In short: No. The Third DCA affirmed a judgment against an HOA that sought compensation under Florida’s betterment statute, section 66.041, for improvements the developer built on common areas later sold at a sheriff’s sale. The statute pays a losing occupant for improvements it made under a belief of good title. The HOA neither made them nor held title.
The Facts
A developer, H.G. Enterprises at Centennial, built improvements on the common areas of a residential community while it held legal title to that land, and then abandoned the project. In 1999 the common areas were sold at a sheriff’s sale to satisfy the developer’s creditors. The buyer was Dolomite’s predecessor.
The Centennial Homeowners Association tried to intervene and set aside the sale, but it could not prove it owned the common areas, and the sale was confirmed in 2000. The new owner then sued the association in ejectment and won a final judgment in 2008, which the Third District affirmed in 2010.
The association then filed a betterment petition under section 66.041, asking to be paid for the developer’s improvements (described in argument as worth millions) and for any improvements it made itself while in possession. The trial court excluded evidence of the developer’s improvements. The jury found the association made no permanent improvements of its own, and judgment was entered for Dolomite.
The Decision
The Third District, in an opinion by Judge Rothenberg, affirmed. The betterment remedy exists to prevent unjust enrichment: a winning owner should not take the value of improvements a losing occupant made in good faith. To qualify, the petitioner must show it made the improvements, or bought the property, while believing its title was good.
Here the developer, not the association, built the improvements, and the association never held title or bought the land. Its belief about title was therefore beside the point. The trial court correctly limited the evidence to the association’s own improvements, and the association did not challenge the jury’s finding that it made none.
The Law
Section 66.041 lets a defendant who loses an ejectment action petition, within 60 days after judgment (or 20 days after the mandate if there was an appeal), to have its improvements valued and paid for. The petition must show the defendant, or those whose title it holds, possessed and permanently improved the land before the suit; that it did so under an apparently good title, such as a recorded deed or a purchase at a regular judicial sale; and that it believed its title was good when it made the improvements or bought the property. The statute has not been substantively changed since the decision.
The companion sections in Chapter 66 set out how the jury values the improvements and the land and how the owner can elect to pay or sell. See section 66.051 and the sections that follow.
Current law (2026): Section 66.041 is unchanged since 1995 (s. 349, ch. 95-147); 2026 text confirmed on flsenate.gov.
Lessons
- The betterment statute pays the person who made the improvements under a belief of good title, not someone who merely used them.
- An HOA’s rights in common areas depend on a recorded conveyance. If the developer never deeded the land, creditors of the developer can reach it.
- Homeowners in newer communities should confirm that common areas were actually conveyed to the association.
- Betterment petitions have short deadlines that run from the ejectment judgment or appellate mandate.
Source: Centennial Homeowners Ass'n v. Dolomite Co., No. 3D11-2966 — Fla. 3d DCA (July 25, 2012).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Betterment Statute — Can an HOA That Never Held Title Recover for Developer Improvements? | Centennial v. Dolomite
Go Deeper
- HOA and Condo Association Foreclosure in Florida: Notice Rules and Defenses
- Florida Condo Owners' Rights: Special Assessments, Records, and Disputes With the Association
Frequently Asked Questions
What is the betterment statute in Florida?
Section 66.041 lets a defendant who loses an ejectment case ask to be paid for permanent improvements it made to the land while in possession under an apparently good title it believed was valid. The goal is to keep the true owner from being unjustly enriched by someone else’s good-faith improvements.
Can an HOA lose its common areas to a developer's creditors in Florida?
Yes, if the developer still held title. In Centennial v. Dolomite, the common areas were still titled to the developer and were sold at a sheriff’s sale to pay its creditors. The association could not prove ownership and was later ejected.
Who can claim compensation for improvements under section 66.041?
The defendant who made the improvements, or who holds title from those who did, and who believed in good faith its title was valid. The Third DCA held an HOA could not claim the developer’s improvements when the HOA neither built them nor ever held or bought the land.
How long do I have to file a betterment petition in Florida?
Within 60 days after the ejectment judgment, or, if the judgment was appealed and affirmed, within 20 days after the appellate mandate is filed in the trial court. Missing the deadline can forfeit the claim. Calendar it the day the judgment or mandate is entered.
Talk to a Florida foreclosure and HOA lien lawyer
Weidner Law, P.A. handles Florida mortgage and association lien foreclosures from St. Petersburg. If you need a foreclosure defense lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
