SB 1454 Summary

• Authorizes condominium associations (Chapter 514A and 514B) and planned community associations (Chapter 421J) to conduct nonjudicial power of sale foreclosures for unpaid common expenses, without requiring declaration or bylaw provisions to permit such foreclosures.

• Requires associations to provide notice of foreclosure by certified mail, first class mail, posted notice on the unit, and newspaper publication at least 21 days before the sale; notice must be sent to the unit owner, mortgage creditors, state director of taxation, and county director of finance.

• Allows associations to credit bid up to the amount of their lien at foreclosure auctions and permits successful bidders to pay only 10% down with the balance remaining due; successful bidder's interest is subject to prior liens.

• Limits special assessments against subsequent purchasers of foreclosed units to the unpaid regular monthly common assessments from the six months preceding foreclosure completion, capped at $3,600; purchasers holding prior mortgages are exempt.

• Provides unit owners the right to dispute assessments by paying in full and pursuing mediation or arbitration; establishes that disputes over assessment amounts cannot be used as a defense to foreclosure proceedings.