S.B. 551 Summary

• Clarifies that condominium associations may conduct nonjudicial or power of sale foreclosures to collect unpaid assessments regardless of whether their governing documents contain explicit power of sale language.

• Requires associations to include a mediation option in notices of default and intention to foreclose, allowing unit owners 30 days to request mediation, and prohibits foreclosure proceedings for up to 60 days while mediation occurs.

• Adds consumer protection warnings to foreclosure notices specifying that the notice pertains only to association liens and not other debts like mortgages, and requires notices be printed in at least 14-point font.

• Prohibits associations from using nonjudicial foreclosure for liens arising solely from fines, penalties, legal fees, or late fees, and protects military personnel on active duty deployment from foreclosure unless the lien has been outstanding for one year or longer.

• Applies the amendments retroactively to pending foreclosure cases and actions that arose before the effective date and have not yet received a final judgment.