It took a while, but the Florida Supreme Court recently upheld a 2011 5th District Court of Appeals’ decision invalidating a city ordinance that gave priority to code enforcement liens over prior-recorded mortgages. City of Palm Bay v. Wells Fargo Bank, N.A., Case No. SC11-830 (May 16, 2013). Palm Bay’s ordinance had attempted to
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Code Enforcement Liens Lack Priority Over Prior-Recorded Mortgages
By Russell Schropp on
Posted in Judicial Update
Code enforcement liens that were granted “superpriority” status by a local government ordinance were held to lack priority to a prior-recorded mortgage in a recent Florida appellate court decision. City of Palm Bay v. Wells Fargo Bank, N.A., 36 Fla. L. Weekly D161 (Fla. 5th DCA January 21, 2011).
The City of Palm Bay enacted an ordinance creating its Code Enforcement Board in 1997. Under the ordinance, liens on real property created by the Board would be co-equal with state and local tax liens, and would be “superior in dignity to all other liens, titles and claims.”…
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