE CONDO the dues include all external property upkeep, roof, lawn care, trash pick up, water bills, lighting for safety, pool care and more. The tenants enjoy all these while they bring untold number of friends and family to spent permanent overnights. use the water and more.
It almost seem like a scene from the mob movie that we the ones struggling to pay our dues are "special assessed to DEATH while some owners could care less except to pocket the rent.
YOU HAVE GOT TO BE KIDDING ME.