After Foreclosure: Must the Bank Pay Condo Fees in Florida?

No. Under Florida law (Fla. Stat. § 718.116), a bank or lender that acquires a condominium unit through foreclosure is not legally obligated to pay past-due assessments owed by the previous owner.

However, the bank becomes liable for assessments accruing after it takes title (typically at the foreclosure sale or certificate of title). Many banks voluntarily pay past dues to:

• Avoid association liens clouding title
• Expedite resale
• Prevent interest/late fees accruing on the unit

But they cannot be compelled to pay the prior owner's debt. The association's lien for past assessments is typically extinguished by the foreclosure judgment (if the association was joined or the mortgage had priority).

Practical tip: Associations should monitor foreclosure filings and bid at sale to protect interests.