Chapter 10-4 Governmental Entities

10-4 Governmental Entities

10-4:1 Local Government Liens

Certain liens have priority over a first mortgage regardless of the date of recordation, a phenomenon known as "superpriority." The plaintiff will be unable to foreclose such liens. An example of a superpriority lien is a tax lien imposed by the state of Florida.⁶⁹

Local taxing districts also have the authority to impose liens on the subject property, which may be either recorded or unrecorded. These subordinate interests in the property should be alleged in the foreclosure complaint and identified with particularity.⁷⁰ The complaint also should include allegations to foreclose any local code enforcement liens on the property.⁷¹ Plaintiffs should bear in mind that the limitation period for the enforcement of code enforcement liens is twenty years.⁷²

10-4:2 Internal Revenue Service

The United States of America may be named as a junior lienholder by virtue of any tax lien on the subject property.⁷³ Prior recorded mortgages have priority over later recorded Internal Revenue Service liens.⁷⁴ If the mortgage is inferior to the federal lien, the sale will be subject to the government's lien if it consents that the property may be sold free of its lien and the proceeds divided as the parties may be entitled.⁷⁵

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Notes:

^[69] See Fla. Stat. § 197.122. Some special assessments also enjoy superpriority status. Fla. Stat. § 170.09. Tax deeds have priority status over other liens except for municipal liens. Fla. Stat. § 197.552. Further discussion of the subject of the priority of various kinds of liens may be found in Argent Mortg. Co., LLC v. Wachovia Bank N.A., 52 So. 3d 796 (Fla. 5th DCA 2010); Barton v. MetroJax Property Holdings, LLC, 207 So. 3d 304, 306 (Fla. 3d DCA 2016) and Miami-Dade Cty. Lansdowne Mortg., LLC, 235 So. 3d 960, 961 (Fla. 3d DCA 2017).

^[70] Fla. Stat. § 69.041 ("The complaint shall set forth with particularity the nature of the interest claimed by the state in such real property with respect to quiet title proceedings. In the case of mortgage or lien foreclosure, the complaint shall set forth with particularity the nature of the lien claimed by the state in such real property.").

^[71] The authority and procedure by which municipalities may impose administrative fines and liens against property is set forth in the Local Government Code Enforcement Boards Act. Fla. Stat. § 162.09. A municipal ordinance cannot establish a superpriority status for code enforcement liens over prior recorded...