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Article
Courtesy of The LEXOLOGY
By
Joshua M. Bialek and Theodore R. Walters
Published June 28, 2017
On June 14, 2017, Gov. Rick Scott approved Senate Bill
398 relating to estoppel certificates for condominium, cooperative and
homeowners’ associations.
What was the issue with the prior law? Condominium, cooperative and
homeowners’ associations in Florida had different laws pertaining to
estoppel certificates. Also, the Community Association Living Study Council,
a creation of the Florida legislature, recommended changes to estoppel
certificate fees. Accordingly, the new bill harmonizes the various
associations’ laws and makes changes to estoppel certificate fees.
What is new? The changes to Sections 718.116, 719.108 and 720.30851 revise
the requirements for estoppel certificates issued by condominium,
cooperative and homeowners’ associations as follows:
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Associations must respond to requests for estoppel
certificates within 10 business days.
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An association must designate on its website a person
or entity with a street or e-mail address for receipt of a request for
an estoppel certificate.
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An estoppel certificate that is hand-delivered or
sent by e-mail has a 30-day effective period; by regular mail, a 35-day
effective period.
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An estoppel certificate may be completed by any board
member, authorized agent or authorized representative of the
association.
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The association must provide statutorily specific
information on the estoppel certificate.
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An association is prohibited from charging a fee for
an amended estoppel certificate, and the new effective period begins on
the date of issuance for such amended certificate.
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An association waives the right to collect moneys
owed in excess of the amounts set forth in the estoppel certificate from
any person who in good faith relies upon the certificate.
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An association is prohibited from charging a fee for
preparing and delivering an estoppel certificate that is requested, if
it is not delivered within 10 business days.
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A summary proceeding pursuant to § 51.011 may now be
brought against a cooperative association.
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Fees an association may charge cannot exceed
specified amounts, even if multiple units owned by the same owner are
simultaneously requested from the same association.
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A lender or purchaser who pays for the preparation of
an estoppel certificate may not waive the right to reimbursement if the
closing does not occur, and the prevailing party in a suit to enforce a
right of reimbursement shall be awarded damages.
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A cooperative may now charge a fee for preparing and
delivering an estoppel certificate but the authorization must be
established by a written resolution.
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The Florida Department of Business and Professional
Regulation calculates the fees, and publishes the amounts, as adjusted,
on its website.
When is the effective date? July 1, 2017
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