If you purchase a tax lien at the auction you are not the owner of the property only the owner of the tax note. The property owner will owe the taxes plus the interest on the note to the note holder. Therfore you do not need to pay the HOA fees past due.
If you purchase a property at a foreclosure auction you are liable for all outstanding liens aganist the property you purchased.
You need to be certain what type of auction you made you purchase at, in order to know your rights and responsibilities.
I would suggest you contact a real estate attorney for assistance.
If you have any other questions or would like more info feel free to contact me.
Question really is, what is the difference between a Sheriff sale and a tax sale? Adrian I think you may have been referring to a sheriff sale and not a tax sale. Bank auctions are like sheriif sales but private and held at title companies and attorney offices.
If a lender forecloses I believe the liability is limited to 1 year HOA or 6 months condo assessments. Not sure if this applies to a buyer at a foreclosure auction.
HOA and condo attorneys tend to be a sleazy lot so I wouldn't trust that they are lawfully going after the new owner for the correct amount.
It would be well worth it for your client to contact an attorney who is well versed in HOA laws. I can highly recommend one of the few respectable HOA attorneys in Florida:
Brudny & Rabin PA
200 Pine Ave N # A
Oldsmar, FL 34677-4646
Hope this helps.
My friend buys at auction in FL and yes, the new owner is responsible for paying all outstanding liens, including HOA fees.
That is why so important to perform a title search prior to bidding on the particular property to find out what types of liens are involved etc.
The new owner may try to negotiate with the HOA to reduce the amount or even waive these fees (which in most cases is not so easy).
In Florida, associations are limited in the amount they can recover from a new owner when purchased under distressed conditions (foreclosure, tax, etc.). I don't know what situations are covered and which are not.
I know in the case of a short sale, the lawyer I work with is usually able to negotiate fees in arrears to below those limits
Absolutely the new owner pays for not just the HOA liabilities but other also.
That's the risk a new owner takes by buying at auction.
Perry and Ruth
Certified Distressed Property Expert.