Q&A – Back Dues

Q. Does F.S. section 718.116 apply to a short sale as well as a foreclosure where the lender who takes title is to pay 1% or 12 months, whichever is less?  I have a lender wanting the Association to take 6 months back dues – not 12 months.

A. The 12 months or 1% only applies where the lender takes title through foreclosure or deed in lieu of foreclosure and does not apply in a short sale.

If the subject property is a condominium, the parties may not agree to accept less than the full amount due in a short sale. If the amount due is reduced for one owner it must be reduced for all owners – the same amount. If the subject property is an HOA, the HOA statute does not have the same language. In either case, I would strongly suggest consulting with the Association attorney before agreeing to any adjustments in a short sale.

About Fred Gray

Fred Gray is the owner and President of Gray Systems, Inc and is a licensed general contractor in the state of Florida. Fred has been part of the Community Association Manager Continuing Education industry in Florida since 1988.
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