Assignment of Rents in Florida
An assignment of rents grants a Florida lender a security interest in the rental income generated by mortgaged property. Governed by Section 697.07, this instrument provides the lender with a separate collateral stream beyond the property itself.
Perfection and Priority
A Florida assignment of rents is perfected by recording in the county official records. Once recorded, the assignment creates a lien on the rents with priority determined by the recording date. The assignment is typically included in or referenced by the mortgage document, though it can be executed as a separate instrument. Recording provides constructive notice to tenants and subsequent lienholders.
Enforcement Upon Default
When the borrower defaults, the Florida lender can activate the assignment of rents by sending written demand to tenants directing payment to the lender, seeking court appointment of a receiver to manage the property and collect rents, or applying to the court for an order sequestering the rents. The lender does not need to take physical possession of the property to enforce the assignment.
Related Terms
- Mortgage
- Receiver
- Foreclosure
Barnes Walker Real Estate
Barnes Walker enforces and defends against rent assignment claims in Southwest Florida. Contact us for commercial mortgage guidance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC