On July 1, 2011, Florida legislatures passed HB 1195, a law intended to revise and clarify issues relating to condo, cooperative, and homeowners’ associations. HB 1195 is often referred to as the “glitch” law. One important provision of HB 1195 allows associations to collect the full rent from tenants of delinquent owners as a method of recouping assessments. This is a huge benefit to associations with absentee owners.
Although South Carolina lacks a similar law, our courts always keep an eye on Florida when South Carolina law does not cover a particular community association issue. In fact, the South Carolina Court of Appeals stated that Florida law is “cited approvingly in jurisdictions throughout the country” and “when faced with unresolved questions in horizontal property law, courts often look to Florida law.” Queens Grant II Horizontal Prop. Regime v. Greenwood Dev. Corp., 368 S.C. 342, 363, 628 S.E.2d 902, 914, n. 12 (Ct. App. 2006). This could mean that South Carolina won’t be far behind it’s neighbor to the south.
Many governing documents may entitle the association to collect rent from tenants when the owner falls behind on payments, but associations should proceed with caution if the documents are not clear. If your association is struggling with delinquencies, contact an attorney to review your governing documents to find out if this collection method will work for you.
This site and any information contained herein is for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
Authors: Ryan McCabe