Senate Bill 398 and House Bill 1237 address condominium association legislative updates for 2017-18 related to estoppel certificates and conflicts of interest. SB 398 establishes requirements and fees for estoppel certificates, including a maximum 10-day response time and fees up to $250. HB 1237 prohibits certain conflicts of interest, such as board members contracting with the association or purchasing foreclosed units, and establishes disclosure procedures for potential conflicts.

1. Legislative Updates 2017-18
Division of Florida Condominiums, Timeshares
and Mobile Homes

2. Legislative Updates 2017-18
Senate Bill 398

3.  The bill amends 718.116(8) F.S., 719.108(6) F.S., relating to Estoppel
Letters for condominium and cooperative associations:
 An association has to respond to a request for an estoppel
certificate within 10 business days after receiving a request from a
unit or parcel owner, a unit or parcel mortgagee, or an owner's or
mortgagee's designee ;
 Requests may be made in either written or electronic format.
 The certificate must be provided by hand delivery, mail, or
electronic transmission to the requestor on the date the certificate
is issued.
Senate Bill 398

4.  Provides that an estoppel certificate must include the following information:
 Date of issuance;
 Name of the unit or parcel owner reflected in the books and records of the association;
 Unit or parcel designation and address;
 Parking or parking garage space number reflected in the books and records of the
association;
 Attorney's name and contact information if the account is delinquent and has been turned
over to the attorney for collection;
 Fee for the preparation and delivery of the estoppel certificate;
 Name of the requestor;
 Assessment amount, frequency of payment, the date through which the assessment is
paid, and the date upon which the next installment of the assessment is due;
 An itemized list of all assessments, special assessments, and other moneys owed on the
date of issuance of the certificate;
Senate Bill 398

5.  An itemized list of any additional assessments, special assessments, and other moneys
that are scheduled to become due for each day after the date of issuance for the effective
period of the estoppel certificate is provided. In calculating the amounts that are
scheduled to become due, the association may assume that any delinquent amounts will
remain delinquent during the effective period of the estoppel certificate;
 If there are capital contribution, resale, transfer, association application or other fees due
and the amount;
 Any open violations of the governing documents or rules and regulations noticed to the
unit or parcel owner in the association official records;
 If the rules and regulations of the association applicable to the unit require approval by
the board of directors of the association for the transfer of the unit;
 A list of, and contact information for, all other associations of which the unit is a member;
 Contact information for all insurance maintained by the association; and
 The signature of an officer or authorized agent of the association.
Senate Bill 398

6.  An estoppel certificate hand delivered or sent by electronic means have a 30-day effective
period. Certificate Delivered by regular mail have a 35-day effective period.
 If additional information becomes available or a mistake is discovered regarding the
certificate, an amended certificate may be delivered.
 The amended certificate becomes effective if the sale or mortgage has not been
completed.
 A fee may not be charged for the amended certificate and the amended certificate
restarts the effective period upon delivery.
 Providing that an association waives the right to collect moneys owed in excess of those
stated in the estoppel certificate;
 Establishing the maximum fee that an association may charge for the issuance of an
estoppel certificate is $250 if there are no delinquent fees owed by the applicable unit or
parcel on the date the certificate was issued.
 If a certificate is requested on an expedited basis and delivered within 3 business days, the
association may charge an additional fee of $100.
 If a delinquent fee is owed to the association, an additional fee not to exceed $150 may be
added to the estoppel certificate.
Senate Bill 398

7.  if an association does not provide the certificate within 10 business days of a
proper request, a fee may not be charged for the preparation or delivery of
the estoppel certificate.
 Fees will be adjusted in the future based on the CPI (Consumer Price Index);
 The bill provides a schedule of maximum aggregate fees if an owner of
multiple units or parcels asks for estoppel certificates. The schedule only
applies if there are no past due monetary obligations on any of the units or
parcels and the certificates are requested simultaneously. In the aggregate,
the fees may not exceed:
 For 25 or fewer units or parcels, $750.
 For 26 to 50 units or parcels, $1,000.
 For 51 to 100 units or parcels, $1,500.
 For more than 100 units or parcels, $2,500.
Senate Bill 398

8.  The bill provides that a written resolution by the board or provided by a written
management, bookkeeping, or maintenance contract is required to charge a fee
for the preparation and delivery of the certificate.
 The fee is payable at the time the certificate is ordered. If the fee is to be paid in
conjunction with the sale or mortgage of a unit but closing does not occur, the
fee must be refunded to a payor other than the unit owner.
 The payor must make the request within 30 days after the closing date for which
the certificate was sought and must be in written format accompanied by
reasonable documentation that the closing sale did not occur.
 The fee must be refunded within 30 days of receiving the request for refund. The
refund is the obligation of the unit owner and the association may collect the fee
from the unit owner in the same manner as an assessment against the unit.
 In any action brought to enforce a right of reimbursement, the prevailing party
will be awarded damages and attorney fees and costs.
 The bill provides that the right to a refund may not be waived or modified by any
contract or agreement.
Senate Bill 398

9. Legislative Updates 2017-18
House Bill 1237

10.  Creates s. 718.111(3), F.S., providing that an attorney may not represent the board if
the attorney also represents the management company of the association.
 Amends s. 718.111(9), F.S., to prohibit a board member, manager or management
company from purchasing a unit at a foreclosure sale resulting from the association's
foreclosure on its lien for unpaid assessments or taking title by deed in lieu of
foreclosure. Timeshare condominiums are exempted from this provision.
 Creates s. 718.112(2)(p), F.S., prohibiting an association from employing or contracting
with any service provider that is owned or operated by a board member, any person
that has a financial relationship with a board member, or a relative within the third
degree of consanguinity by blood or marriage of a board member or officer. This
restriction does not apply to a service provider in which a board member or officer, or
relative within the third degree of consanguinity by blood or marriage of the board
member or officer, owns less than 1 percent of the equity shares of the service
provider. Timeshare condominiums are exempted from this provision
House Bill 1237
Conflicts of Interest

11.  Creates s. 718.3025(5), F.S., prohibiting a party contracting to provide maintenance or management
services to an association, or a board member of such a party, purchasing a property subject to a lien
by the association. If a party contracting to provide maintenance or management services to an
association, or a board member of such a party, owns 50 percent or more of the units in the
condominium, the contract with the party providing maintenance or management services may be
cancelled by a majority vote of the unit owners other than the contracting party or officer or board
member of such party. Timeshare condominiums are exempted from this provision. Timeshare
condominiums are exempted from this provision
 Creates s. 718.3027, F.S., providing procedures for noticing potential conflicts of interest. The bill
provides that an officer or director of an association, and their relatives, must disclose to the board
any activity that may be construed as a conflict of interest. A rebuttable presumption of a conflict of
interest exists if, without prior notice:
 Any director, officer, or relative of a director or officer enters into a contract for goods or services
with the association; or
 Any director, officer, or relative holds an interest in a corporation, limited liability corporation,
partnership, limited liability partnership, or other business entity that conducts business with the
association or proposes to enter into a contract with the association. Timeshare condominiums are
exempted from this provision
House Bill 1237
Conflicts of Interest

12.  If a director, officer, or relative of a director or officer proposes to engage in
an activity that is a conflict of interest, the proposed activity must be listed
on the meeting agenda and all contracts and transactional documents for
the proposed activity must attached to the meeting agenda. The board must
provide all these documents to the unit owners as well. The interested
director or officer may attend the meeting at which the contract is
considered and may make a presentation to the board regarding the activity.
After the presentation, the director, officer, or relative must leave the room.
Any director or officer who has an interest in the contract must recuse
himself or herself from the vote.
 If the board rejects the proposed contract, the director, officer, or relative
must notify the board in writing of his or her intent not to pursue the
contract further or the director or officer must withdraw from office.
House Bill 1237
Conflicts of Interest

13.  If the board finds that a director or officer has not notified it of
his or her intent to pursue the contract further, the officer or
director is deemed removed from office, and the vacancy must
be filled according to general law.
 Any contract entered into between any director, officer, or
relative that is not properly noticed before consideration is
voidable. The contract is terminated upon the filing of a written
notice terminating the contract with the board of directors
which contains the consent of at least 20 percent of the voting
interests of the association.
House Bill 1237
Conflicts of Interest

14.  Adds bids for materials, equipment, or services to the
list of official records of the association.
 That the reasonable expenses in copying an
association's official books and records may be owed
by the member's authorized representative.
 Authorizes the tenant of an association member's unit
to inspect and copy the bylaws and rules of an
association.
House Bill 1237
Official Records

15.  The bill requires an association with 150 or more
units that does not manage timeshare units to
provide certain documents on the association's
website.
 The website must be independently owned and
operated by the association or operated by a third-
party provider with whom the association has the
right to operate a web page dedicated to the
association's activities, notices, and records.
House Bill 1237
Official Records

16.  The association must provide an owner, upon request, with a
username and password to the protected sections of the
association's website that contain any notices, records, or documents
that must be electronically provided.
 An association must ensure that information and records that
members are not permitted to access are not placed on its website. If
protected information is included in documents that are required to
be placed on the website, the association must redact such
information before placing the documents online.
 In order to implement the website requirement, DBPR must include in
its next condominium association annual fee statement a notice
informing condominium associations of 150 or more units of the
requirement to create a website for association documents that is
operational no later than July 1, 2018.
House Bill 1237
Official Records

17.  The following documents must be placed on the website:
 The recorded declaration, bylaws and article of incorporation and each
amendment thereto;
 The rules of the association;
 Any management agreement, lease, or other contract to which the
association is party.
 Summaries of bids for materials, equipment, or services must be maintained
on the website for 1 year;
 The annual budget and any proposed budget to be considered at the annual
meeting;
 The financial report and any proposed financial report to be considered at a
meeting;
House Bill 1237
Official Records

18.  The certification of each director;
 All contracts or transactions between the association and any
director, corporation, firm, or association that is not an affiliated
condominium association;
 Any contract or document regarding a conflict of interest or possible
conflict of interest;
 The notice of any unit owner meeting and the agenda for the
meeting, posted at least 14 days before the meeting. The notice must
be posted in plain view on the front page of the website or on a
separate subpage of the website labeled "Notices" which is
conspicuously visible and linked from the front page; and
 Any documents to be considered during a meeting or listed on the
agenda for a meeting. These must be posted at least 7 days before
the meeting where the document will be considered.
House Bill 1237
Official Records

19.  Amends s. 718.111(13), F.S., to specify that that the association must provide the unit owner with
the most recent financial report within 5 business days after the receipt of a written request for
the report by a member.
 The bill provides that a unit owner may contact the division to report an association's failure to
provide a copy of the financial report. Upon determination by the division that the association
has failed to provide the financial report in a timely manner, the division is required to give
notice to the association that it must provide a copy of the most recent financial report to the
unit owner and the division within 5 business days.
 If the association fails to comply with the division's request, the association may not waive the
financial reporting requirement as provided in s. 718.111(13)(d), F.S.
 A financial report received by the division must be maintained and a copy provided to an
association member upon request.
 Creates s. 718.71, F.S., requiring an association to provide an annual report to DBPR containing
the names of all the financial institutions with which the association maintains accounts.
 A copy of this report may be obtained by any association member upon written request.
House Bill 1237
Financial Reporting

20.  Amends s. 718.112(2)(d)2., F.S., to provide that a board
member may not serve more than 4 consecutive 2-year
terms. Timeshare condominiums are exempted from
this provision.
 A board member may have this term limit waived by
the affirmative vote of two-thirds of the total voting
interests of the association.
 The term limit may also be waived if there are not
enough eligible candidates to fill the vacancies on the
board at the time of the vacancies.
House Bill 1237
Term Limits for
board members

21.  Amends s. 718.112(2)(j), F.S., The bill deletes the certification process
for the association board of directors. Upon vote of a general
membership meeting or serving of a copy of an agreement in writing
by a majority of all voting interests, a board member is recalled from
the member's seat.
 The recalled board member must return all property and records of
the association in the board member's possession within 10 business
days after the vote or serving of the agreement.
 The bill also deletes the arbitration provision in s. 718.112(2)(j)3., F.S.,
since a board of directors may no longer choose not to certify a recall
vote or agreement.
 The bill also removes other references to the certification process
from s. 718.112(2)(j), F.S., and corrects cross references changed by
the removal of s. 718.112(2)(j)3., F.S.
House Bill 1237
Board Member Recall

22.  Amends s. 718.111(1), F.S., An officer, director, or manager of a condominium
association may not accept a kickback from any person providing or proposing to
provide goods or services to the association.
 Provides for criminal penalties, if applicable, for accepting any kickbacks.
 Certain activities are punishable as crimes:
 Forgery of a ballot envelope used in a condominium association election or voting
certificate is punishable as forgery pursuant to s. 831.01, F.S.,(Forgery &
counterfeiting).
 Theft or embezzlement of the funds of a condominium association are punishable as
theft pursuant to s. 812.014, F.S.,(Theft, Robbery & Related Crimes).
 Destruction of any official record of a condominium association in furtherance of a
crime is punishable as tampering with evidence pursuant to s. 918.13, F.S.,(Criminal
Procedure & Correction) or as obstruction of justice pursuant to s. 843.02, F.S.,
(Obstructing Justice).
House Bill 1237
Penalties for Activities Related
to Condominium Associations

23.  Any officer or director charged by information or indictment
with one of these crimes must be removed from office and the
vacancy filled for the remainder of the term or suspension for
criminal charges by the election of a new officer or director.
 An officer or director may not be appointed or elected to a
position as an officer or director of any association while a
criminal charge is pending against that officer or director. If the
charges are resolved without a finding of guilt, the officer or
director must be reinstated for the remainder of his or her term
of office, if any.
House Bill 1237
Penalties for Activities Related
to Condominium Associations

24.  Amends s. 718.1255(4), F.S., to authorize DBPR to certify attorneys as arbitrators who DBPR may
contract with for an arbitration hearing. Certification by the Department requires that an
attorney:
 Be a member in good standing with the Florida Bar for at least 5 years; and
 Have mediated or arbitrated at least 10 disputes involving condominiums in Florida during the 3
years immediately preceding the date of application for certification; or
 Have mediated or arbitrated at least 30 disputes in any subject area in Florida during the 3 years
immediately preceding the date of application; or
 Attain board certification in real estate law or condominium and planned development law from
the Florida Bar
 Arbitrator certification is good for 1 year. An arbitrator who does not maintain the minimum
qualifications for initial certification may not have his or her certification renewed.
 The Department must contract with a certified arbitrator for an arbitration hearing unless there
is no certified arbitrator available within 50 miles of the arbitration hearing.
House Bill 1237
Arbitration &
Mediation Dispute

25.  Amends s. 718.303(5), F.S., to provide that an association may
suspend the voting rights of a unit owner or member due to
nonpayment of any fee, fine, or other monetary obligation due
to the association only if the obligation is 90 days delinquent
and totals more than $1000.
 The association must provide proof of such obligation to the
unit owner or member 30 days before the suspension takes
effect.
 Creates s. 718.303(8), F.S., providing that a receiver may not
exercise voting rights of any unit owner whose unit is placed in
receivership for the benefit of the association.
House Bill 1237
Rights & obligations of
Owners & Occupants

26.  Amends s. 718.5012(5), F.S., allowing an election monitor
appointed by the ombudsman to review secret ballots cast
at a vote of the association.
 Creates 718.71, F.S., Financial Reporting. This section
requires an association with a bulk assignee or bulk buyer
to report annually to the department the names of all of
the financial institutions with which it maintains accounts.
The amendment also provides that a copy of this report
may be obtained from the division by an association
member upon written request.
House Bill 1237

27.  Prohibits an association, or any officer, director, employee,
or agent of an association from using a debit card issued in
the name of the association, or which is billed directly to
the association, for the payment of any expense that the
association incurs.
 The use of a debit card issued in the name of the
association or billed directly to the association for any
expense that is not a lawful obligation of the association is
punishable as credit card fraud pursuant to s. 817.61,
F.S(Fraudulent Practices).
House Bill 2017
Debit Card

28. Legislative Updates 2017-18
House Bill 6027

29. Financial Reporting:
 Removes the provisions that associations operating
fewer than 50 units or parcels may or must prepare a
report of cash receipts and expenditures in lieu of a
financial statement regardless of the associations’ total
annual revenue.
 The bill removes the provision that prohibits
cooperatives and condominiums from waiving the
annual financial reporting requirements for more than
three consecutive years.
House Bill 6027
Condo and Co-op

30. Legislative Updates 2017-18
Senate Bill 1520

31.  Requires that at least 80% of the total voting interest of a
condominium vote for termination.
 Prohibits a termination plan from proceeding if it is rejected by
5 percent of the condominium’s voting interests.
 If 5 percent or more of the voting interests of a condominium
reject a plan of termination, a subsequent plan may not be
considered for 24 months.
 Extends the time between the date that a condominium is
created by conversion and the date that the condominium
association may vote for optional termination to 10 years.
Senate Bill 1520
Optional Termination
of Condominium

32.  Compared to other condominium terminations, current law places more
restrictions on the termination of a condominium if a bulk owner owns at
least 80 percent of the condominium’s total voting interests.
 As under current law, each unit owner other than the bulk owner must be
compensated at least 100 percent of the fair market value of his or her unit.
Additionally, current law requires that a unit owner receive at least the
original purchase price paid for his or her unit if he or she:
 Was an original purchaser;
 Rejected the plan of termination; and
 Received a homestead exemption on the unit.
 The bill, in contrast, requires only that a person’s unit have been granted
homestead-exemption status for the person to be guaranteed this amount
of compensation.
Senate Bill 1520
Optional Termination
of Condominium

33.  Broadens the requirement to disclose to the unit owners anyone who owns a
significant portion of the condominium before a plan of termination is presented.
 Specifically, the plan must include written, sworn disclosures of the identity of any
person or entity that owns or controls at least 25 percent of the condominium units.
Moreover, if it is an artificial entity that owns at least 25 percent of the units, then the
following must also be disclosed in the same manner:
 The natural person or persons who directly or indirectly manage or control the
artificial entity or entities; and
 The natural person or persons who directly or indirectly own or control 10 percent or
more of the artificial entity or entities that constitute the bulk owner.
 Lastly, the written and sworn disclosure must also include the factual circumstances
that show that the plan complies with the requirements of s. 718.117, F.S.
Senate Bill 1520
Optional Termination
of Condominium

34.  Division Approval:
 The bill requires a condominium association that
approves a plan for optional termination to submit the
plan to the Division for review. The Division may
authorize the termination to proceed after it
determines that the plan complies with the procedural
requirements set forth in s. 718.117, F.S., the statute
amended by the bill.
Senate Bill 1520
Optional Termination
of Condominium

35.  For additional information concerning the Condominium or
Cooperative Acts and to request copies of educational materials
available to condominium and cooperative unit owners, you may
contact the Department’s Customer Contact Center at 1-800-226-
9101 (Florida Only) or 850-488-1122.
 You may also contact the Department by completing our contact
form online at http://www.myfloridalicense.com/contactus/
 Statutes and other information concerning the division are
available on the World Wide Web at
www.myfloridalicense.com/dbpr/lsc/index.html
Customer Contact Center