2011 Legislative Updates

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1 2011 Legislative Update Chapter 2011 - 196 Effective July 1, 2011 BACK TO MENU

Transcript of 2011 Legislative Updates

Page 1: 2011 Legislative Updates

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2011 Legislative Update Chapter

2011 - 196Effective July 1, 2011

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Condominium Manual Fire Alarm System Condominium Manual Fire Alarm System 633.0215, F.S.633.0215, F.S.

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

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Access and Maintenance of Association Access and Maintenance of Association Records Records

718.111(12)(a),(c), F.S.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.

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

Additional records not accessible to unit owners:Additional records not accessible to unit owners:

• Personnel records of association employees, Personnel records of association employees, and of the and of the management companymanagement company,, including, but not limited to, including, but not limited to, disciplinary, payroll, health and insurance records.disciplinary, payroll, health and insurance records.

• However, it now provides that unit owners may However, it now provides that unit owners may access written employment agreements with an access written employment agreements with an association employee or management company, or association employee or management company, or budgetary or financial records that indicate the budgetary or financial records that indicate the compensation paid to an association employee. compensation paid to an association employee.

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What Unit Owner Records are Accessible?What Unit Owner Records are Accessible? Unit owners are now only allowed access to a unit owner’s Unit owners are now only allowed access to a unit owner’s

name, unit number, mailing address and property name, unit number, mailing address and property address. address.

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

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Association Records – LiabilityAssociation Records – Liability718.111(12)(c)5., F.S.718.111(12)(c)5., F.S.

The association is not liable for the inadvertent disclosure The association is not liable for the inadvertent disclosure of information that is protected under this section if the of information that is protected under this section if the information is included in an official record of the information is included in an official record of the association and is association and is voluntarily provided by an ownervoluntarily provided by an owner and not requested by the association. and not requested by the association.

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Board of Directors MeetingsBoard of Directors Meetings718.112, F.S.718.112, F.S.

Amends § 718.112(2)(c)3.b., F.S., to allow condominium Amends § 718.112(2)(c)3.b., F.S., to allow condominium association boards the right to hold closed meetings to association boards the right to hold closed meetings to discuss personnel matters. discuss personnel matters.

Note: Personnel are employees of the association Note: Personnel are employees of the association and not independent contractors.and not independent contractors.

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Candidates for the BoardCandidates for the Board718.112(2)(d)2., F.S.718.112(2)(d)2., F.S.

Defines the term “Defines the term “CandidateCandidate” as an eligible person who ” as an eligible person who has timely submitted their written notice of intent to has timely submitted their written notice of intent to become a candidate. become a candidate.

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

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Candidates for the BoardCandidates for the Boardcontinued…continued…

Any unit owner or other eligible person desiring to be a Any unit owner or other eligible person desiring to be a candidate for board membership must give written notice candidate for board membership must give written notice of their intent to be a candidate to the association at of their intent to be a candidate to the association at least 40 days before the scheduled election and least 40 days before the scheduled election and must must be eligible to serve on the board of directors at the be eligible to serve on the board of directors at the time of the deadline for submitting a notice of intent time of the deadline for submitting a notice of intent to runto run. Therefore:. Therefore:

• An incumbent board member is eligible for re-election An incumbent board member is eligible for re-election unless the bylaws prohibit it.unless the bylaws prohibit it.

• A person who has been suspended or removed by A person who has been suspended or removed by the division under this chapter, or who is more than the division under this chapter, or who is more than 90 days delinquent in the payment of any fee, fine, or 90 days delinquent in the payment of any fee, fine, or special or regular assessment, is not eligible for board special or regular assessment, is not eligible for board membership.membership.

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Candidates for the BoardCandidates for the Boardcontinued…continued…

• In a association of more than 10 units, co-owners of a In a association of more than 10 units, co-owners of a unit may not serve on the board at the same time unit may not serve on the board at the same time unless unless theythey own more than one unit own more than one unit or there are not or there are not enough eligible candidates to fill the vacancies on the enough eligible candidates to fill the vacancies on the board at the time of the election.board at the time of the election.

• A convicted felon who has not had their civil rights A convicted felon who has not had their civil rights completely restored for more than 5 years in not completely restored for more than 5 years in not eligibleeligible for board membership.for board membership.

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Candidates for the BoardCandidates for the Boardcontinued…continued…

• If the number of board members whose terms expire at If the number of board members whose terms expire at the annual meeting equals or exceeds the number of the annual meeting equals or exceeds the number of candidates, the candidates become members of the candidates, the candidates become members of the board effective upon the adjournment of the annual board effective upon the adjournment of the annual meeting. meeting. (Formerly they were eligible to be (Formerly they were eligible to be reappointed but were not automatically back on the reappointed but were not automatically back on the board.)board.)

• Unless otherwise provided in the bylaws, any remaining Unless otherwise provided in the bylaws, any remaining vacancies vacancies shall be filled by the affirmativeshall be filled by the affirmative vote of the vote of the majority of the directors making up the new board even if majority of the directors making up the new board even if there are less than a quorum or even 1 director. (This there are less than a quorum or even 1 director. (This would be an appointment.) would be an appointment.)

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ElectionsElections718.112(2)(d)4., F.S.718.112(2)(d)4., F.S.

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

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Board Member CertificationBoard Member Certification718.112(2)(d)4,b., F.S.718.112(2)(d)4,b., F.S.

• Newly elected or appointed board member may submit a Newly elected or appointed board member may submit a certificate of satisfactory completion of educational certificate of satisfactory completion of educational curriculum administered by a division-approved curriculum administered by a division-approved condominium provider condominium provider which was either taken 1 year which was either taken 1 year before the electionbefore the election or 90 days after being elected or or 90 days after being elected or appointed.appointed.

• The certification is valid and does not have to be The certification is valid and does not have to be resubmitted as long resubmitted as long as the director continuously serves as the director continuously serves on the board. on the board.

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Hurricane ProtectionHurricane Protection718.113(5)(a),F.S.718.113(5)(a),F.S.

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

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Agreements, Leaseholds and MembershipsAgreements, Leaseholds and Memberships718.114, F.S.718.114, F.S.

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

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Association ForeclosureAssociation Foreclosure718.116(2), F.S.718.116(2), F.S.

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

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Unit Owner DelinquencyUnit Owner DelinquencyRight to Collect from Tenant Right to Collect from Tenant

718.116(11), F.S.718.116(11), F.S.

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

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Unit Owner Delinquency Unit Owner Delinquency Notice to TenantNotice to Tenant718.116(11), F.S.718.116(11), F.S.

• The association must provide the tenant a statutory The association must provide the tenant a statutory notice, by hand delivery or United States mail in a notice, by hand delivery or United States mail in a specific format when requesting rent.specific format when requesting rent.

• After receiving the association’s notice, the tenant is not After receiving the association’s notice, the tenant is not liable to the owner/landlord for any rent paid to the liable to the owner/landlord for any rent paid to the association instead of the owner.association instead of the owner.

• The tenant’s payment to the association begins after The tenant’s payment to the association begins after receiving notice. If the tenant has already made a receiving notice. If the tenant has already made a payment to the unit owner/landlord for the month the payment to the unit owner/landlord for the month the notice was received, the tenant may avoid paying the notice was received, the tenant may avoid paying the association for that month if the tenant provides written association for that month if the tenant provides written evidence of payment.evidence of payment.

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Unit Owner Delinquency Unit Owner Delinquency Notice to Tenant continued…Notice to Tenant continued…

• The tenant must pay the association until released or The tenant must pay the association until released or until the tenant vacates the unit.until the tenant vacates the unit.

• The tenant is not liable for more than the owner’s The tenant is not liable for more than the owner’s delinquency.delinquency.

• The association may evict the owner’s tenant for non-The association may evict the owner’s tenant for non-payment after the notice is delivered under Ch. 83, F.S.payment after the notice is delivered under Ch. 83, F.S.

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Termination Provision – Timeshare Termination Provision – Timeshare CondominiumCondominium

718.117(2), F.S.718.117(2), F.S.

• Amends § 718.117(2), F.S., to add sub-sub paragraph Amends § 718.117(2), F.S., to add sub-sub paragraph (c), stating a condominium that includes units and (c), stating a condominium that includes units and timeshare estates where the improvements have been timeshare estates where the improvements have been totally destroyed or demolished, may be terminated by a totally destroyed or demolished, may be terminated by a plan of termination proposed by a “plan of termination proposed by a “whole unit ownerwhole unit owner” ” upon filing a petition in court seeking equitable relief.upon filing a petition in court seeking equitable relief.

• Within 10 days of filing the petition, the petitioner must Within 10 days of filing the petition, the petitioner must record the proposed plan of termination and mail a copy record the proposed plan of termination and mail a copy of the proposed plan and petition to each member of the of the proposed plan and petition to each member of the board of directors, if the association has not been board of directors, if the association has not been dissolved, the managing entity, each unit owner, each dissolved, the managing entity, each unit owner, each timeshare estate owner, and each holder of a recorded timeshare estate owner, and each holder of a recorded mortgage lien affecting a unit or timeshare estate. mortgage lien affecting a unit or timeshare estate.

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Termination Provision – Timeshare Termination Provision – Timeshare Condominium continued…Condominium continued…

718.117(2), F.S.718.117(2), F.S.

• If the association has not been dissolved, any affected If the association has not been dissolved, any affected party may intervene in the proceedings to contest the party may intervene in the proceedings to contest the proposed plan of termination.proposed plan of termination.

• If no party contests the proposed plan within 45 days of If no party contests the proposed plan within 45 days of filing the petition, the petitioner may move the court to filing the petition, the petitioner may move the court to enter a final judgment to authorize the plan of enter a final judgment to authorize the plan of termination be implemented. The plan will not be termination be implemented. The plan will not be implemented until a final judgment is rendered. implemented until a final judgment is rendered.

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Condominium Termination and Change of Condominium Termination and Change of OwnershipOwnership

718.117(3),(4),(11), F.S.718.117(3),(4),(11), F.S.Amends § 718.117(3)(4) and (11), F.S., to clarify the Amends § 718.117(3)(4) and (11), F.S., to clarify the

condominium termination provision and allows a partial condominium termination provision and allows a partial termination as long as the percentages of ownership termination as long as the percentages of ownership changes are proportionate to what was terminated.changes are proportionate to what was terminated.

For example, a condominium originally consisted of 100 For example, a condominium originally consisted of 100 units with each unit owner having a 1/100 share in the units with each unit owner having a 1/100 share in the common elements has 50 of the 100 units destroyed common elements has 50 of the 100 units destroyed by a storm, this change now allows the association to by a storm, this change now allows the association to terminate the 50 as long as the ownership interests terminate the 50 as long as the ownership interests change to 1/50. This would not be a considered a § change to 1/50. This would not be a considered a § 718.110(4), F.S., amendment. 718.110(4), F.S., amendment.

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Condominium Termination and Change of Condominium Termination and Change of Ownership continued…Ownership continued…

• Trustee does not get title to surviving units, which Trustee does not get title to surviving units, which remain in the owners’ names.remain in the owners’ names.

• Proceeds from the partial termination are distributed Proceeds from the partial termination are distributed based on the value of the terminated units and based on the value of the terminated units and common elements.common elements.

• Any liens are placed on the unit being terminated and Any liens are placed on the unit being terminated and sold.sold.

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Termination and Change of OwnershipTermination and Change of Ownershipcontinued…continued…

• The terminated portion may be redeveloped as a The terminated portion may be redeveloped as a condominium.condominium.

• An amendment to the declaration is recorded for the An amendment to the declaration is recorded for the surviving portion of the condominium to reflect the partial surviving portion of the condominium to reflect the partial termination.termination.

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Suspension of Use RightsSuspension of Use Rightsfor Document or Rule Violationfor Document or Rule Violation

718.303(3), F.S.718.303(3), F.S.

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

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Fine or Suspension of Use RightsFine or Suspension of Use Rights718.303(3), F.S.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.

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Suspension of Use and Voting RightsSuspension of Use and Voting RightsMore than 90 days delinquentMore than 90 days delinquent

Noticing RequirementsNoticing Requirements

• Amends § 718.303(3), F.S., to clarify the noticing Amends § 718.303(3), F.S., to clarify the noticing procedures to be followed by the condominium procedures to be followed by the condominium association when suspending use and voting rights when association when suspending use and voting rights when an owner is an owner is more than 90 days delinquentmore than 90 days delinquent in the in the payment of any monetary obligation.payment of any monetary obligation.

• Specifically, it provides that it Specifically, it provides that it must be approved at a must be approved at a properly noticed (48 hours) board meeting.properly noticed (48 hours) board meeting.

• If approved, the board must notify the unit owner and, if If approved, the board must notify the unit owner and, if applicable, the unit’s occupant, licensee, or invitee by applicable, the unit’s occupant, licensee, or invitee by mail or hand delivery. mail or hand delivery.

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Change in QuorumChange in Quorum718.303(5), F.S.718.303(5), F.S.

• The suspended voting interest or consent right may not be The suspended voting interest or consent right may not be counted towards the total number of voting interests counted towards the total number of voting interests necessary to constitute a quorum, the number of voting necessary to constitute a quorum, the number of voting interests required to conduct an election, or the number of interests required to conduct an election, or the number of voting interests required to approve an action under this voting interests required to approve an action under this chapter or pursuant to the declaration, articles of chapter or pursuant to the declaration, articles of incorporation, or bylawsincorporation, or bylaws..

- For example if there are 100 units in the association For example if there are 100 units in the association and 10 have lost their voting rights, the quorum and 10 have lost their voting rights, the quorum requirement would now be based on 90 instead of 100. requirement would now be based on 90 instead of 100. With 100 units the quorum requirement would be 51 With 100 units the quorum requirement would be 51 units. For 90, it would be 46 units.units. For 90, it would be 46 units.

• The suspension ends upon full payment of all obligations The suspension ends upon full payment of all obligations currently due or overdue the association.currently due or overdue the association.

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Bulk Assignee and Bulk Buyer Bulk Assignee and Bulk Buyer 718.703, F.S.718.703, F.S.

Amends § 718.703, F.S., to redefine the terms “bulk Amends § 718.703, F.S., to redefine the terms “bulk assignee” and “bulk buyer”, to mean a person who assignee” and “bulk buyer”, to mean a person who acquires title to more than 7 units in a single acquires title to more than 7 units in a single condominium. Also adds some additional rewording of condominium. Also adds some additional rewording of this section to clarify. this section to clarify.

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Bulk Assignee and Bulk Buyer Bulk Assignee and Bulk Buyer continued…continued…

• A A mortgagee or its assignee may notmortgagee or its assignee may not be deemed a bulk assignee be deemed a bulk assignee or a developer by reason of the acquisition of condominium units 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 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 and therefore doesn’t have to file with the division. A mortgagee or its assignee may exercises the following developer rights without its assignee may exercises the following developer rights without being a bulk assignee or developer:being a bulk assignee or developer:

- Sales, leasing, and marketing activities within the condominium;Sales, leasing, and marketing activities within the condominium;- Exemption from the payment of working capital contributions to Exemption from the payment of working capital contributions to

the condominium association arising out of, or in connection the condominium association arising out of, or in connection with, the bulk buyer’s acquisition of the units; andwith, the bulk buyer’s acquisition of the units; and

- Exemption from the association’s rights of first refusal if any, for Exemption from the association’s rights of first refusal if any, for subsequent transfers of title to a third party purchaser. subsequent transfers of title to a third party purchaser.

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Bulk Assignee Bulk Assignee Assignment of Developer RightsAssignment of Developer Rights

718.704, F.S. 718.704, F.S. • A bulk assignee (but not a mortgagee or its assignee, see A bulk assignee (but not a mortgagee or its assignee, see

previous slide), is deemed to have assumed and is liable for previous slide), is deemed to have assumed and is liable for all duties and responsibilities of the developer under the all duties and responsibilities of the developer under the declaration and this chapter upon its acquisition of title to the declaration and this chapter upon its acquisition of title to the units and continuously thereafter, except that it units and continuously thereafter, except that it is notis not liable for liable for warranties of the developer under §warranties of the developer under § 718.203(1) or § 718.618 718.203(1) or § 718.618 (converter reserves) (converter reserves) exceptexcept those it assumes and gives in a those it assumes and gives in a prospectus or offering circular, or in its purchasers’ contracts.prospectus or offering circular, or in its purchasers’ contracts.

• If the bulk assignee agrees in the assignment, it is liable for If the bulk assignee agrees in the assignment, it is liable for the developer’s guarantee from the date of its title, but not the developer’s guarantee from the date of its title, but not liable if it did not accept the assignment of the guarantee.liable if it did not accept the assignment of the guarantee.

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Bulk Assignee Assignment of DeveloperBulk Assignee Assignment of DeveloperRights continued…Rights continued…

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

• A copy of the assignment(s) is mandatory to determine A copy of the assignment(s) is mandatory to determine what developer rights and liabilities the bulk assignee what developer rights and liabilities the bulk assignee accepted.accepted.

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Bulk Assignee – Turnover Bulk Assignee – Turnover 718.705, F.S.718.705, F.S.

• Clarifies the provisions relating to turnover of control of Clarifies the provisions relating to turnover of control of the condominium from a “bulk assignee” to the unit the condominium from a “bulk assignee” to the unit owners. If the developer has not turned over control, then owners. If the developer has not turned over control, then the bulk assignee’s units do not count toward the number the bulk assignee’s units do not count toward the number of developer units conveyed to calculate the percentages of developer units conveyed to calculate the percentages for turnover under § 718.301, F.S.for turnover under § 718.301, F.S.

• If the bulk assignee turns over, then it must give the If the bulk assignee turns over, then it must give the association the § 718.301(4), F.S. items unless it did not association the § 718.301(4), F.S. items unless it did not get these items from the developer. However, it must get these items from the developer. However, it must make a good faith effort to get the items from the make a good faith effort to get the items from the developer and certify those documents it could not get to developer and certify those documents it could not get to the association.the association.

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Bulk Assignee and Bulk Buyer – Offering Bulk Assignee and Bulk Buyer – Offering Units Units

718.706, F.S.718.706, F.S. • Amends § 718.706, F.S., to revise the provisions Amends § 718.706, F.S., to revise the provisions

pertaining to offering of units by a “bulk assignee” and pertaining to offering of units by a “bulk assignee” and “bulk buyer”. When the statute addresses the number of “bulk buyer”. When the statute addresses the number of units offered for filing purposes, the bill adds offering units offered for filing purposes, the bill adds offering more than 7 units in a single condominium as a more than 7 units in a single condominium as a minimum.minimum.

• Exempts a “bulk assignee” or “bulk buyer” from filing if all Exempts a “bulk assignee” or “bulk buyer” from filing if all of the units they own are offered and conveyed to a of the units they own are offered and conveyed to a single purchaser in a single sale.single purchaser in a single sale.

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Bulk Assignee and Bulk Buyer – Time Bulk Assignee and Bulk Buyer – Time LimitationLimitation

718.707, F.S.718.707, F.S.

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

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Cooperative ChangesCooperative ChangesCh. 719 F.S.Ch. 719 F.S.

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Unit Owner DelinquencyUnit Owner DelinquencyRight to Collect from TenantRight to Collect from Tenant

719.108(10)(a), F.S.719.108(10)(a), F.S.• The association must provide the tenant a statutory The association must provide the tenant a statutory

notice, by hand delivery or United States mail in a notice, by hand delivery or United States mail in a specific format when requesting rent.specific format when requesting rent.

• After receiving the association’s notice, the tenant is After receiving the association’s notice, the tenant is not liable to the owner/landlord for any rent paid to the not liable to the owner/landlord for any rent paid to the association instead of the owner.association instead of the owner.

• The tenant’s payment to the association begins after The tenant’s payment to the association begins after receiving notice. If the tenant has already made a receiving notice. If the tenant has already made a payment to the unit owner/landlord for the month the payment to the unit owner/landlord for the month the notice was received, the tenant may avoid paying the notice was received, the tenant may avoid paying the association for that month if the tenant provides written association for that month if the tenant provides written evidence of payment.evidence of payment.

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Unit Owner Delinquency Unit Owner Delinquency Notice to Tenant continued…Notice to Tenant continued…

• The tenant must pay the association until released or The tenant must pay the association until released or until the tenant vacates the unit.until the tenant vacates the unit.

• The tenant is not liable for more than the owner’s The tenant is not liable for more than the owner’s delinquency.delinquency.

• The association may evict the owner’s tenant for non-The association may evict the owner’s tenant for non-payment after the notice is delivered under Ch. 83, F.S.payment after the notice is delivered under Ch. 83, F.S.

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Suspension of Use Rights for Document Suspension of Use Rights for Document ViolationsViolations

719.303(3)(a), F.S.719.303(3)(a), F.S.

Provides that the association may suspend for a Provides that the association may suspend for a “reasonable period of time”, the right of a unit owner or a “reasonable period of time”, the right of a unit owner or a unit owner’s tenant, guest, or invitee, to use the common unit owner’s tenant, guest, or invitee, to use the common elements, common facilities, or any other association elements, common facilities, or any other association property for failure to comply with any provision of the property for failure to comply with any provision of the cooperative documents or reasonable rules of the cooperative documents or reasonable rules of the association. association. “Reasonable period of time” is a question of “Reasonable period of time” is a question of fact in the specific circumstances and up to a judge.fact in the specific circumstances and up to a judge.

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Fine or Suspension of RightsFine or Suspension of Rights719.303(a), F.S.719.303(a), F.S.

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

• If the committee does not agree with the fine or If the committee does not agree with the fine or suspension, it may not be imposedsuspension, it may not be imposed. .

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90 Day Delinquency 90 Day Delinquency Suspension of Use and Voting RightsSuspension of Use and Voting Rights

Noticing RequirementsNoticing Requirements719.303(6), F.S.719.303(6), F.S.

• Adds § 719.303(6), F.S., to clarify the noticing Adds § 719.303(6), F.S., to clarify the noticing procedures to be followed by the cooperative association procedures to be followed by the cooperative association when suspending use and voting rights when an owner when suspending use and voting rights when an owner is more than 90 days delinquent in the payment of any is more than 90 days delinquent in the payment of any monetary obligation.monetary obligation.

• Specifically, it provides that it must be approved at a Specifically, it provides that it must be approved at a properly noticed board meeting(48 hours).properly noticed board meeting(48 hours).

• If approved, the board must notify the unit owner and, if If approved, the board must notify the unit owner and, if applicable, the unit’s occupant, licensee, or invitee by applicable, the unit’s occupant, licensee, or invitee by mail or hand delivery.mail or hand delivery.

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Change in QuorumChange in Quorum719.303(5), F.S.719.303(5), F.S.

Provides that a voting interest or consent right allocated to Provides that a voting interest or consent right allocated to a unit or member who has been suspended by the a unit or member who has been suspended by the cooperative association may not be counted towards the cooperative association may not be counted towards the total numbers of voting interests necessary to constitute total numbers of voting interests necessary to constitute a quorum, the number of voting interests required to a quorum, the number of voting interests required to conduct an election, or the number of voting interests conduct an election, or the number of voting interests required to approve an action under this chapter or required to approve an action under this chapter or pursuant to the cooperative documents, articles of pursuant to the cooperative documents, articles of incorporation, or bylaws.incorporation, or bylaws.

For example if there are 100 units in the cooperative For example if there are 100 units in the cooperative association and 10 have lost their voting rights, the association and 10 have lost their voting rights, the quorum requirement would now be based on 90 quorum requirement would now be based on 90 instead of 100. With 100 units the quorum instead of 100. With 100 units the quorum requirement would be 51 units. For 90, it would be 46 requirement would be 51 units. For 90, it would be 46 units.units.

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Customer Contact CenterCustomer Contact CenterFor 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 [email protected]

Statutes and other information concerning the division are available on the World Wide Web at

www.myfloridalicense.com/dbpr/lsc/index.html