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   2011 Legislative
  Update Chapter
     2011 - 196
Effective July 1, 2011
                         1
Condominium Manual Fire Alarm System
                     633.0215, F.S.



Amends § 633.0215, F.S., to add cooperatives or
  multifamily residential buildings that are less than four
  stories with an exterior corridor for egress to the
  exemption from installing a manual fire alarm system
  required in the Life Safety Code adopted in the Florida
  Fire Prevention Code.




                                                              2
Access and Maintenance of Association
               Records
               718.111(12)(a),(c), F.S.




Amends § 718.111(12), F.S., to add unit owner facsimile
  numbers as a record to be maintained by the association
  if the unit owner consents to receive information via this
  means.




                                                               3
Access and Maintenance of Assn. Records
                718.111(12)(a),(c), F.S.
Additional records not accessible to unit owners:
•   Personnel records of association employees, and of the
    management company, including, but not limited to,
    disciplinary, payroll, health and insurance records.
•   However, it now provides that unit owners may
    access written employment agreements with an
    association employee or management company, or
    budgetary or financial records that indicate the
    compensation paid to an association employee.




                                                         4
What Unit Owner Records are Accessible?

Unit owners are now only allowed access to a unit owner’s
  name, unit number, mailing address and property
  address.

   However, if the unit owner has consented in writing to
    receive notice by facsimile, e-mail or other address,
    these records would be accessible and an owner may
    consent in writing to the disclosure of protected
    information.




                                                            5
Association Records – Liability
            718.111(12)(c)5., F.S.
The association is not liable for the inadvertent disclosure
  of information that is protected under this section if the
  information is included in an official record of the
  association and is voluntarily provided by an owner
  and not requested by the association.




                                                               6
Board of Directors Meetings
                     718.112, F.S.
Amends § 718.112(2)(c)3.b., F.S., to allow condominium
  association boards the right to hold closed meetings to
  discuss personnel matters.
      Note: Personnel are employees of the association
       and not independent contractors.




                                                            7
Candidates for the Board
              718.112(2)(d)2., F.S.
Defines the term “Candidate” as an eligible person who
  has timely submitted their written notice of intent to
  become a candidate.

   This does not apply in a timeshare condominium, or if
     the staggered term of a board member does not
     expire until a later annual meeting, or if all members’
     terms would otherwise expire but there are no
     candidates.




                                                               8
Candidates for the Board
                  continued…
Any unit owner or other eligible person desiring to be a
  candidate for board membership must give written notice
  of their intent to be a candidate to the association at
  least 40 days before the scheduled election and must be
  eligible to serve on the board of directors at the time
  of the deadline for submitting a notice of intent to
  run. Therefore:
   •  An incumbent board member is eligible for re-election
      unless the bylaws prohibit it.
   •  A person who has been suspended or removed by
      the division under this chapter, or who is more than
      90 days delinquent in the payment of any fee, fine, or
      special or regular assessment, is not eligible for board
      membership.

                                                             9
Candidates for the Board
                continued…
•   In a association of more than 10 units, co-owners of a
    unit may not serve on the board at the same time
    unless they own more than one unit or there are not
    enough eligible candidates to fill the vacancies on the
    board at the time of the election.
•   A convicted felon who has not had their civil rights
    completely restored for more than 5 years in not
    eligible for board membership.




                                                           10
Candidates for the Board
                   continued…
•   If the number of board members whose terms expire at
    the annual meeting equals or exceeds the number of
    candidates, the candidates become members of the
    board effective upon the adjournment of the annual
    meeting. (Formerly they were eligible to be
    reappointed but were not automatically back on the
    board.)
•   Unless otherwise provided in the bylaws, any remaining
    vacancies shall be filled by the affirmative vote of the
    majority of the directors making up the new board even if
    there are less than a quorum or even 1 director. (This
    would be an appointment.)

                                                           11
Elections
                718.112(2)(d)4., F.S.
Timeshare condominiums must now comply with the
  election requirements under § 718.112(2)(d)4.a, F.S.,
  (formerly § 718.112(2)(d)3., F.S.) However, it does not
  limit the use of general or limited proxies, require the
  use of general or limited proxies, or require the use of a
  written ballot or voting machines for any agenda item or
  election at any meeting of a timeshare condominium
  association.




                                                               12
Board Member Certification
              718.112(2)(d)4,b., F.S.
•   Newly elected or appointed board member may submit a
    certificate of satisfactory completion of educational
    curriculum administered by a division-approved
    condominium provider which was either taken 1 year
    before the election or 90 days after being elected or
    appointed.
•   The certification is valid and does not have to be
    resubmitted as long as the director continuously serves
    on the board.



                                                              13
Hurricane Protection
                  718.113(5)(a),F.S.




Amends § 718.113(5)(a), F.S., to add the terms “impact
  glass or other code-compliant windows” to the
  section of the statute that covers hurricane shutter
  specifications.




                                                         14
Agreements, Leaseholds and Memberships
              718.114, F.S.

Amends § 718.114, F.S., to allow unit owners to enter into
  agreements, acquire leaseholds, memberships, and
  other possessory or use interests in lands or facilities
  upon a vote of, or written consent by a majority of the
  total voting interests of an association or as authorized
  under the declaration. Consider whether the declaration
  as originally recorded or amended may authorize a
  board vote without a unit owner vote as provided in §
  718.113(2)(a), F.S.



                                                          15
Association Foreclosure
                  718.116(2), F.S.
Amends § 718.116(2), F.S., to provide that an association,
  its successor or assignee that acquires title to a unit
  through the foreclosure of its lien for assessments is not
  liable for any unpaid assessments, late fees, interest, or
  reasonable attorney’s fees and costs that came due
  before the association’s acquisition of title in favor of an
  association which holds a superior lien interest on the
  unit.




                                                             16
Unit Owner Delinquency
          Right to Collect from Tenant
               718.116(11), F.S.

Amends § 718.116(11), F.S., to clarify that when an owner
  in a condominium is delinquent in the payment of any
  monetary obligation to the association, the association
  may demand that the owner’s tenant pay any unpaid
  monetary obligation due related to the unit to the
  association until all monetary obligations of the
  owner have been paid in full.




                                                        17
Unit Owner Delinquency
                    Notice to Tenant
                   718.116(11), F.S.
•   The association must provide the tenant a statutory
    notice, by hand delivery or United States mail in a
    specific format when requesting rent.
•   After receiving the association’s notice, the tenant is not
    liable to the owner/landlord for any rent paid to the
    association instead of the owner.
•   The tenant’s payment to the association begins after
    receiving notice. If the tenant has already made a
    payment to the unit owner/landlord for the month the
    notice was received, the tenant may avoid paying the
    association for that month if the tenant provides written
    evidence of payment.
                                                                18
Unit Owner Delinquency
           Notice to Tenant continued…
•   The tenant must pay the association until released or
    until the tenant vacates the unit.
•   The tenant is not liable for more than the owner’s
    delinquency.
•   The association may evict the owner’s tenant for non-
    payment after the notice is delivered under Ch. 83, F.S.




                                                               19
Termination Provision – Timeshare
                 Condominium
                718.117(2), F.S.
•   Amends § 718.117(2), F.S., to add sub-sub paragraph
    (c), stating a condominium that includes units and
    timeshare estates where the improvements have been
    totally destroyed or demolished, may be terminated by a
    plan of termination proposed by a “whole unit owner”
    upon filing a petition in court seeking equitable relief.
•   Within 10 days of filing the petition, the petitioner must
    record the proposed plan of termination and mail a copy
    of the proposed plan and petition to each member of the
    board of directors, if the association has not been
    dissolved, the managing entity, each unit owner, each
    timeshare estate owner, and each holder of a recorded
    mortgage lien affecting a unit or timeshare estate.

                                                             20
Termination Provision – Timeshare
          Condominium continued…
                718.117(2), F.S.
•   If the association has not been dissolved, any affected
    party may intervene in the proceedings to contest the
    proposed plan of termination.
•   If no party contests the proposed plan within 45 days of
    filing the petition, the petitioner may move the court to
    enter a final judgment to authorize the plan of
    termination be implemented. The plan will not be
    implemented until a final judgment is rendered.




                                                                21
Condominium Termination and Change of
              Ownership
        718.117(3),(4),(11), F.S.
Amends § 718.117(3)(4) and (11), F.S., to clarify the
  condominium termination provision and allows a partial
  termination as long as the percentages of ownership
  changes are proportionate to what was terminated.
   For example, a condominium originally consisted of 100
     units with each unit owner having a 1/100 share in the
     common elements has 50 of the 100 units destroyed
     by a storm, this change now allows the association to
     terminate the 50 as long as the ownership interests
     change to 1/50. This would not be a considered a §
     718.110(4), F.S., amendment.

                                                           22
Condominium Termination and Change of
           Ownership continued…
•    Trustee does not get title to surviving units, which
     remain in the owners’ names.
•    Proceeds from the partial termination are distributed
     based on the value of the terminated units and
     common elements.
•    Any liens are placed on the unit being terminated and
     sold.




                                                             23
Termination and Change of Ownership
                  continued…
•   The terminated portion may be redeveloped as a
    condominium.
•   An amendment to the declaration is recorded for the
    surviving portion of the condominium to reflect the partial
    termination.




                                                             24
Suspension of Use Rights
          for Document or Rule Violation
                    718.303(3), F.S.

Provides that the association may suspend for a
  reasonable period of time, the right of a unit owner or a
  unit owner’s tenant, guest, or invitee, to use the common
  elements, common facilities, or any other association
  property for failure to comply with any provision of the
  declaration, the association bylaws, or reasonable
  rules of the association.




                                                         25
Fine or Suspension of Use Rights
                 718.303(3), F.S.
•   A fine or suspension may not be imposed except
    after giving at least 14 days’ written notice and an
    opportunity for a hearing to the unit owner and, if
    applicable, its occupant, licensee, or invitee. The hearing
    must be held before a committee of other unit owners
    who are neither board members nor persons residing in
    a board member’s household.
•   If the committee does not agree, the fine or suspension
    may not be imposed.



                                                              26
Suspension of Use and Voting Rights
         More than 90 days delinquent
            Noticing Requirements
•   Amends § 718.303(3), F.S., to clarify the noticing
    procedures to be followed by the condominium
    association when suspending use and voting rights when
    an owner is more than 90 days delinquent in the
    payment of any monetary obligation.
•   Specifically, it provides that it must be approved at a
    properly noticed (48 hours) board meeting.
•   If approved, the board must notify the unit owner and, if
    applicable, the unit’s occupant, licensee, or invitee by
    mail or hand delivery.


                                                                27
Change in Quorum
                    718.303(5), F.S.
•   The suspended voting interest or consent right may not
    be counted towards the total number of voting interests
    necessary to constitute a quorum, the number of voting
    interests required to conduct an election, or the number
    of voting interests required to approve an action under
    this chapter or pursuant to the declaration, articles of
    incorporation, or bylaws.
    -   For example if there are 100 units in the association
        and 10 have lost their voting rights, the quorum
        requirement would now be based on 90 instead of
        100. With 100 units the quorum requirement would
        be 51 units. For 90, it would be 46 units.
•   The suspension ends upon full payment of all obligations
    currently due or overdue the association.
                                                                28
Bulk Assignee and Bulk Buyer
                 718.703, F.S.
Amends § 718.703, F.S., to redefine the terms “bulk
  assignee” and “bulk buyer”, to mean a person who
  acquires title to more than 7 units in a single
  condominium. Also adds some additional rewording of
  this section to clarify.




                                                        29
Bulk Assignee and Bulk Buyer
                      continued…
•   A mortgagee or its assignee may not be deemed a bulk assignee
    or a developer by reason of the acquisition of condominium units
    and receipt of an assignment of some or all of a developer’s rights
    and therefore doesn’t have to file with the division. A mortgagee or
    its assignee may exercises the following developer rights without
    being a bulk assignee or developer:
     -   Sales, leasing, and marketing activities within the condominium;
     -   Exemption from the payment of working capital contributions to
         the condominium association arising out of, or in connection
         with, the bulk buyer’s acquisition of the units; and
     -   Exemption from the association’s rights of first refusal if any, for
         subsequent transfers of title to a third party purchaser.




                                                                            30
Bulk Assignee
          Assignment of Developer Rights
                 718.704, F.S.
•   A bulk assignee (but not a mortgagee or its assignee,
    see previous slide), is deemed to have assumed and is
    liable for all duties and responsibilities of the developer
    under the declaration and this chapter upon its
    acquisition of title to the units and continuously
    thereafter, except that it is not liable for warranties of the
    developer under § 718.203(1) or § 718.618 (converter
    reserves) except those it assumes and gives in a
    prospectus or offering circular, or in its purchasers’
    contracts.
•   If the bulk assignee agrees in the assignment, it is liable
    for the developer’s guarantee from the date of its title,
    but not liable if it did not accept the assignment of the
    guarantee.
                                                                 31
Bulk Assignee Assignment of Developer
              Rights continued…

•   A bulk assignee can only take those developer rights of
    the entity it buys from; it can’t reach back to the original
    developer if the rights were not passed on to the interim
    buyer, mortgagee or court. If there has been a transfer
    to another person before the bulk assignee, then this
    interim assignment determines the extent of the bulk
    assignee’s assignment.
•   A copy of the assignment(s) is mandatory to determine
    what developer rights and liabilities the bulk assignee
    accepted.


                                                              32
Bulk Assignee – Turnover
                    718.705, F.S.
•   Clarifies the provisions relating to turnover of control of
    the condominium from a “bulk assignee” to the unit
    owners. If the developer has not turned over control,
    then the bulk assignee’s units do not count toward the
    number of developer units conveyed to calculate the
    percentages for turnover under § 718.301, F.S.
•   If the bulk assignee turns over, then it must give the
    association the § 718.301(4), F.S. items unless it did not
    get these items from the developer. However, it must
    make a good faith effort to get the items from the
    developer and certify those documents it could not get to
    the association.
                                                                  33
Bulk Assignee and Bulk Buyer – Offering
                    Units
                718.706, F.S.
•   Amends § 718.706, F.S., to revise the provisions
    pertaining to offering of units by a “bulk assignee” and
    “bulk buyer”. When the statute addresses the number of
    units offered for filing purposes, the bill adds offering
    more than 7 units in a single condominium as a
    minimum.
•   Exempts a “bulk assignee” or “bulk buyer” from filing if all
    of the units they own are offered and conveyed to a
    single purchaser in a single sale.


                                                              34
Bulk Assignee and Bulk Buyer – Time
                 Limitation
               718.707, F.S.
Amends § 718.707, F.S., to clarify that a person acquiring
  condominium parcels may not be classified as a “bulk
  assignee” or “bulk buyer” unless the condominium
  parcels were acquired on or after July 1, 2010, but
  before July 1, 2012.




                                                             35
Cooperative Changes
   Ch. 719 F.S.




                      36
Unit Owner Delinquency
          Right to Collect from Tenant
             719.108(10)(a), F.S.
•   The association must provide the tenant a statutory
    notice, by hand delivery or United States mail in a
    specific format when requesting rent.
•   After receiving the association’s notice, the tenant is
    not liable to the owner/landlord for any rent paid to the
    association instead of the owner.
•   The tenant’s payment to the association begins after
    receiving notice. If the tenant has already made a
    payment to the unit owner/landlord for the month the
    notice was received, the tenant may avoid paying the
    association for that month if the tenant provides written
    evidence of payment.
                                                            37
Unit Owner Delinquency
           Notice to Tenant continued…
•   The tenant must pay the association until released or
    until the tenant vacates the unit.
•   The tenant is not liable for more than the owner’s
    delinquency.
•   The association may evict the owner’s tenant for non-
    payment after the notice is delivered under Ch. 83, F.S.




                                                               38
Suspension of Use Rights for Document
                  Violations
             719.303(3)(a), F.S.
•   Provides that the association may suspend for a
    “reasonable period of time”, the right of a unit owner or a
    unit owner’s tenant, guest, or invitee, to use the common
    elements, common facilities, or any other association
    property for failure to comply with any provision of the
    cooperative documents or reasonable rules of the
    association. “Reasonable period of time” is a question of
    fact in the specific circumstances and up to a judge.




                                                             39
Fine or Suspension of Rights
                  719.303(a), F.S.
•   A fine of not more than $100 per violation or a total of
    $1,000, or suspension of rights, may not be imposed
    except after giving reasonable notice (14 days) and
    opportunity for a hearing to the unit owner and if
    applicable, it’s occupant, licensee, or invitee. The
    hearing must be held before a committee of other unit
    owners.
•   If the committee does not agree with the fine or
    suspension, it may not be imposed.




                                                               40
90 Day Delinquency
         Suspension of Use and Voting Rights
               Noticing Requirements
                  719.303(6), F.S.
•   Adds § 719.303(6), F.S., to clarify the noticing
    procedures to be followed by the cooperative association
    when suspending use and voting rights when an owner
    is more than 90 days delinquent in the payment of any
    monetary obligation.
•   Specifically, it provides that it must be approved at a
    properly noticed board meeting(48 hours).
•   If approved, the board must notify the unit owner and, if
    applicable, the unit’s occupant, licensee, or invitee by
    mail or hand delivery.

                                                                41
Change in Quorum
                    719.303(5), F.S.
Provides that a voting interest or consent right allocated to
  a unit or member who has been suspended by the
  cooperative association may not be counted towards the
  total numbers of voting interests necessary to constitute
  a quorum, the number of voting interests required to
  conduct an election, or the number of voting interests
  required to approve an action under this chapter or
  pursuant to the cooperative documents, articles of
  incorporation, or bylaws.
   For example if there are 100 units in the cooperative
     association and 10 have lost their voting rights, the
     quorum requirement would now be based on 90
     instead of 100. With 100 units the quorum
     requirement would be 51 units. For 90, it would be 46
     units.                                                42
Customer Contact Center
For additional information concerning the
  Condominium Act and to request copies of
  educational materials available to condominium
  unit owners you may contact the Department’s
  Customer Contact Center at Center at
  1-800-226-9101 (Florida Only) or 850-488-1122.
You may also e-mail the Department at
            call.center@dbpr.state.fl.us
Statutes and other information concerning the
  division are available on the World Wide Web at
      www.myfloridalicense.com/dbpr/lsc/index.html


                                                     43

2011 Legislative Updates

  • 1.
    BACK TO MENU 2011 Legislative Update Chapter 2011 - 196 Effective July 1, 2011 1
  • 2.
    Condominium Manual FireAlarm System 633.0215, F.S. Amends § 633.0215, F.S., to add cooperatives or multifamily residential buildings that are less than four stories with an exterior corridor for egress to the exemption from installing a manual fire alarm system required in the Life Safety Code adopted in the Florida Fire Prevention Code. 2
  • 3.
    Access and Maintenanceof Association Records 718.111(12)(a),(c), F.S. Amends § 718.111(12), F.S., to add unit owner facsimile numbers as a record to be maintained by the association if the unit owner consents to receive information via this means. 3
  • 4.
    Access and Maintenanceof Assn. Records 718.111(12)(a),(c), F.S. Additional records not accessible to unit owners: • Personnel records of association employees, and of the management company, including, but not limited to, disciplinary, payroll, health and insurance records. • However, it now provides that unit owners may access written employment agreements with an association employee or management company, or budgetary or financial records that indicate the compensation paid to an association employee. 4
  • 5.
    What Unit OwnerRecords are Accessible? Unit owners are now only allowed access to a unit owner’s name, unit number, mailing address and property address. However, if the unit owner has consented in writing to receive notice by facsimile, e-mail or other address, these records would be accessible and an owner may consent in writing to the disclosure of protected information. 5
  • 6.
    Association Records –Liability 718.111(12)(c)5., F.S. The association is not liable for the inadvertent disclosure of information that is protected under this section if the information is included in an official record of the association and is voluntarily provided by an owner and not requested by the association. 6
  • 7.
    Board of DirectorsMeetings 718.112, F.S. Amends § 718.112(2)(c)3.b., F.S., to allow condominium association boards the right to hold closed meetings to discuss personnel matters. Note: Personnel are employees of the association and not independent contractors. 7
  • 8.
    Candidates for theBoard 718.112(2)(d)2., F.S. Defines the term “Candidate” as an eligible person who has timely submitted their written notice of intent to become a candidate. This does not apply in a timeshare condominium, or if the staggered term of a board member does not expire until a later annual meeting, or if all members’ terms would otherwise expire but there are no candidates. 8
  • 9.
    Candidates for theBoard continued… Any unit owner or other eligible person desiring to be a candidate for board membership must give written notice of their intent to be a candidate to the association at least 40 days before the scheduled election and must be eligible to serve on the board of directors at the time of the deadline for submitting a notice of intent to run. Therefore: • An incumbent board member is eligible for re-election unless the bylaws prohibit it. • A person who has been suspended or removed by the division under this chapter, or who is more than 90 days delinquent in the payment of any fee, fine, or special or regular assessment, is not eligible for board membership. 9
  • 10.
    Candidates for theBoard continued… • In a association of more than 10 units, co-owners of a unit may not serve on the board at the same time unless they own more than one unit or there are not enough eligible candidates to fill the vacancies on the board at the time of the election. • A convicted felon who has not had their civil rights completely restored for more than 5 years in not eligible for board membership. 10
  • 11.
    Candidates for theBoard continued… • If the number of board members whose terms expire at the annual meeting equals or exceeds the number of candidates, the candidates become members of the board effective upon the adjournment of the annual meeting. (Formerly they were eligible to be reappointed but were not automatically back on the board.) • Unless otherwise provided in the bylaws, any remaining vacancies shall be filled by the affirmative vote of the majority of the directors making up the new board even if there are less than a quorum or even 1 director. (This would be an appointment.) 11
  • 12.
    Elections 718.112(2)(d)4., F.S. Timeshare condominiums must now comply with the election requirements under § 718.112(2)(d)4.a, F.S., (formerly § 718.112(2)(d)3., F.S.) However, it does not limit the use of general or limited proxies, require the use of general or limited proxies, or require the use of a written ballot or voting machines for any agenda item or election at any meeting of a timeshare condominium association. 12
  • 13.
    Board Member Certification 718.112(2)(d)4,b., F.S. • Newly elected or appointed board member may submit a certificate of satisfactory completion of educational curriculum administered by a division-approved condominium provider which was either taken 1 year before the election or 90 days after being elected or appointed. • The certification is valid and does not have to be resubmitted as long as the director continuously serves on the board. 13
  • 14.
    Hurricane Protection 718.113(5)(a),F.S. Amends § 718.113(5)(a), F.S., to add the terms “impact glass or other code-compliant windows” to the section of the statute that covers hurricane shutter specifications. 14
  • 15.
    Agreements, Leaseholds andMemberships 718.114, F.S. Amends § 718.114, F.S., to allow unit owners to enter into agreements, acquire leaseholds, memberships, and other possessory or use interests in lands or facilities upon a vote of, or written consent by a majority of the total voting interests of an association or as authorized under the declaration. Consider whether the declaration as originally recorded or amended may authorize a board vote without a unit owner vote as provided in § 718.113(2)(a), F.S. 15
  • 16.
    Association Foreclosure 718.116(2), F.S. Amends § 718.116(2), F.S., to provide that an association, its successor or assignee that acquires title to a unit through the foreclosure of its lien for assessments is not liable for any unpaid assessments, late fees, interest, or reasonable attorney’s fees and costs that came due before the association’s acquisition of title in favor of an association which holds a superior lien interest on the unit. 16
  • 17.
    Unit Owner Delinquency Right to Collect from Tenant 718.116(11), F.S. Amends § 718.116(11), F.S., to clarify that when an owner in a condominium is delinquent in the payment of any monetary obligation to the association, the association may demand that the owner’s tenant pay any unpaid monetary obligation due related to the unit to the association until all monetary obligations of the owner have been paid in full. 17
  • 18.
    Unit Owner Delinquency Notice to Tenant 718.116(11), F.S. • The association must provide the tenant a statutory notice, by hand delivery or United States mail in a specific format when requesting rent. • After receiving the association’s notice, the tenant is not liable to the owner/landlord for any rent paid to the association instead of the owner. • The tenant’s payment to the association begins after receiving notice. If the tenant has already made a payment to the unit owner/landlord for the month the notice was received, the tenant may avoid paying the association for that month if the tenant provides written evidence of payment. 18
  • 19.
    Unit Owner Delinquency Notice to Tenant continued… • The tenant must pay the association until released or until the tenant vacates the unit. • The tenant is not liable for more than the owner’s delinquency. • The association may evict the owner’s tenant for non- payment after the notice is delivered under Ch. 83, F.S. 19
  • 20.
    Termination Provision –Timeshare Condominium 718.117(2), F.S. • Amends § 718.117(2), F.S., to add sub-sub paragraph (c), stating a condominium that includes units and timeshare estates where the improvements have been totally destroyed or demolished, may be terminated by a plan of termination proposed by a “whole unit owner” upon filing a petition in court seeking equitable relief. • Within 10 days of filing the petition, the petitioner must record the proposed plan of termination and mail a copy of the proposed plan and petition to each member of the board of directors, if the association has not been dissolved, the managing entity, each unit owner, each timeshare estate owner, and each holder of a recorded mortgage lien affecting a unit or timeshare estate. 20
  • 21.
    Termination Provision –Timeshare Condominium continued… 718.117(2), F.S. • If the association has not been dissolved, any affected party may intervene in the proceedings to contest the proposed plan of termination. • If no party contests the proposed plan within 45 days of filing the petition, the petitioner may move the court to enter a final judgment to authorize the plan of termination be implemented. The plan will not be implemented until a final judgment is rendered. 21
  • 22.
    Condominium Termination andChange of Ownership 718.117(3),(4),(11), F.S. Amends § 718.117(3)(4) and (11), F.S., to clarify the condominium termination provision and allows a partial termination as long as the percentages of ownership changes are proportionate to what was terminated. For example, a condominium originally consisted of 100 units with each unit owner having a 1/100 share in the common elements has 50 of the 100 units destroyed by a storm, this change now allows the association to terminate the 50 as long as the ownership interests change to 1/50. This would not be a considered a § 718.110(4), F.S., amendment. 22
  • 23.
    Condominium Termination andChange of Ownership continued… • Trustee does not get title to surviving units, which remain in the owners’ names. • Proceeds from the partial termination are distributed based on the value of the terminated units and common elements. • Any liens are placed on the unit being terminated and sold. 23
  • 24.
    Termination and Changeof Ownership continued… • The terminated portion may be redeveloped as a condominium. • An amendment to the declaration is recorded for the surviving portion of the condominium to reflect the partial termination. 24
  • 25.
    Suspension of UseRights for Document or Rule Violation 718.303(3), F.S. Provides that the association may suspend for a reasonable period of time, the right of a unit owner or a unit owner’s tenant, guest, or invitee, to use the common elements, common facilities, or any other association property for failure to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association. 25
  • 26.
    Fine or Suspensionof Use Rights 718.303(3), F.S. • A fine or suspension may not be imposed except after giving at least 14 days’ written notice and an opportunity for a hearing to the unit owner and, if applicable, its occupant, licensee, or invitee. The hearing must be held before a committee of other unit owners who are neither board members nor persons residing in a board member’s household. • If the committee does not agree, the fine or suspension may not be imposed. 26
  • 27.
    Suspension of Useand Voting Rights More than 90 days delinquent Noticing Requirements • Amends § 718.303(3), F.S., to clarify the noticing procedures to be followed by the condominium association when suspending use and voting rights when an owner is more than 90 days delinquent in the payment of any monetary obligation. • Specifically, it provides that it must be approved at a properly noticed (48 hours) board meeting. • If approved, the board must notify the unit owner and, if applicable, the unit’s occupant, licensee, or invitee by mail or hand delivery. 27
  • 28.
    Change in Quorum 718.303(5), F.S. • The suspended voting interest or consent right may not be counted towards the total number of voting interests necessary to constitute a quorum, the number of voting interests required to conduct an election, or the number of voting interests required to approve an action under this chapter or pursuant to the declaration, articles of incorporation, or bylaws. - For example if there are 100 units in the association and 10 have lost their voting rights, the quorum requirement would now be based on 90 instead of 100. With 100 units the quorum requirement would be 51 units. For 90, it would be 46 units. • The suspension ends upon full payment of all obligations currently due or overdue the association. 28
  • 29.
    Bulk Assignee andBulk Buyer 718.703, F.S. Amends § 718.703, F.S., to redefine the terms “bulk assignee” and “bulk buyer”, to mean a person who acquires title to more than 7 units in a single condominium. Also adds some additional rewording of this section to clarify. 29
  • 30.
    Bulk Assignee andBulk Buyer continued… • A mortgagee or its assignee may not be deemed a bulk assignee or a developer by reason of the acquisition of condominium units and receipt of an assignment of some or all of a developer’s rights and therefore doesn’t have to file with the division. A mortgagee or its assignee may exercises the following developer rights without being a bulk assignee or developer: - Sales, leasing, and marketing activities within the condominium; - Exemption from the payment of working capital contributions to the condominium association arising out of, or in connection with, the bulk buyer’s acquisition of the units; and - Exemption from the association’s rights of first refusal if any, for subsequent transfers of title to a third party purchaser. 30
  • 31.
    Bulk Assignee Assignment of Developer Rights 718.704, F.S. • A bulk assignee (but not a mortgagee or its assignee, see previous slide), is deemed to have assumed and is liable for all duties and responsibilities of the developer under the declaration and this chapter upon its acquisition of title to the units and continuously thereafter, except that it is not liable for warranties of the developer under § 718.203(1) or § 718.618 (converter reserves) except those it assumes and gives in a prospectus or offering circular, or in its purchasers’ contracts. • If the bulk assignee agrees in the assignment, it is liable for the developer’s guarantee from the date of its title, but not liable if it did not accept the assignment of the guarantee. 31
  • 32.
    Bulk Assignee Assignmentof Developer Rights continued… • A bulk assignee can only take those developer rights of the entity it buys from; it can’t reach back to the original developer if the rights were not passed on to the interim buyer, mortgagee or court. If there has been a transfer to another person before the bulk assignee, then this interim assignment determines the extent of the bulk assignee’s assignment. • A copy of the assignment(s) is mandatory to determine what developer rights and liabilities the bulk assignee accepted. 32
  • 33.
    Bulk Assignee –Turnover 718.705, F.S. • Clarifies the provisions relating to turnover of control of the condominium from a “bulk assignee” to the unit owners. If the developer has not turned over control, then the bulk assignee’s units do not count toward the number of developer units conveyed to calculate the percentages for turnover under § 718.301, F.S. • If the bulk assignee turns over, then it must give the association the § 718.301(4), F.S. items unless it did not get these items from the developer. However, it must make a good faith effort to get the items from the developer and certify those documents it could not get to the association. 33
  • 34.
    Bulk Assignee andBulk Buyer – Offering Units 718.706, F.S. • Amends § 718.706, F.S., to revise the provisions pertaining to offering of units by a “bulk assignee” and “bulk buyer”. When the statute addresses the number of units offered for filing purposes, the bill adds offering more than 7 units in a single condominium as a minimum. • Exempts a “bulk assignee” or “bulk buyer” from filing if all of the units they own are offered and conveyed to a single purchaser in a single sale. 34
  • 35.
    Bulk Assignee andBulk Buyer – Time Limitation 718.707, F.S. Amends § 718.707, F.S., to clarify that a person acquiring condominium parcels may not be classified as a “bulk assignee” or “bulk buyer” unless the condominium parcels were acquired on or after July 1, 2010, but before July 1, 2012. 35
  • 36.
    Cooperative Changes Ch. 719 F.S. 36
  • 37.
    Unit Owner Delinquency Right to Collect from Tenant 719.108(10)(a), F.S. • The association must provide the tenant a statutory notice, by hand delivery or United States mail in a specific format when requesting rent. • After receiving the association’s notice, the tenant is not liable to the owner/landlord for any rent paid to the association instead of the owner. • The tenant’s payment to the association begins after receiving notice. If the tenant has already made a payment to the unit owner/landlord for the month the notice was received, the tenant may avoid paying the association for that month if the tenant provides written evidence of payment. 37
  • 38.
    Unit Owner Delinquency Notice to Tenant continued… • The tenant must pay the association until released or until the tenant vacates the unit. • The tenant is not liable for more than the owner’s delinquency. • The association may evict the owner’s tenant for non- payment after the notice is delivered under Ch. 83, F.S. 38
  • 39.
    Suspension of UseRights for Document Violations 719.303(3)(a), F.S. • Provides that the association may suspend for a “reasonable period of time”, the right of a unit owner or a unit owner’s tenant, guest, or invitee, to use the common elements, common facilities, or any other association property for failure to comply with any provision of the cooperative documents or reasonable rules of the association. “Reasonable period of time” is a question of fact in the specific circumstances and up to a judge. 39
  • 40.
    Fine or Suspensionof Rights 719.303(a), F.S. • A fine of not more than $100 per violation or a total of $1,000, or suspension of rights, may not be imposed except after giving reasonable notice (14 days) and opportunity for a hearing to the unit owner and if applicable, it’s occupant, licensee, or invitee. The hearing must be held before a committee of other unit owners. • If the committee does not agree with the fine or suspension, it may not be imposed. 40
  • 41.
    90 Day Delinquency Suspension of Use and Voting Rights Noticing Requirements 719.303(6), F.S. • Adds § 719.303(6), F.S., to clarify the noticing procedures to be followed by the cooperative association when suspending use and voting rights when an owner is more than 90 days delinquent in the payment of any monetary obligation. • Specifically, it provides that it must be approved at a properly noticed board meeting(48 hours). • If approved, the board must notify the unit owner and, if applicable, the unit’s occupant, licensee, or invitee by mail or hand delivery. 41
  • 42.
    Change in Quorum 719.303(5), F.S. Provides that a voting interest or consent right allocated to a unit or member who has been suspended by the cooperative association may not be counted towards the total numbers of voting interests necessary to constitute a quorum, the number of voting interests required to conduct an election, or the number of voting interests required to approve an action under this chapter or pursuant to the cooperative documents, articles of incorporation, or bylaws. For example if there are 100 units in the cooperative association and 10 have lost their voting rights, the quorum requirement would now be based on 90 instead of 100. With 100 units the quorum requirement would be 51 units. For 90, it would be 46 units. 42
  • 43.
    Customer Contact Center Foradditional information concerning the Condominium Act and to request copies of educational materials available to condominium unit owners you may contact the Department’s Customer Contact Center at Center at 1-800-226-9101 (Florida Only) or 850-488-1122. You may also e-mail the Department at call.center@dbpr.state.fl.us Statutes and other information concerning the division are available on the World Wide Web at www.myfloridalicense.com/dbpr/lsc/index.html 43