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A tax sale purchaser acquired title to eight Association lots at tax sale and subsequently failed to pay assessments due to the Association. The Association filed a lawsuit alleging that the purchaser was responsible for payment of all assessments due after the date of the tax sales. The purchaser disputed liability for assessments claiming that the title conveyed in the tax sales was not sufficient to trigger liability for assessments. In the trial court, Mr. Finamore argued that the defeasible title acquired by a tax sale purchaser is sufficient to obligate the purchaser to pay assessments to the same extent as any other owner. If this was not the case, a tax sale purchaser could acquire title, wait an unlimited amount of time, and ultimately reap the benefits of any increases in value after the tax sale without ever having to pay a proportionate share of the cost. After presentation of evidence on damages, the trial court entered a judgment in favor of the Association in the amount of $66,362.00, including all assessments due after the tax sales. The purchaser filed an appeal arguing that the Association’s claim was barred upon the expiration of the Association’s one year right of redemption and that a tax sale purchaser should not be responsible for assessments that it cannot recoup. Stephen Finamore and Elina Brim collaborated on the appellate response brief. They argued that the purchaser’s barment of the right of redemption did not have any impact on the liability for assessments. Liability was triggered automatically upon acquiring title at the tax sale and could be extinguished by barring redemption. The question of whether the purchaser could recoup assessments paid after a tax sale was not a matter the trial court could decide because the purchaser did not pay any of the assessments and no one ever redeemed. However, the trial court could correctly decide that the purchaser did not pay assessments when obligated to do so. The appellate court affirmed judgment entered by the trial court in favor of the Association.

Stephen Finamore is a Partner with Lueder, Larkin & Hunter, LLC, managing the community association collection department.  Stephen’s primary areas of practice are community association law, litigation, liability defense, and collections.  Elina Brim is also a Partner with the firm, and serves as general counsel for our community association clients, and focus their practice in the areas of community association law, insurance defense, and general litigation.