HB 1223
Relating to Condominium Associations
H1223    GENERAL BILL by Robaina; (CO-SPONSORS) Antone; Arza; Barreiro; Cantens; Garcia; Llorente; Murzin; Rivera; Rubio; Wiles; Zapata
RECOMMENDED by Business Regulation
Condominium Associations; prohibits exercise of multiple votes by owners  of multiple units; provides for grandfathering & modification of rental  rights; provides certain voting & approval criteria for amendments  depriving owners of certain rights; authorizes association to conduct  criminal background checks of potential unit owners & tenants; requires  creation of Condominium Owners' Bill of Rights, etc. Amends Ch. 718.  EFFECTIVE DATE: Upon becoming law. 
02/20/04 HOUSE  Prefiled
03/02/04 HOUSE  Introduced -HJ 00095
Business Regulation 
State Administration 
Now in Business Regulation - For more info see: 
The bill was heard in this Committee on Wednesday, 3-10-2004, at 3.15. p.m. in
Morris Hall. Result: Favorable With Committee Substitute 
N  Altman
Y  Ambler
Y  Attkisson
Y  Baxley 
Y  Benson
Y  Bowen
Y  Brandenburg
Y  Dean
Y  Farkas
Y  Fields
Y  Garcia
Y  Greenstein
Y  Harper 
Y  Henriquez
Y  Holloway
Y Jennings
N  Johnson
N  Joyner 
N  Justice
Y  Kallinger
N  Kosmas 
Y  Littlefield
Y  Mahon
Y  Mayfield
Y  Mealor
Y  Murzin
Y  Paul
Y  Prieguez
Y  Reagan
Y  Richardson
Y  Ritter
Y  Robaina
Y  Ryan
Y  Smith
Y  Sorensen
Y  Stargel 
Y  Vana
N  Wishner
Y  Zapata

Total Yeas:  33  Total Nays:  6  Total Missed:  0 
Total Vote:  39 

( Identical  S 2498 -- Senator Evelyn Lynn, 
Compare H 1663 -- Representative Mary Brandenburg )

CODING: Words stricken are deletions; words underlined are additions. 

1 A bill to be entitled 
2 An act relating to condominium associations; amending s. 
3 718.103, F.S.; defining the term "immediate family 
4 member"; amending s. 718.104, F.S.; prohibiting the 
5 exercise of multiple votes by owners of multiple units; 
6 amending s. 718.110, F.S.; providing for grandfathering 
7 and modification of rental rights; providing for certain 
8 application of the amendment of unit owners' rental 
9 rights; providing certain voting and approval criteria for 
10 amendments depriving owners of certain rights; amending s. 
11 718.112, F.S.; requiring super majority votes to reduce 
12 certain required reserves; creating s. 718.1125, F.S.; 
13 imposing eligibility restrictions on association members; 
14 authorizing the Division of Florida Land Sales, 
15 Condominiums, and Mobile Homes to adopt rules; amending s. 
16 718.116, F.S.; increasing percentage of mortgage debt used 
17 as a limit on liability in certain foreclosure actions;
18 requiring notice of intent to record a claim of lien; 
19 designating liens inoperative and unenforceable if 
20 requirements are not fulfilled; changing priority of 
21 claims to which payments for delinquent assessments are 
22 made; providing that certain late fees and interest shall 
23 not be the sole basis for a lien; providing limitations on 
24 recording a claim of lien; requiring a claim of lien and 
25 notice for collections to contain a certain statement; 
26 providing criminal penalties for willful and malicious 
27 imposition, enforcement, or overvaluation of a lien; 
28 requiring a super majority board approval for excess funds 
29 from a special assessment to be credited against future 
30 assessments; requiring board actions imposing financial 
31 hardships to be ratified by a majority of all voting 
32 interests; amending s. 718.3025, F.S.; requiring 
33 additional disclosures for contract validity or 
34 enforceability; providing that certain business entities 
35 may be contracted by the association to provide certain 
36 services if approved by a majority of all unit owners; 
37 amending s. 718.3026, F.S.; deleting a provision 
38 authorizing associations with fewer than 100 units to opt 
39 out of certain products and services contracting 
40 requirements; lowering a threshold percentage to require 
41 competitive bidding; requiring a minimum number of bids; 
42 specifying nonapplication to all employment contracts; 
43 creating s. 718.305, F.S.; authorizing the association to 
44 conduct criminal background checks of potential unit 
45 owners and tenants; amending s. 718.501, F.S.; requiring 
46 mandatory training for certain board members; creating s. 
47 718.5011, F.S.; creating an Office of the Condominium 
48 Ombudsman within the division of Florida Land Sales, 
49 Condominiums, and Mobile Homes; providing for the office's 
50 independence from the division; authorizing the Joint 
51 Legislative Auditing Committee to appoint the ombudsman; 
52 requiring the ombudsman to be an attorney; providing for 
53 the filling of a vacant ombudsman position; requiring the 
54 ombudsman and staff to subscribe to the oath of office 
55 required of state officers; prohibiting the ombudsman and 
56 staff from engaging in any other profession, serving as a 
57 representative or employee of any political party, or 
58 receiving remuneration for activities on behalf of 
59 political candidates; prohibiting the ombudsman and staff 
60 from seeking public office unless resigned from the Office 
61 of the Condominium Ombudsman; providing requirements and 
62 limitations on office staff; creating s. 718.5012, F.S.; 
63 providing for powers and duties of the ombudsman; creating 
64 s. 718.5013, F.S.; providing for compensation and expenses 
65 for the office; authorizing the ombudsman to employ 
66 clerical and technical assistants for certain purposes; 
67 creating s. 718.5014, F.S.; providing for the location of 
68 the ombudsman's office; creating s. 718.5015, F.S.; 
69 creating the Advisory Council on Condominiums; providing 
70 for membership, functions, meetings, and offices of the 
71 council; amending s. 718.504, F.S.; revising provisions 
72 relating to certain prospectus and offering circulars; 
73 requiring developers of certain condominiums to provide a 
74 prospectus including a "Frequently Asked Questions and 
75 Answers" document; requiring the document to contain 
76 certain information; reducing the threshold amount to be 
77 required to be disclosed in controversy for litigation; 
78 requiring certain information to be included in the 
79 prospectus or offering circular; providing for a type two 
80 transfer of all records, personnel, property, and 
81 unexpended balances of appropriations, allocations, or 
82 other funds for the administration of pt. VIIII of ch. 
83 468, F.S., from the Division of Professions to the 
84 Division of Florida Land Sales, Condominiums, and Mobile 
85 Homes within the Department of Business and Professional 
86 Regulation; preserving the department's authority to 
87 pursue certain remedies; creating s. 718.510, F.S.; 
88 requiring the creation of a Condominium Owners' Bill of 
89 Rights; providing an effective date. 

91 Be It Enacted by the Legislature of the State of Florida: 

93      Section 1.  Subsections (18) through (30) of section 
94 718.103, Florida Statutes, are renumbered as subsections (19) 
95 through (31), respectively, and a new subsection (18) is added
96 to said section, to read: 
97      718.103  Definitions.--As used in this chapter, the term: 
98      (18)  "Immediate family member" means a parent, child, 
99 spouse, sibling, grandparent, grandchild, uncle, aunt, niece, 
100 nephew, great-uncle, great-aunt, great-nephew, great-niece, 
101 first cousin, or second cousin by blood, marriage, or adoption 
102 and includes half and step relatives. 
103      Section 2.  Paragraph (j) of subsection (4) of section 
104 718.104, Florida Statutes, is amended to read: 
105      718.104  Creation of condominiums; contents of 
106 declaration.--Every condominium created in this state shall be 
107 created pursuant to this chapter. 
108      (4)  The declaration must contain or provide for the 
109 following matters: 
110      (j)  Unit owners' membership and voting rights in the 
111 association. However, any provision in a declaration or bylaws
112 allowing an owner of multiple units in the same condominium to
113 exercise multiple votes shall be void.
114      Section 3.  Subsection (13) is added to section 718.110, 
115 Florida Statutes, to read: 
116      718.110  Amendment of declaration; correction of error or 
117 omission in declaration by circuit court; grandfathering and
118 modification of certain rights.--
119      (13)(a)  Unless expressly stated in the amendment, any
120 amendment restricting unit owners' rights relating to the rental
121 of units, keeping of pets, or allocation of parking spaces shall
122 apply only to unit owners who purchase their unit after the
123 effective date of that amendment.
124      (b)  Notwithstanding any other provision of law, or of the
125 declaration or bylaws, if an amendment expressly deprives
126 current unit owners of any part of their rights mentioned in
127 subsection (a), it must be approved by at least three-fourths of
128 the voting interests. A declaration or an amendment to a
129 declaration may provide for a higher super majority vote
130 requirement.
131      Section 4.  Paragraph (f) of subsection (2) of section 
132 718.112, Florida Statutes, is amended to read: 
133      718.112  Bylaws.-- 
134      (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the 
135 following and, if they do not do so, shall be deemed to include 
136 the following: 
137      (f)  Annual budget.-- 
138      1.  The proposed annual budget of common expenses shall be 
139 detailed and shall show the amounts budgeted by accounts and 
140 expense classifications, including, if applicable, but not 
141 limited to, those expenses listed in s. 718.504(21). A 
142 multicondominium association shall adopt a separate budget of 
143 common expenses for each condominium the association operates 
144 and shall adopt a separate budget of common expenses for the 
145 association. In addition, if the association maintains limited 
146 common elements with the cost to be shared only by those 
147 entitled to use the limited common elements as provided for in 
148 s. 718.113(1), the budget or a schedule attached thereto shall 
149 show amounts budgeted therefor. If, after turnover of control of 
150 the association to the unit owners, any of the expenses listed 
151 in s. 718.504(21) are not applicable, they need not be listed. 
152      2.  In addition to annual operating expenses, the budget 
153 shall include reserve accounts for capital expenditures and 
154 deferred maintenance. These accounts shall include, but are not 
155 limited to, roof replacement, building painting, and pavement 
156 resurfacing, regardless of the amount of deferred maintenance 
157 expense or replacement cost, and for any other item for which 
158 the deferred maintenance expense or replacement cost exceeds 
159 $10,000. The amount to be reserved shall be computed by means of 
160 a formula which is based upon estimated remaining useful life 
161 and estimated replacement cost or deferred maintenance expense
162 of each reserve item. The association may adjust replacement 
163 reserve assessments annually to take into account any changes in 
164 estimates or extension of the useful life of a reserve item 
165 caused by deferred maintenance. This subsection does not apply 
166 to an adopted budget in which the members of an association have 
167 determined, by a two-thirdsmajority vote at a duly called 
168 meeting of the association, to provide no reserves or less 
169 reserves than required by this subsection. However, prior to 
170 turnover of control of an association by a developer to unit 
171 owners other than a developer pursuant to s. 718.301, the 
172 developer may vote to waive the reserves or reduce the funding 
173 of reserves for the first 2 fiscal years of the association's 
174 operation, beginning with the fiscal year in which the initial 
175 declaration is recorded, after which time reserves may be waived 
176 or reduced only upon the vote of a majority of all nondeveloper 
177 voting interests voting in person or by limited proxy at a duly 
178 called meeting of the association. If a meeting of the unit 
179 owners has been called to determine whether to waive or reduce 
180 the funding of reserves, and no such result is achieved or a 
181 quorum is not attained, the reserves as included in the budget 
182 shall go into effect. After the turnover, the developer may vote 
183 its voting interest to waive or reduce the funding of reserves. 
184      3.  Reserve funds and any interest accruing thereon shall 
185 remain in the reserve account or accounts, and shall be used 
186 only for authorized reserve expenditures unless their use for 
187 other purposes is approved in advance by a majority vote at a 
188 duly called meeting of the association. Prior to turnover of 
189 control of an association by a developer to unit owners other 
190 than the developer pursuant to s. 718.301, the developer- 
191 controlled association shall not vote to use reserves for 
192 purposes other than that for which they were intended without 
193 the approval of a majority of all nondeveloper voting interests, 
194 voting in person or by limited proxy at a duly called meeting of 
195 the association. 
196      4. In a multicondominium association, the only voting 
197 interests which are eligible to vote on questions that involve 
198 waiving or reducing the funding of reserves, or using existing 
199 reserve funds for purposes other than purposes for which the 
200 reserves were intended, are the voting interests of the units 
201 subject to assessment to fund the reserves in question. 
202      Section 5.  Section 718.1125, Florida Statutes, is created 
203 to read: 
204      718.1125  Board eligibility restrictions.--
205      (1)  Notwithstanding any provision of the declaration or
206 bylaws, no one may serve on the board of the same association
207      (a)  Alongside an immediate family member who is also on
208 that board. If this paragraph is violated, the later-elected
209 immediate family member's election shall be deemed void. Good- 
210 faith ignorance of such a relationship shall prevent the
211 operation of this paragraph, but only until such a relationship
212 is discovered.
213      (b)  Unless actually resident in the condominium for at
214 least 3 months out of the year prior to the annual meeting at
215 which he or she was elected. 
216      (c)  Unless subjected to a criminal background check by the
217 Department of Law Enforcement, the results of which shall be
218 available to all unit owners in that condominium notwithstanding
219 any public records exemption. 
220      (d)  For more than 2 consecutive years. A person barred
221 from serving on a board under this paragraph may seek reelection
222 after an intervening 2 years or may seek to be reelected 
223 immediately, only if, no other candidate seeks to be elected and
224 the person otherwise barred is approved by a majority of the
225 voting interests.
226      (2)  The Department of Law Enforcement shall, in 
227 coordination with the division, adopt rules pursuant to chapter 
228 120 to provide for criminal background checks required by 
229 paragraph (1)(e) and for recovering the costs of such checks
230 from associations.
231      Section 6.  Paragraphs (b) and (c) of subsection (1), 
232 subsection (3), paragraphs (a) and (b) of subsection (5), 
233 paragraph (b) of subsection (6), and subsection (10) of section 
234 718.116, Florida Statutes, are amended, paragraph (e) is added 
235 to subsection (6) of said section, and subsection (11) is added 
236 to said section, to read: 
237      718.116  Assessments; liability; lien and priority; 
238 interest; collection.-- 
239      (1) 
240      (b)  The liability of a first mortgagee or its successor or 
241 assignees who acquire title to a unit by foreclosure or by deed 
242 in lieu of foreclosure for the unpaid assessments that became 
243 due prior to the mortgagee's acquisition of title is limited to 
244 the lesser of: 
245      1.  The unit's unpaid common expenses and regular periodic 
246 assessments which accrued or came due during the 6 months 
247 immediately preceding the acquisition of title and for which 
248 payment in full has not been received by the association; or 
249      2. FiveOne percent of the original mortgage debt. The 
250 provisions of this paragraph apply only if the first mortgagee 
251 joined the association as a defendant in the foreclosure action. 
252 Joinder of the association is not required if, on the date the 
253 complaint is filed, the association was dissolved or did not 
254 maintain an office or agent for service of process at a location 
255 which was known to or reasonably discoverable by the mortgagee. 
256      (c)  The person acquiring title shall pay the amount owed 
257 to the association within 30 days after transfer of title. 
258 Failure to pay the full amount when due shall entitle the 
259 association to record a claim of lien against the parcel and 
260 proceed in the same manner as provided in this section for the 
261 collection of unpaid assessments. Such a lien may not be
262 recorded until 30 days after the association posts notice by 
263 certified mail to the person acquiring title of its intent to
264 record the lien.
265      (3)  Assessments and installments on them which are not 
266 paid when due bear interest at the rate provided in the 
267 declaration, from the due date until paid. This rate may not 
268 exceed the rate allowed by law, and, if no rate is provided in 
269 the declaration, interest shall accrue at the rate of 18 percent 
270 per year. Also, if the declaration or bylaws so provide, the 
271 association may charge an administrative late fee in addition to 
272 such interest, in an amount not to exceed the greater of $25 or 
273 5 percent of each installment of the assessment for each 
274 delinquent installment that the payment is late. Any payment 
275 received by an association shall be applied first to the
276 delinquent assessment, then to any interest accrued by the
277 association, then to any administrative late fee, and then to 
278 any costs and reasonable attorney's fees incurred in collection,
279 and then to the delinquent assessment. The foregoing shall be 
280 applicable notwithstanding any restrictive endorsement, 
281 designation, or instruction placed on or accompanying a payment. 
282 A late fee shall not be subject to the provisions in chapter 687 
283 or s. 718.303(3). 
284      (5)(a)  The association has a lien on each condominium 
285 parcel to secure the payment of assessments. No administrative 
286 late fee or interest shall be the sole basis for a lien. Except 
287 as otherwise provided in subsection (1) and as set forth below, 
288 the lien is effective from and shall relate back to the
289 recording of the original declaration of condominium, or, in the
290 case of lien on a parcel located in a phase condominium, the 
291 last to occur of the recording of the original declaration or
292 amendment thereto creating the parcel. However, as to first 
293 mortgages of record, the lien is effective from and after 
294 recording of a claim of lien in the public records of the county 
295 in which the condominium parcel is located. Nothing in this 
296 subsection shall be construed to bestow upon any lien, mortgage, 
297 or certified judgment of record on April 1, 1992, including the 
298 lien for unpaid assessments created herein, a priority which, by 
299 law, the lien, mortgage, or judgment did not have before that 
300 date. 
301      (b)  To be valid, a claim of lien must state the 
302 description of the condominium parcel, the name of the record 
303 owner, the name and address of the association, the amount due, 
304 and the due dates. It must be executed and acknowledged by an 
305 officer or authorized agent of the association. The claim of 
306 lien may not be recorded until 45 days after the association
307 posts notice of its intent to record the claim by certified or
308 registered mail to the record owner or delivers such notice to
309 the record owner by hand. Failure to comply with this
310 requirement renders the claim of lien inoperative and
311 unenforceable until compliance. No such lien shall be effective
312 longer than 1 year after the claim of lien was recorded unless, 
313 within that time, an action to enforce the lien is commenced. 
314 The 1-year period shall automatically be extended for any length 
315 of time during which the association is prevented from filing a 
316 foreclosure action by an automatic stay resulting from a 
317 bankruptcy petition filed by the parcel owner or any other 
318 person claiming an interest in the parcel. The claim of lien 
319 shall secure all unpaid assessments which are due and which may 
320 accrue subsequent to the recording of the claim of lien and 
321 prior to the entry of a certificate of title, as well as 
322 interest and all reasonable costs and attorney's fees incurred 
323 by the association incident to the collection process. Upon 
324 payment in full, the person making the payment is entitled to a 
325 satisfaction of the lien. 
326      (6) 
327      (b)  No foreclosure judgment may be entered until at least 
328 30 days after the association gives written notice to the unit 
329 owner of its intention to foreclose its lien to collect the 
330 unpaid assessments. If this notice is not given at least 30 days 
331 before the foreclosure action is filed, and if the unpaid 
332 assessments, including those coming due after the claim of lien 
333 is recorded, are paid before the entry of a final judgment of 
334 foreclosure or money judgment, the association shall not recover 
335 attorney's fees or costs. The notice must be given by delivery 
336 of a copy of it to the unit owner or by certified or registered 
337 mail, return receipt requested, addressed to the unit owner at 
338 his or her last known address; and, upon such mailing, the 
339 notice shall be deemed to have been given, and the court shall 
340 proceed with the foreclosure action and may award attorney's 
341 fees and costs as permitted by law. The notice requirements of 
342 this subsection are satisfied if the unit owner records a notice 
343 of contest of lien as provided in subsection (5). The notice 
344 requirements of this subsection do not apply if an action to 
345 foreclose a mortgage on the condominium unit is pending before 
346 any court; if the rights of the association would be affected by 
347 such foreclosure; and if actual, constructive, or substitute 
348 service of process has been made on the unit owner. Each claim
349 of lien as well as each 30-day written notice for collections
350 shall contain the following statement distinguished in
351 conspicuous bold, enlarged, or italicized type

356      (e)  A board member or officer of an association, or his or
357 her immediate family member, who willfully and maliciously acts
358 to impose, enforce, or increase the overall value of a lien for 
359 the payment of assessments with the intent to purchase or assist 
360 in the purchase of a condominium unit at foreclosure commits a
361 misdemeanor of the first degree, punishable as provided in s.
362 775.082 or s. 775.083.
363      (10)  The specific purpose or purposes of any special 
364 assessment approved in accordance with the condominium documents 
365 shall be set forth in a written notice of such assessment sent 
366 or delivered to each unit owner. The funds collected pursuant to 
367 a special assessment shall be used only for the specific purpose 
368 or purposes set forth in such notice. However, upon completion 
369 of such specific purpose or purposes, any excess funds will be 
370 considered common surplus, and may, at the discretion of the
371 board, either be returned to the unit owners or, upon approval
372 of two-thirds of the board, be applied as a credit toward future 
373 assessments. 
374      (11)  Notwithstanding any provision of the declaration or
375 bylaws, any action of the board, even those characterized as
376 special assessments, that imposes a financial hardship on any or 
377 all of the unit owners must be ratified by a majority of the 
378 voting interests at a duly convened meeting of the association
379 to be held within 60 days of such action or such action shall be
380 void.
381      Section 7.  Paragraph (e) of subsection (1) of section 
382 718.3025, Florida Statutes, is amended, subsection (4) of said 
383 section is renumbered as subsection (5), and a new subsection 
384 (4) is added to said section, to read: 
385      718.3025  Agreements for operation, maintenance, or 
386 management of condominiums; specific requirements.-- 
387      (1)  No written contract between a party contracting to 
388 provide maintenance or management services and an association 
389 which contract provides for operation, maintenance, or 
390 management of a condominium association or property serving the 
391 unit owners of a condominium shall be valid or enforceable 
392 unless the contract: 
393      (e)  Discloses any financial or ownership interest which 
394 the developer, if the developer is in control of the 
395 association, any officer of the association, or any member of
396 the board holds with regard to the party contracting to provide 
397 maintenance or management services. 
398      (4)  A business entity of whom an association's board
399 member or officer or his or her immediate family member is an
400 employee, or in which an association's board member or officer
401 or any or all of his or her immediate family members together 
402 hold an ownership interest of 10 percent or more, may be
403 contracted to provide maintenance or management services to that 
404 association only if approved by a majority of all unit owners. A
405 contract in violation of this subsection shall be void.
406      Section 8.  Section 718.3026, Florida Statutes, is amended 
407 to read: 
408      718.3026  Contracts for products and services; in writing; 
409 bids; exceptions.--Associations with less than 100 units may opt 
410 out of the provisions of this section if two-thirds of the unit
411 owners vote to do so, which opt-out may be accomplished by a
412 proxy specifically setting forth the exception from this
413 section. 
414      (1)  All contracts as further described herein or any 
415 contract that is not to be fully performed within 1 year after 
416 the making thereof, for the purchase, lease, or renting of 
417 materials or equipment to be used by the association in 
418 accomplishing its purposes under this chapter, and all contracts 
419 for the provision of services, shall be in writing. If a 
420 contract for the purchase, lease, or renting of materials or 
421 equipment, or for the provision of services, requires payment by 
422 the association on behalf of any condominium operated by the 
423 association in the aggregate that exceeds 2.5 5 percent of the 
424 total annual budget of the association, including reserves, the 
425 association shall obtain no fewer than three competitive bids 
426 for the materials, equipment, or services. Nothing contained 
427 herein shall be construed to require the association to accept 
428 the lowest bid. 
429      (2)(a)1.  Notwithstanding the foregoing, employment
430 contracts with employees of the association, and contracts for
431 attorney, accountant, architect, community association manager,
432 timeshare management firm, engineering, and landscape architect
433 services are not subject to the provisions of this section. 
434      2.  A contract executed before January 1, 1992, and any 
435 renewal thereof, is not subject to the competitive bid 
436 requirements of this section. If a contract was awarded under 
437 the competitive bid procedures of this section, any renewal of 
438 that contract is not subject to such competitive bid 
439 requirements if the contract contains a provision that allows 
440 the board to cancel the contract on 30 days' notice. Materials, 
441 equipment, or services provided to a condominium under a local 
442 government franchise agreement by a franchise holder are not 
443 subject to the competitive bid requirements of this section. A 
444 contract with a manager, if made by a competitive bid, may be 
445 made for up to 3 years. A condominium whose declaration or 
446 bylaws provides for competitive bidding for services may operate 
447 under the provisions of that declaration or bylaws in lieu of 
448 this section if those provisions are not less stringent than the 
449 requirements of this section. 
450      (b)  Nothing contained herein is intended to limit the 
451 ability of an association to obtain needed products and services 
452 in an emergency. 
453      (c)  This section shall not apply if the business entity 
454 with which the association desires to enter into a contract is 
455 the only source of supply within the county serving the 
456 association. 
457      (d)  Nothing contained herein shall excuse a party
458 contracting to provide maintenance or management services from 
459 compliance with s. 718.3025. 
460      Section 9.  Section 718.305, Florida Statutes, is created 
461 to read: 
462      718.305  Criminal background checks for potential unit
463 owners and tenants.--Upon receiving notice of a potential unit
464 owner or tenant, the association shall, at the expense of the
465 applicant, conduct a criminal background check of all persons
466 seeking to own or rent a unit. 
467      Section 10.  Paragraph (j) of subsection (1) of section 
468 718.501, Florida Statutes, is amended to read: 
469      718.501  Powers and duties of Division of Florida Land 
470 Sales, Condominiums, and Mobile Homes.-- 
471      (1)  The Division of Florida Land Sales, Condominiums, and 
472 Mobile Homes of the Department of Business and Professional 
473 Regulation, referred to as the "division" in this part, in 
474 addition to other powers and duties prescribed by chapter 498, 
475 has the power to enforce and ensure compliance with the 
476 provisions of this chapter and rules promulgated pursuant hereto 
477 relating to the development, construction, sale, lease, 
478 ownership, operation, and management of residential condominium 
479 units. In performing its duties, the division has the following 
480 powers and duties: 
481      (j)  The division shall provide training programs for 
482 condominium association board members and unit owners. Training
483 shall be mandatory for newly elected board members and members
484 currently serving on a board who have not previously voluntarily
485 attended training.
486      Section 11.  Section 718.5011, Florida Statutes, is created 
487 to read: 
488      718.5011  Ombudsman; appointment; oath; restrictions on
489 ombudsman and his or her employees.--
490      (1)  There is created an Office of the Condominium
491 Ombudsman that for administrative purposes shall be located
492 within the Division of Florida Land Sales, Condominiums, and
493 Mobile Homes. However, the office shall be independent of the
494 division.
495      (2)  The Joint Legislative Auditing Committee shall appoint 
496 an ombudsman by majority vote of the members of that committee.
497 The ombudsman shall be an attorney admitted to practice before
498 the Florida Supreme Court and shall serve at the pleasure of the
499 Joint Legislative Auditing Committee. Vacancies in the office
500 shall be filled in the same manner as the original appointment. 
501 The ombudsman and attorneys under his staff shall take and
502 subscribe to the oath of office required of state officers by
503 the State Constitution. No officer or full-time employee of the
504 ombudsman's office shall actively engage in any other business
505 or profession; serve as the representative of any political 
506 party, executive committee, or other governing body thereof;
507 serve as an executive, officer, or employee of any political
508 party, committee, organization, or association; receive
509 remuneration for activities on behalf of any candidate for
510 public office; or engage on behalf of any candidate for public
511 office in the solicitation of votes or other activities on
512 behalf of such candidacy. Neither the ombudsman nor any employee
513 of his or her office shall become a candidate for election to
514 public office unless he or she first resigns from his or her
515 office or employment.
516      Section 12.  Section 718.5012, Florida Statutes, is created 
517 to read: 
518      718.5012  Ombudsman; powers and duties.--The ombudsman
519 shall have such powers as are necessary to carry out the duties
520 of his or her office, including, but not limited to, the
521 following specific powers: 
522      (1)  To have access to and use of all files and records of 
523 the division. 
524      (2)  To prepare and issue reports, recommendations, and
525 proposed orders to the division, the Governor, the Advisory 
526 Council on Condominiums, the President of the Senate, the
527 Speaker of the House of Representatives, and minority leaders of
528 the Senate and the House of Representatives on any matter or 
529 subject within the jurisdiction of the division, and to make
530 such recommendations as he or she deems appropriate for
531 legislation relative to division procedures, rules,
532 jurisdiction, personnel, and functions. 
533      (3)  To act as liaison between the division and unit 
534 owners, and to assist any unit owner in the preparation and
535 filing of a complaint to be investigated by the division. The
536 ombudsman shall establish procedures for receiving complaints.
537 Any complaint deemed valid by the ombudsman and properly falling
538 within the jurisdiction of the division and requiring remedial
539 action shall be identified and promptly filed with the division.
540 Upon the concurrence of the division, the ombudsman shall 
541 establish target dates for concluding an investigation and for
542 taking appropriate specified remedial action. The ombudsman may
543 recommend that the division initiate enforcement proceedings in
544 accordance with chapter 120. The department and the ombudsman
545 may take findings of a criminal nature and submit them as
546 evidence to the State Attorneys office, and work with them to
547 bring charges against the alleged parties involved. 
548      (4)  To make recommendations to the division for changes in
549 rules and procedures for the filing, investigation, and
550 resolution of complaints filed by unit owners.
551      Section 13.  Section 718.5013, Florida Statutes, is created 
552 to read: 
553      718.5013  Ombudsman; compensation and expenses.-- 
554      (1)  All costs and expenses incurred by the Office of the
555 Condominium Ombudsman shall be paid from disbursements from the
556 Division of Florida Land Sales, Condominiums, and Mobile Homes
557 Trust Fund and shall require approval of the Joint Legislative
558 Auditing Committee.
559      (2)  The Joint Legislative Auditing Committee may authorize
560 the ombudsman to employ clerical and technical assistants whose
561 qualifications, duties, and responsibilities the committee shall
562 from time to time prescribe, and to enter into such contracts as
563 necessary. The committee may authorize retention of the services
564 of additional attorneys or experts to the extent that the best
565 interests of the people of the state will be better served
566 thereby, including the retention of expert witnesses and other
567 technical personnel for participation in contested proceedings
568 before the division. 
569      Section 14.  Section 718.5014, Florida Statutes, is created 
570 to read: 
571      718.5014  Ombudsman; location.--The ombudsman shall
572 maintain his or her principal office in Leon County on the
573 premises of the division or, if suitable space cannot be
574 provided there, at such other place convenient to the offices of
575 the division as will enable the ombudsman to expeditiously carry
576 out the duties and functions of his or her office. The ombudsman
577 may establish branch offices upon the concurrence of the Joint
578 Legislative Auditing Committee
579      Section 15.  Section 718.5015, Florida Statutes, is created 
580 to read: 
581      718.5015  Advisory council; membership functions.-- 
582      (1)  There is created the Advisory Council on Condominiums.
583 The council shall consist of seven members. Two members shall be
584 appointed by the Speaker of the House of Representatives, two
585 members shall be appointed by the President of the Senate, and
586 three members shall be appointed by the Governor. At least one
587 member shall represent timeshare condominiums. Members shall be
588 appointed to 2-year terms; however, of the initial appointments,
589 one of the members appointed by each of the Governor, the
590 Speaker of the House of Representatives, and the President of
591 the Senate shall be appointed to 1-year terms. In addition to
592 these appointed members, the director of the Division of Florida
593 Land Sales, Condominiums, and Mobile Homes shall serve as an ex
594 officio member of the council. It is the intent of the
595 Legislature that the persons appointed to this council represent 
596 a cross-section of persons interested in condominium issues. For
597 administrative purposes, the council shall be located in the
598 Division of Florida Land Sales, Condominiums, and Mobile Homes
599 of the Department of Business and Professional Regulation.
600 Members of the council shall serve without compensation, but 
601 shall be entitled to receive per diem and travel expenses
602 pursuant to s. 112.061 while on official business
603      (2)  The functions of the advisory council shall be to:
604      (a)  Receive input from the public regarding issues of 
605 concern with respect to condominiums and to receive
606 recommendations for any changes to be made in the condominium
607 law. The issues that the council shall consider shall include,
608 but shall not be limited to, the rights and responsibilities of
609 the unit owners in relation to the rights and responsibilities
610 of the association.
611      (b)  Review, evaluate, and advise the division concerning
612 revisions and adoption of rules affecting condominiums.
613      (c)  Recommend improvements, if needed, in the education
614 programs offered by the division. 
615      (3)  The council is authorized to elect a chair and vice
616 chair and such other offices as it may deem advisable. The
617 council shall meet at the call of its chair, at the request of a
618 majority of its membership, at the request of the division, or
619 at such times as may be prescribed by its rules. A majority of
620 the members of the council shall constitute a quorum for the
621 transaction of all business and the carrying out of the duties
622 of the council.
623      Section 16.  Section 718.504, Florida Statutes, is amended, 
624 and subsection (29) is added to said section, to read: 
625      718.504  Prospectus or offering circular; "Frequently Asked
626 Questions and Answers".--Every developer of a residential 
627 condominium which contains more than 20 residential units, or 
628 which is part of a group of residential condominiums which will 
629 be served by property to be used in common by unit owners of 
630 more than 20 residential units, shall prepare a prospectus or 
631 offering circular and file it with the Division of Florida Land 
632 Sales, Condominiums, and Mobile Homes prior to entering into an 
633 enforceable contract of purchase and sale of any unit or lease 
634 of a unit for more than 5 years and shall furnish a copy of the 
635 prospectus or offering circular to each buyer. In addition to 
636 the prospectus or offering circular, any prospective each buyer 
637 from the developer or a current unit owner shall be furnished a 
638 separate documentpage entitled "Frequently Asked Questions and 
639 Answers," which shall be in accordance with a format approved by 
640 the division and a copy of the financial information required by 
641 s. 718.111. This documentpage shall, in readable language, 
642 inform prospective purchasers regarding their voting rights and 
643 unit use restrictions, including restrictions on the leasing of 
644 a unit; shall indicate whether and in what amount the unit 
645 owners or the association is obligated to pay rent or land use 
646 fees for recreational or other commonly used facilities; shall 
647 contain a statement identifying that amount of assessment which, 
648 pursuant to the budget, would be levied upon each unit type, 
649 exclusive of any special assessments, and which shall further 
650 identify the basis upon which assessments are levied, whether 
651 monthly, quarterly, or otherwise; shall state and identify any 
652 court cases in which the association is currently a party of 
653 record in which the association may face liability in excess of 
654 $25,000 or more $100,000; and which shall further state whether 
655 membership in a recreational facilities association is 
656 mandatory, and if so, shall identify the fees currently charged 
657 per unit type. The division shall by rule require such other 
658 disclosure as in its judgment will assist prospective 
659 purchasers. The prospectus or offering circular may include more 
660 than one condominium, although not all such units are being 
661 offered for sale as of the date of the prospectus or offering 
662 circular. The prospectus or offering circular must contain the 
663 following information: 
664      (1)  The front cover or the first page must contain only: 
665      (a)  The name of the condominium. 
666      (b)  The following statements in conspicuous type: 
677      (2)  Summary: The next page must contain all statements 
678 required to be in conspicuous type in the prospectus or offering 
679 circular. 
680      (3)  A separate index of the contents and exhibits of the 
681 prospectus. 
682      (4)  Beginning on the first page of the text (not including 
683 the summary and index), a description of the condominium, 
684 including, but not limited to, the following information: 
685      (a)  Its name and location. 
686      (b)  A description of the condominium property, including, 
687 without limitation: 
688      1.  The number of buildings, the number of units in each 
689 building, the number of bathrooms and bedrooms in each unit, and 
690 the total number of units, if the condominium is not a phase 
691 condominium, or the maximum number of buildings that may be 
692 contained within the condominium, the minimum and maximum 
693 numbers of units in each building, the minimum and maximum 
694 numbers of bathrooms and bedrooms that may be contained in each 
695 unit, and the maximum number of units that may be contained 
696 within the condominium, if the condominium is a phase 
697 condominium. 
698      2.  The page in the condominium documents where a copy of 
699 the plot plan and survey of the condominium is located. 
700      3.  The estimated latest date of completion of 
701 constructing, finishing, and equipping. In lieu of a date, the 
702 description shall include a statement that the estimated date of 
703 completion of the condominium is in the purchase agreement and a 
704 reference to the article or paragraph containing that 
705 information. 
706      (c)  The maximum number of units that will use facilities 
707 in common with the condominium. If the maximum number of units 
708 will vary, a description of the basis for variation and the 
709 minimum amount of dollars per unit to be spent for additional 
710 recreational facilities or enlargement of such facilities. If 
711 the addition or enlargement of facilities will result in a 
712 material increase of a unit owner's maintenance expense or 
713 rental expense, if any, the maximum increase and limitations 
714 thereon shall be stated. 
715      (5)(a)  A statement in conspicuous type describing whether 
716 the condominium is created and being sold as fee simple 
717 interests or as leasehold interests. If the condominium is 
718 created or being sold on a leasehold, the location of the lease 
719 in the disclosure materials shall be stated. 
720      (b)  If timeshare estates are or may be created with 
721 respect to any unit in the condominium, a statement in 
722 conspicuous type stating that timeshare estates are created and 
723 being sold in units in the condominium. 
724      (6)  A description of the recreational and other commonly 
725 used facilities that will be used only by unit owners of the 
726 condominium, including, but not limited to, the following: 
727      (a)  Each room and its intended purposes, location, 
728 approximate floor area, and capacity in numbers of people. 
729      (b)  Each swimming pool, as to its general location, 
730 approximate size and depths, approximate deck size and capacity, 
731 and whether heated. 
732      (c)  Additional facilities, as to the number of each 
733 facility, its approximate location, approximate size, and 
734 approximate capacity. 
735      (d)  A general description of the items of personal 
736 property and the approximate number of each item of personal 
737 property that the developer is committing to furnish for each 
738 room or other facility or, in the alternative, a representation 
739 as to the minimum amount of expenditure that will be made to 
740 purchase the personal property for the facility. 
741      (e)  The estimated date when each room or other facility 
742 will be available for use by the unit owners. 
743      (f)1.  An identification of each room or other facility to 
744 be used by unit owners that will not be owned by the unit owners 
745 or the association; 
746      2.  A reference to the location in the disclosure materials 
747 of the lease or other agreements providing for the use of those 
748 facilities; and 
749      3.  A description of the terms of the lease or other 
750 agreements, including the length of the term; the rent payable, 
751 directly or indirectly, by each unit owner, and the total rent 
752 payable to the lessor, stated in monthly and annual amounts for 
753 the entire term of the lease; and a description of any option to 
754 purchase the property leased under any such lease, including the 
755 time the option may be exercised, the purchase price or how it 
756 is to be determined, the manner of payment, and whether the 
757 option may be exercised for a unit owner's share or only as to 
758 the entire leased property. 
759      (g)  A statement as to whether the developer may provide 
760 additional facilities not described above; their general 
761 locations and types; improvements or changes that may be made; 
762 the approximate dollar amount to be expended; and the maximum 
763 additional common expense or cost to the individual unit owners 
764 that may be charged during the first annual period of operation 
765 of the modified or added facilities. 

767 Descriptions as to locations, areas, capacities, numbers, 
768 volumes, or sizes may be stated as approximations or minimums. 
769      (7)  A description of the recreational and other facilities 
770 that will be used in common with other condominiums, community 
771 associations, or planned developments which require the payment 
772 of the maintenance and expenses of such facilities, either 
773 directly or indirectly, by the unit owners. The description 
774 shall include, but not be limited to, the following: 
775      (a)  Each building and facility committed to be built. 
776      (b)  Facilities not committed to be built except under 
777 certain conditions, and a statement of those conditions or 
778 contingencies. 
779      (c)  As to each facility committed to be built, or which 
780 will be committed to be built upon the happening of one of the 
781 conditions in paragraph (b), a statement of whether it will be 
782 owned by the unit owners having the use thereof or by an 
783 association or other entity which will be controlled by them, or 
784 others, and the location in the exhibits of the lease or other 
785 document providing for use of those facilities. 
786      (d)  The year in which each facility will be available for 
787 use by the unit owners or, in the alternative, the maximum 
788 number of unit owners in the project at the time each of all of 
789 the facilities is committed to be completed. 
790      (e)  A general description of the items of personal 
791 property, and the approximate number of each item of personal 
792 property, that the developer is committing to furnish for each 
793 room or other facility or, in the alternative, a representation 
794 as to the minimum amount of expenditure that will be made to 
795 purchase the personal property for the facility. 
796      (f)  If there are leases, a description thereof, including 
797 the length of the term, the rent payable, and a description of 
798 any option to purchase. 

800 Descriptions shall include location, areas, capacities, numbers, 
801 volumes, or sizes and may be stated as approximations or 
802 minimums. 
803      (8)  Recreation lease or associated club membership: 
804      (a)  If any recreational facilities or other facilities 
805 offered by the developer and available to, or to be used by, 
806 unit owners are to be leased or have club membership associated, 
807 the following statement in conspicuous type shall be included: 
810 CONDOMINIUM. There shall be a reference to the location in the 
811 disclosure materials where the recreation lease or club 
812 membership is described in detail. 
813      (b)  If it is mandatory that unit owners pay a fee, rent, 
814 dues, or other charges under a recreational facilities lease or 
815 club membership for the use of facilities, there shall be in 
816 conspicuous type the applicable statement: 
825      4.  A similar statement of the nature of the organization 
826 or the manner in which the use rights are created, and that unit 
827 owners are required to pay. 

829 Immediately following the applicable statement, the location in 
830 the disclosure materials where the development is described in 
831 detail shall be stated. 
832      (c)  If the developer, or any other person other than the 
833 unit owners and other persons having use rights in the 
834 facilities, reserves, or is entitled to receive, any rent, fee, 
835 or other payment for the use of the facilities, then there shall 
836 be the following statement in conspicuous type: THE UNIT OWNERS 
839 following this statement, the location in the disclosure 
840 materials where the rent or land use fees are described in 
841 detail shall be stated. 
842      (d)  If, in any recreation format, whether leasehold, club, 
843 or other, any person other than the association has the right to 
844 a lien on the units to secure the payment of assessments, rent, 
845 or other exactions, there shall appear a statement in 
846 conspicuous type in substantially the following form: 

857 Immediately following the applicable statement, the location in 
858 the disclosure materials where the lien or lien right is 
859 described in detail shall be stated. 
860      (9)  If the developer or any other person has the right to 
861 increase or add to the recreational facilities at any time after 
862 the establishment of the condominium whose unit owners have use 
863 rights therein, without the consent of the unit owners or 
864 associations being required, there shall appear a statement in 
865 conspicuous type in substantially the following form: 
867 OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this 
868 statement, the location in the disclosure materials where such 
869 reserved rights are described shall be stated. 
870      (10)  A statement of whether the developer's plan includes 
871 a program of leasing units rather than selling them, or leasing 
872 units and selling them subject to such leases. If so, there 
873 shall be a description of the plan, including the number and 
874 identification of the units and the provisions and term of the 
875 proposed leases, and a statement in boldfaced type that: THE 
877      (11)  The arrangements for management of the association 
878 and maintenance and operation of the condominium property and of 
879 other property that will serve the unit owners of the 
880 condominium property, and a description of the management 
881 contract and all other contracts for these purposes having a 
882 term in excess of 1 year, including the following: 
883      (a)  The names of contracting parties. 
884      (b)  The term of the contract. 
885      (c)  The nature of the services included. 
886      (d)  The compensation, stated on a monthly and annual 
887 basis, and provisions for increases in the compensation. 
888      (e)  A reference to the volumes and pages of the 
889 condominium documents and of the exhibits containing copies of 
890 such contracts. 

892 Copies of all described contracts shall be attached as exhibits. 
893 If there is a contract for the management of the condominium 
894 property, then a statement in conspicuous type in substantially 
895 the following form shall appear, identifying the proposed or 
896 existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR 
898 CONTRACT MANAGER). Immediately following this statement, the 
899 location in the disclosure materials of the contract for 
900 management of the condominium property shall be stated. 
901      (12)  If the developer or any other person or persons other 
902 than the unit owners has the right to retain control of the 
903 board of administration of the association for a period of time 
904 which can exceed 1 year after the closing of the sale of a 
905 majority of the units in that condominium to persons other than 
906 successors or alternate developers, then a statement in 
907 conspicuous type in substantially the following form shall be 
910 HAVE BEEN SOLD. Immediately following this statement, the 
911 location in the disclosure materials where this right to control 
912 is described in detail shall be stated. 
913      (13)  If there are any restrictions upon the sale, 
914 transfer, conveyance, or leasing of a unit, then a statement in 
915 conspicuous type in substantially the following form shall be 
917 CONTROLLED. Immediately following this statement, the location 
918 in the disclosure materials where the restriction, limitation, 
919 or control on the sale, lease, or transfer of units is described 
920 in detail shall be stated. 
921      (14)  If the condominium is part of a phase project, the 
922 following information shall be stated: 
923      (a)  A statement in conspicuous type in substantially the 
925 UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following 
926 this statement, the location in the disclosure materials where 
927 the phasing is described shall be stated. 
928      (b)  A summary of the provisions of the declaration which 
929 provide for the phasing. 
930      (c)  A statement as to whether or not residential buildings 
931 and units which are added to the condominium may be 
932 substantially different from the residential buildings and units 
933 originally in the condominium. If the added residential 
934 buildings and units may be substantially different, there shall 
935 be a general description of the extent to which such added 
936 residential buildings and units may differ, and a statement in 
937 conspicuous type in substantially the following form shall be 
940 UNITS IN THE CONDOMINIUM. Immediately following this statement, 
941 the location in the disclosure materials where the extent to 
942 which added residential buildings and units may substantially 
943 differ is described shall be stated. 
944      (d)  A statement of the maximum number of buildings 
945 containing units, the maximum and minimum numbers of units in 
946 each building, the maximum number of units, and the minimum and 
947 maximum square footage of the units that may be contained within 
948 each parcel of land which may be added to the condominium. 
949      (15)  If a condominium created on or after July 1, 2000, is 
950 or may become part of a multicondominium, the following 
951 information must be provided: 
952      (a)  A statement in conspicuous type in substantially the 
953 following form: THIS CONDOMINIUM IS (MAY BE) PART OF A 
955 (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following 
956 this statement, the location in the prospectus or offering 
957 circular and its exhibits where the multicondominium aspects of 
958 the offering are described must be stated. 
959      (b)  A summary of the provisions in the declaration, 
960 articles of incorporation, and bylaws which establish and 
961 provide for the operation of the multicondominium, including a 
962 statement as to whether unit owners in the condominium will have 
963 the right to use recreational or other facilities located or 
964 planned to be located in other condominiums operated by the same 
965 association, and the manner of sharing the common expenses 
966 related to such facilities. 
967      (c)  A statement of the minimum and maximum number of 
968 condominiums, and the minimum and maximum number of units in 
969 each of those condominiums, which will or may be operated by the 
970 association, and the latest date by which the exact number will 
971 be finally determined. 
972      (d)  A statement as to whether any of the condominiums in 
973 the multicondominium may include units intended to be used for 
974 nonresidential purposes and the purpose or purposes permitted 
975 for such use. 
976      (e)  A general description of the location and approximate 
977 acreage of any land on which any additional condominiums to be 
978 operated by the association may be located. 
979      (16)  If the condominium is created by conversion of 
980 existing improvements, the following information shall be 
981 stated: 
982      (a)  The information required by s. 718.616. 
983      (b)  A caveat that there are no express warranties unless 
984 they are stated in writing by the developer. 
985      (17)  A summary of the restrictions, if any, to be imposed 
986 on units concerning the use of any of the condominium property, 
987 including statements as to whether there are restrictions upon 
988 children and pets, and reference to the volumes and pages of the 
989 condominium documents where such restrictions are found, or if 
990 such restrictions are contained elsewhere, then a copy of the 
991 documents containing the restrictions shall be attached as an 
992 exhibit. 
993      (18)  If there is any land that is offered by the developer 
994 for use by the unit owners and that is neither owned by them nor 
995 leased to them, the association, or any entity controlled by 
996 unit owners and other persons having the use rights to such 
997 land, a statement shall be made as to how such land will serve 
998 the condominium. If any part of such land will serve the 
999 condominium, the statement shall describe the land and the 
1000 nature and term of service, and the declaration or other 
1001 instrument creating such servitude shall be included as an 
1002 exhibit. 
1003      (19)  The manner in which utility and other services, 
1004 including, but not limited to, sewage and waste disposal, water 
1005 supply, and storm drainage, will be provided and the person or 
1006 entity furnishing them. 
1007      (20)  An explanation of the manner in which the 
1008 apportionment of common expenses and ownership of the common 
1009 elements has been determined. 
1010      (21)  An estimated operating budget for the condominium and 
1011 the association, and a schedule of the unit owner's expenses 
1012 shall be attached as an exhibit and shall contain the following 
1013 information: 
1014      (a)  The estimated monthly and annual expenses of the 
1015 condominium and the association that are collected from unit 
1016 owners by assessments. 
1017      (b)  The estimated monthly and annual expenses of each unit 
1018 owner for a unit, other than common expenses paid by all unit 
1019 owners, payable by the unit owner to persons or entities other 
1020 than the association, as well as to the association, including 
1021 fees assessed pursuant to s. 718.113(1) for maintenance of 
1022 limited common elements where such costs are shared only by 
1023 those entitled to use the limited common element, and the total 
1024 estimated monthly and annual expense. There may be excluded from 
1025 this estimate expenses which are not provided for or 
1026 contemplated by the condominium documents, including, but not 
1027 limited to, the costs of private telephone; maintenance of the 
1028 interior of condominium units, which is not the obligation of 
1029 the association; maid or janitorial services privately 
1030 contracted for by the unit owners; utility bills billed directly 
1031 to each unit owner for utility services to his or her unit; 
1032 insurance premiums other than those incurred for policies 
1033 obtained by the condominium; and similar personal expenses of 
1034 the unit owner. A unit owner's estimated payments for 
1035 assessments shall also be stated in the estimated amounts for 
1036 the times when they will be due. 
1037      (c)  The estimated items of expenses of the condominium and 
1038 the association, except as excluded under paragraph (b), 
1039 including, but not limited to, the following items, which shall 
1040 be stated either as an association expense collectible by 
1041 assessments or as unit owners' expenses payable to persons other 
1042 than the association: 
1043      1.  Expenses for the association and condominium: 
1044      a.  Administration of the association. 
1045      b.  Management fees. 
1046      c.  Maintenance. 
1047      d.  Rent for recreational and other commonly used 
1048 facilities. 
1049      e.  Taxes upon association property. 
1050      f.  Taxes upon leased areas. 
1051      g.  Insurance. 
1052      h.  Security provisions. 
1053      i.  Other expenses. 
1054      j.  Operating capital. 
1055      k.  Reserves. 
1056      l.  Fees payable to the division. 
1057      2.  Expenses for a unit owner: 
1058      a.  Rent for the unit, if subject to a lease. 
1059      b.  Rent payable by the unit owner directly to the lessor 
1060 or agent under any recreational lease or lease for the use of 
1061 commonly used facilities, which use and payment is a mandatory 
1062 condition of ownership and is not included in the common expense
1063 or assessments for common maintenance paid by the unit owners to 
1064 the association. 
1065      (d)  The estimated amounts shall be stated for a period of 
1066 at least 12 months and may distinguish between the period prior
1067 to the time unit owners other than the developer elect a 
1068 majority of the board of administration and the period after 
1069 that date. 
1070      (22)  A schedule of estimated closing expenses to be paid 
1071 by a buyer or lessee of a unit and a statement of whether title 
1072 opinion or title insurance policy is available to the buyer and, 
1073 if so, at whose expense. 
1074      (23)  The identity of the developer and the chief operating 
1075 officer or principal directing the creation and sale of the 
1076 condominium and a statement of its and his or her experience in 
1077 this field. 
1078      (24)  Copies of the following, to the extent they are 
1079 applicable, shall be included as exhibits: 
1080      (a)  The declaration of condominium, or the proposed 
1081 declaration if the declaration has not been recorded. 
1082      (b)  The articles of incorporation creating the 
1083 association. 
1084      (c)  The bylaws of the association. 
1085      (d)  The ground lease or other underlying lease of the 
1086 condominium. 
1087      (e)  The management agreement and all maintenance and other 
1088 contracts for management of the association and operation of the 
1089 condominium and facilities used by the unit owners having a 
1090 service term in excess of 1 year. 
1091      (f)  The estimated operating budget for the condominium and 
1092 the required schedule of unit owners' expenses. 
1093      (g)  A copy of the floor plan of the unit and the plot plan 
1094 showing the location of the residential buildings and the 
1095 recreation and other common areas. 
1096      (h)  The lease of recreational and other facilities that 
1097 will be used only by unit owners of the subject condominium. 
1098      (i)  The lease of facilities used by owners and others. 
1099      (j) The form of unit lease, if the offer is of a 
1100 leasehold. 
1101      (k)  A declaration of servitude of properties serving the 
1102 condominium but not owned by unit owners or leased to them or 
1103 the association. 
1104      (l)  The statement of condition of the existing building or 
1105 buildings, if the offering is of units in an operation being 
1106 converted to condominium ownership. 
1107      (m)  The statement of inspection for termite damage and 
1108 treatment of the existing improvements, if the condominium is a 
1109 conversion. 
1110      (n)  The form of agreement for sale or lease of units. 
1111      (o)  A copy of the agreement for escrow of payments made to 
1112 the developer prior to closing. 
1113      (p)  A copy of the documents containing any restrictions on 
1114 use of the property required by subsection (17). 
1115      (25)  Any prospectus or offering circular complying, prior 
1116 to the effective date of this act, with the provisions of former 
1117 ss. 711.69 and 711.802 may continue to be used without amendment 
1118 or may be amended to comply with the provisions of this chapter. 
1119      (26)  A brief narrative description of the location and 
1120 effect of all existing and intended easements located or to be 
1121 located on the condominium property other than those described 
1122 in the declaration. 
1123      (27)  If the developer is required by state or local 
1124 authorities to obtain acceptance or approval of any dock or 
1125 marina facilities intended to serve the condominium, a copy of 
1126 any such acceptance or approval acquired by the time of filing 
1127 with the division under s. 718.502(1) or a statement that such 
1128 acceptance or approval has not been acquired or received. 
1129      (28)  Evidence demonstrating that the developer has an 
1130 ownership, leasehold, or contractual interest in the land upon 
1131 which the condominium is to be developed. 
1132      (29)  Whether the association is currently a party of
1133 record in litigation in which the association may face liability
1134 of $25,000 or more and, if so, the nature and title of that 
1135 litigation.
1136      Section 17.  All of the records, personnel, property, and
1137 unexpended balances of appropriations, allocations, or other
1138 funds for the administration of part VIII of chapter 468, 
1139 Florida Statutes, shall be transferred by a type two transfer as
1140 defined in s. 20.06(2), Florida Statutes, from the Division of 
1141 Professions of the Department of Business and Professional
1142 Regulation to the Division of Florida Land Sales, Condominiums,
1143 and Mobile Homes of the Department of Business and Professional
1144 Regulation. 
1145      Section 18.  The Department of Business and Professional
1146 Regulation may continue to prosecute any existing legal
1147 proceedings and related administrative cases that are in
1148 existence on the effective date of this act.
1149      Section 19.  Section 718.510, Florida Statutes, is created 
1150 to read: 
1151      718.510  Condominium Owners' Bill of Rights.--The division
1152 shall adopt rules to provide for a brochure entitled
1153 "Condominium Owners' Bill of Rights," which shall explain what
1154 rights are afforded to condominium owners and potential
1155 purchasers of condominiums under this chapter. It is the intent
1156 of the Legislature that this brochure be widely distributed and
1157 as conveniently available as possible.
1158      Section 20.  This act shall take effect upon becoming a 
1159 law. 

CODING: Words stricken are deletions; words underlined are additions.