A funny thing happened at one of the PM-EXPO’s that we hosted last month.
A condominium association president was concerned about his community association collections – when he asked an attorney to explain the meaning of a super lien, a third gentleman eagerly answered before the attorney could open his mouth. He told us that a super lien is a kind of lien that attaches to multiple properties. When he finally finished explaining, the attorney announced to all present that super liens in the community association world refer to something entirely different.
In Florida condominium and homeowner associations, Super Lien means that the condo association or HOA is entitled to recover from the bank upon foreclosure and taking title, a portion of the money owed for assessments. In Florida, if a unit has no equity and the bank forecloses and takes title, there is still responsibility on behalf of the first mortgage holder to pay the association. How much of a community association’s delinquent maintenance fees and/or interest plus penalties is collectible really depends upon which collection solution or lawyer you speak to and when you have spoken to them. Opinions and interpretations change often as this situation is still developing.
The gentleman who wanted to show that he knew it all did know something; it’s just that he knew wasn’t relevant and he didn’t know it all. He was correct that some liens – some mechanics liens and municipal liens are attached to more than one property. In these cases, an unpaid lien could end up attached to more than one of the owner’s properties. Before the owner can sell any of these properties, the Super Lien needs to be cured.
Chances are that if you are a condominium association president, you are trying to collect delinquent maintenance fees. If that’s the case, you’re invited to attend our next PM-EXPO where you can learn about community association collections.