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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 115464
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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In Florida a condominium is under blanket receivership. If

Customer Question

In Florida a condominium is under blanket receivership. If an owner is not in foreclosure, can the unit be placed in receivership? If the Association still can put the unit into receivership, if it is not under foreclosure, is there a time frame? How much delinquency should trigger placing in receivership? Should the association notify the owner about the intent to place the unit with the receiver?

Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Receivership means it cannot pay the bills as they are due. Can you please explain more what is going on? The whole building is under receivership? Is the unit owner in question paid up to date with the association? They are putting the individual unit under receivership and not just the association?
Customer: replied 2 years ago.

Yes, in 2009 because of the crisis with the condominiums in Florida, the Supreme Court allowed blanket receiverships, where the association can place a unit into receivership and the management company doing rentals would have to send all rental income to the court appointed receiver. The court order stays for years.

The owner of a condo-hotel unit missed her January payment as they were on vacation. She sent the money in February for 2 months, but the management company has the tendency not to cash the checks for 3 weeks, so they cashed it in March. It seems that when they did not have the two months worth of payment, they turned the unit to receiver.

The owner bought a unit in May 2013, and they never even heard about the receivership.

They did not receive any warning about the intent of the Association Management to place the unit with the receiver. The owner has the email from the Association manager dated March 24 that all money is paid and they are in good standing. When they did not get the check from the Front Desk for March, which was due at the end of April, they contacted the Front Desk and were told that the unit is with the receiver, and all money went to receiver.

They contacted the Association management and the answer was that they can contact the receiver themselves and pay $250 to be taken off the receivership.

Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your reply.

There is no time specified in the law to determine when they will send it to receivership. They are supposed to give notice to the owner prior to sending it to receivership, especially if as you said that payments were always on time and there was only a 1 month mistake and the company also held onto the check. You can actually seek to sue them for damages caused by their conduct of hanging onto the check to cause the delinquency actually and what you should do is pay the money to get the unit out of the receivership and then file suit in small claims court without an attorney to recover the money that you paid because had they properly posted payment you would not have had to go through this.