Wednesday, April 14, 2010

Banks Are Not Liable For Maintenance Fees Prior To Foreclosure

In Deutsche Bank National Trust Company v. Coral Key Condominium Association (4D09-3392), the Fourth District reversed the trial court's order which found "that it was fair and equitable for the mortgage holder to pay monthly assessments due to the Association if there is an extended period of delay in the foreclosure proceeding for no good reason."  The Fourth District held:
After the trial court entered the order appealed, the Third District issued U.S. Bank National Ass’n v. Tadmore, 23 So. 3d 822 (Fla. 3d DCA 2009), which addressed this precise issue. In Tadmore, the court rejected the notion that equity and fairness support an order requiring a bank to pay condominium assessments while foreclosure proceedings are pending since section 718.116(1)(b), Florida Statutes (2009), makes it clear that the first mortgagee is required to pay assessments only after acquiring title, and equity follows the law. Id. at 823–24. We agree with Tadmore and reverse.
Tadmore was discussed HERE.


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