On behalf of all of our association clients, we have been undertaking further investigation and monitoring of the developments following the Circuit Court decision from earlier this year, in which a Miami-Dade Circuit Court Judge granted an Order to appoint a Receiver to collect rent from tenants residing within units that are in foreclosure with the Association. As part of this investigation, we reviewed the court records and met with the Receiver appointed in that initial case to discuss the benefits and pitfalls of the “blanket receiver” option.
Through our investigations and contacts, we have been made aware of a handful of other successful Petitions for the Appointment of a Blanket Receiver in Miami-Dade. We are also aware of Petitions that have been filed recently in Broward County, although to our knowledge, no ruling has yet been issued on those Petitions.
Based on this further review (and in light of the very recent 3rd District Court of Appeal decision that is viewed as upholding the appointment of a blanket receiver, notwithstanding the possible jurisdiction concerns raised by many), it is apparent to us that the “blanket receiver” option is one that should be seriously considered for any community that has a number of units in foreclosure with the association, which remain occupied by tenants of the delinquent owner. While there certainly remains no guaranty of success on getting the Order for the Appointment of a Blanket Receiver granted, the recent 3rd DCA decision does provide a basis to be optimistic regarding the likelihood of obtaining the approval of the blanket receiver.
To that end, we are already working with some of our Association clients to undertake the Petition process to seek the appointment of a “blanket receiver”. If you are interested in learning more about the process or having our Firm assist your Association with the filing of a Petition for the Appointment of a Blanket Receiver, please contact us.
We also remind you of another option for the collection of rents which we have been recommending to all of our Association clients for many years; the use of a document which we call an “Authorization Agreement to Collect Rent.” The Authorization Agreement to Collect Rent form is to be used in the lease approval process, if the association has such approval within the governing documents. With the use of this Agreement, the association should be able to collect rents from any tenant that has such an Agreement in their file without any court involvement (or possibly any attorney involvement). This would be the most cost effective and efficient remedy for a Board of Directors to be pursuing to attempt the collection of rents from tenants residing in units owned by owners delinquent in their maintenance account.
Please contact us if you have further questions on this issue or would like to have an Authorization to Collect Rent Agreement prepared for your Association.