A ruling in May by Florida’s Third District Court of Appeal added to the growing string of decisions in recent years illustrating how an old and outdated provision in HOA and condominium association declarations is preventing some communities from collecting what they would be owed under the current state law from purchasers in foreclosure actions. The new and past rulings cry out for community associations to review and consider amending their declarations to avoid the prospect of shooting themselves in the foot with their buyer/lender-friendly provisions from prior ages.

The ruling came in the case of Old Cutler Lakes by the Bay Community Association v. SRP SUB. The LLC took title to a unit within the community via a mortgage foreclosure auction and subsequently filed an action for declaratory relief seeking to determine its liability for the association assessments that accrued prior to acquiring title.

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