Monday, December 7, 2009

Bank Not Liable For Maintenance Fees Prior To Foreclosure

In U.S. Bank National Ass’n v. Tadmore, 23 So. 3d 822 (Fla. 3d DCA 2009) (3D09-1389), the Third District reversed the trial court's oder requiring the bank to "'diligently proceed with the [instant] pending foreclosure action . . . within thirty (30) days' or pay monthly maintenance fees on the condominium unit in foreclosure."  The Third District "treated the instant order as an order granting an injunction which we reverse because there is no basis for imposing such fees as a sanction or otherwise in this case."  The court held:
The law is that a first mortgagee may be required to pay condominium maintenance fees after it acquires title and then only in a limited amount. Since equity follows the law, it cannot be utilized to impose this obligation without limitation before title is passed.
Because the bank had not yet foreclosed on the property, it was not subject to monthly maintenance fees.

[Update: The Fourth District agreed with Tadmore in Deutsche Bank National Trust Company v. Coral Key Condominium Association (4D09-3392), which was discussed HERE].


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