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 - Favorable With Committee Substitute ( see
HB1223 CS )
State Administration - On Committee
agenda -- 03/29/04, 8:00 am, Reed Hall
READ
STAFF ANALYSIS
Subcommittee on Commerce & Local Affairs Appropriations
Appropriations
Now in Business Regulation - For more
info see:
COMMITTEE
ON BUSINESS REGULATION
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
VOTE:
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 )
COMMITTEE SUBSTITUTE
CODING: Words stricken
are deletions; words underlined are
additions.
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
CHAMBER ACTION
The Committee on Business Regulation recommends
the following:
Committee Substitute
Remove the entire bill and insert:
A bill to be entitled
An act relating to condominium associations;
amending s.
718.103, F.S.; defining the term "immediate
family
member"; amending s. 718.110, F.S.; providing
for
grandfathering and modification of rental
rights;
providing for certain application of the
amendment of unit
owners' rental rights; providing certain
voting and
approval criteria for amendments depriving
owners of
certain rights; amending s. 718.112, F.S.;
requiring super
majority votes to reduce certain required
reserves;
creating s. 718.1125, F.S.; imposing eligibility
restrictions on association members; amending
s. 718.116,
F.S.; increasing percentage of mortgage
debt used as a
limit on liability in certain foreclosure
actions;
requiring notice of intent to record a
claim of lien;
designating liens inoperative and unenforceable
if
requirements are not fulfilled; changing
priority of
claims to which payments for delinquent
assessments are
made; providing that certain late fees
and interest shall
Page 2
not be the sole basis for a lien; providing
limitations on
recording a claim of lien; providing criminal
penalties
for willful and malicious imposition,
enforcement, or
overvaluation of a lien; requiring a super
majority board
approval for excess funds from a special
assessment to be
credited against future assessments; creating
s. 718.130,
F.S.; providing a limitation on certain
attorney's fees;
amending s. 718.3025, F.S.; requiring
additional
disclosures for contract validity or enforceability;
providing that certain business entities
may be contracted
by the association to provide certain
services if approved
by a majority of all unit owners; amending
s. 718.3026,
F.S.; deleting a provision authorizing
associations with
fewer than 100 units to opt out of certain
products and
services contracting requirements; lowering
a threshold
percentage to require competitive bidding;
requiring a
minimum number of bids; specifying nonapplication
to
certain contracts; amending s. 718.501,
F.S.; requiring
mandatory training for certain board members;
creating s.
718.5011, F.S.; creating an Office of
the Condominium
Ombudsman within the Division of Florida
Land Sales
Condominiums, and Mobile Homes; providing
for the office's
independence from the division; authorizing
the Joint
Legislative Auditing Committee to appoint
the ombudsman;
requiring the ombudsman to be an attorney;
providing for
the filling of a vacant ombudsman position;
requiring the
ombudsman and staff to subscribe to the
oath of office
required of state officers; prohibiting
the ombudsman and
Page 3 of 42
staff from engaging in any other profession,
serving as a
representative or employee of any political
party, or
receiving remuneration for activities
on behalf of
political candidates; prohibiting the
ombudsman and staff
from seeking public office unless resigned
from the Office
of the Condominium Ombudsman; providing
requirements and
limitations for office staff; creating
s. 718.5012, F.S.;
providing for powers and duties of the
ombudsman; creating
s. 718.5013, F.S.; providing for compensation
and expenses
for the office; authorizing the ombudsman
to employ
clerical and technical assistants for
certain purposes;
creating s. 718.5014, F.S.; providing
for the location of
the ombudsman's office; creating s. 718.5015,
F.S.;
creating the Advisory Council on Condominiums;
providing
for membership, functions, meetings, and
offices of the
council; amending s. 718.504, F.S.; revising
provisions
relating to certain prospectus and offering
circulars;
requiring developers of certain condominiums
to provide a
prospectus including a "Frequently Asked
Questions and
Answers" document; requiring the document
to contain
certain information; reducing the threshold
amount to be
required to be disclosed in controversy
for litigation;
requiring certain information to be included
in the
prospectus or offering circular; providing
for a type two
transfer of all records, personnel, property,
and
unexpended balances of appropriations,
allocations, o
other funds for the administration of
pt. VIII of ch. 468,
F.S., from the Division of Professions
to the Division of
Page 4 of 42
Florida Land Sales, Condominiums, and Mobile
Homes within
the Department of Business and Professional
Regulation;
preserving the department's authority
to pursue certain
remedies; creating s. 718.510, F.S.; requiring
the
creation of a Condominium Owners' Bill
of Rights;
providing an effective date.
Be It Enacted by the Legislature of the
State of Florida: 87
Section 1. Subsections (18) through (30)
of section
718.103, Florida Statutes, are renumbered
as subsections (19)
through (31), respectively, and a new
subsection (18) is added
to said section, to read:
718.103 Definitions.--As used in this
chapter, the term:
(18) "Immediate
family member" means a parent, child,
spouse, sibling,
grandparent, grandchild, uncle, aunt, niece,
nephew, great-uncle,
great-aunt, great-nephew, great-niece,
first cousin,
or second cousin by blood, marriage, or adoption
and includes
half and step relatives.
Section 2. Subsection (13) is added to
section 718.110,
Florida Statutes, to read:
718.110 Amendment of declaration; correction
of error or
omission in declaration by circuit court;
grandfathering
and
modification
of certain rights.-
(13)(a) Unless
expressly stated in the amendment, any
amendment restricting
unit owners' rights relating to the rental
of units, keeping
of pets, or allocation of parking spaces shall
Page 5 of 42
apply only to
unit owners who purchase their unit after the
effective date
of that amendment.
(b) Notwithstanding
any other provision of law, or of the
declaration or
bylaws, if an amendment expressly deprives
current unit
owners of any part of their rights mentioned in
subsection (a),
it must be approved by at least three-fourths of
the voting interests.
A declaration or an amendment to a
declaration may
provide for a higher super majority vote
requirement.
Section 3. Paragraph (f) of subsection
(2) of section
718.112, Florida Statutes, is amended
to read:
718.112 Bylaws.--
(2) REQUIRED PROVISIONS.--The bylaws shall
provide for the
following and, if they do not do so, shall
be deemed to include
the following:
(f) Annual budget.--
1. The proposed annual budget of common
expenses shall be
detailed and shall show the amounts budgeted
by accounts and
expense classifications, including, if
applicable, but not
limited to, those expenses listed in s.
718.504(21). A
multicondominium association shall adopt
a separate budget of
common expenses for each condominium the
association operates
and shall adopt a separate budget of common
expenses for the
association. In addition, if the association
maintains limited
common elements with the cost to be shared
only by those
entitled to use the limited common elements
as provided for in
s. 718.113(1), the budget or a schedule
attached thereto shall
show amounts budgeted therefor. If, after
turnover of control of
Page 6 of 42
the association to the unit owners, any
of the expenses listed
in s. 718.504(21) are not applicable,
they need not be listed.
2. In addition to annual operating expenses,
the budget
shall include reserve accounts for capital
expenditures and
deferred maintenance. These accounts shall
include, but are not
limited to, roof replacement, building
painting, and pavement
resurfacing, regardless of the amount
of deferred maintenance
expense or replacement cost, and for any
other item for which
the deferred maintenance expense or replacement
cost exceeds
$10,000. The amount to be reserved shall
be computed by means of
a formula which is based upon estimated
remaining useful life
and estimated replacement cost or deferred
maintenance expense
of each reserve item. The association
may adjust replacement
reserve assessments annually to take into
account any changes in
estimates or extension of the useful life
of a reserve item
caused by deferred maintenance. This subsection
does not apply
to an adopted budget in which the members
of an association have
determined, by a two-thirdsmajority
vote at a duly called
meeting of the association, to provide
no reserves or less
reserves than required by this subsection.
However, prior to
turnover of control of an association
by a developer to unit
owners other than a developer pursuant
to s. 718.301, the
developer may vote to waive the reserves
or reduce the funding
of reserves for the first 2 fiscal years
of the association's
operation, beginning with the fiscal year
in which the initial
declaration is recorded, after which time
reserves may be waived
or reduced only upon the vote of a majority
of all nondeveloper
voting interests voting in person or by
limited proxy at a duly
Page 7 of 42
called meeting of the association. If a
meeting of the unit
owners has been called to determine whether
to waive or reduce
the funding of reserves, and no such result
is achieved or a
quorum is not attained, the reserves as
included in the budget
shall go into effect. After the turnover,
the developer may vote
its voting interest to waive or reduce
the funding of reserves.
3. Reserve funds and any interest accruing
thereon shall
remain in the reserve account or accounts,
and shall be used
only for authorized reserve expenditures
unless their use for
other purposes is approved in advance
by a majority vote at a
duly called meeting of the association.
Prior to turnover of
control of an association by a developer
to unit owners other
than the developer pursuant to s. 718.301,
the developer-
controlled association shall not vote
to use reserves for
purposes other than that for which they
were intended without
the approval of a majority of all nondeveloper
voting interests,
voting in person or by limited proxy at
a duly called meeting of
the association.
4. In a multicondominium association,
the only voting
interests which are eligible to vote on
questions that involve
waiving or reducing the funding of reserves,
or using existing
reserve funds for purposes other than
purposes for which the
reserves were intended, are the voting
interests of the units
subject to assessment to fund the reserves
in question.
Section 4. Section 718.1125, Florida Statutes,
is created
to read:
Page 8 of 42
718.1125 Board
eligibility restrictions.--Notwithstanding
any provision
of the declaration or bylaws, no one may serve on
the board of
the same association:
(1) Alongside
an immediate family member who is also on
that board, except
if approved by a majority of the present unit
owners voting.
If this subsection is violated, the later-elected
immediate family
member's election shall be deemed void. Good-
faith ignorance
of such a relationship shall prevent the
operation of
this subsection, but only until such a relationship
is discovered.
(2) Unless actually
resident in the condominium for at
least 3 months
out of the year prior to the annual meeting at
which he or she
was elected.
Section 5. Paragraphs (b) and (c) of subsection
(1),
subsection (3), paragraphs (a) and (b)
of subsection (5),
paragraph (b) of subsection (6), and subsection
(10) of section
718.116, Florida Statutes, are amended,
and paragraph (e) is
added to subsection (6) of said section,
to read:
718.116 Assessments; liability; lien and
priority;
interest; collection.--
(1)
(b) The liability of a first mortgagee
or its successor or
assignees who acquire title to a unit
by foreclosure or by deed
in lieu of foreclosure for the unpaid
assessments that became
due prior to the mortgagee's acquisition
of title is limited to
the lesser of:
1. The unit's unpaid common expenses and
regular periodic
assessments which accrued or came due
during the 6 months
Page 9 of 42
immediately preceding the acquisition of
title and for which
payment in full has not been received
by the association; or
2. FiveOne
percent of the original mortgage debt. The
provisions of this paragraph apply only
if the first mortgagee
joined the association as a defendant
in the foreclosure action.
Joinder of the association is not required
if, on the date the
complaint is filed, the association was
dissolved or did not
maintain an office or agent for service
of process at a location
which was known to or reasonably discoverable
by the mortgagee.
(c) The person acquiring title shall pay
the amount owed
to the association within 30 days after
transfer of title.
Failure to pay the full amount when due
shall entitle the
association to record a claim of lien
against the parcel and
proceed in the same manner as provided
in this section for the
collection of unpaid assessments. Such
a lien may not be
recorded until
30 days after the association posts notice by
certified mail
to the person acquiring title of its intent to
record the lien.
(3) Assessments and installments on them
which are not
paid when due bear interest at the rate
provided in the
declaration, from the due date until paid.
This rate may not
exceed the rate allowed by law, and, if
no rate is provided in
the declaration, interest shall accrue
at the rate of 18 percen
per year. Also, if the declaration or
bylaws so provide, the
association may charge an administrative
late fee in addition to
such interest, in an amount not to exceed
the greater of $25 or
5 percent of each installment of the assessment
for each
delinquent installment that the payment
is late. Any payment
Page 10 of 42
received by an association shall be applied
first to the
delinquent assessment,
then to any costs and reasonable
attorney's fees incurred in collection,
then to any interest
accrued by the association, and
then to any administrative late
fee, then
to any costs and reasonable attorney's fees incurred
in collection,
and then to the delinquent assessment. The
foregoing shall be applicable notwithstanding
any restrictive
endorsement, designation, or instruction
placed on or
accompanying a payment. A late fee shall
not be subject to the
provisions in chapter 687 or s. 718.303(3).
(5)(a) The association has a lien on each
condominium
parcel to secure the payment of assessments.
No
administrative
late fee or interest
shall be the sole basis for a lien. Except
as otherwise provided in subsection (1)
and as set forth below,
the lien is effective from and shall relate
back to the
recording of the original declaration
of condominium, or, in the
case of lien on a parcel located in a
phase condominium, the
last to occur of the recording of the
original declaration or
amendment thereto creating the parcel.
However, as to first
mortgages of record, the lien is effective
from and after
recording of a claim of lien in the public
records of the county
in which the condominium parcel is located.
Nothing in this
subsection shall be construed to bestow
upon any lien, mortgage,
or certified judgment of record on April
1, 1992, including the
lien for unpaid assessments created herein,
a priority which, by
law, the lien, mortgage, or judgment did
not have before that
date.
Page 11 of 42
(b) To be valid, a claim of lien must state
the
description of the condominium parcel,
the name of the record
owner, the name and address of the association,
the amount due,
and the due dates. It must be executed
and acknowledged by an
officer or authorized agent of the association.
The
claim of
lien may not
be recorded until 30 days after the association
posts notice
of its intent to record the claim by certified or
registered mail
to the record owner or delivers such notice to
the record owner
by hand. Failure to comply with this
requirement renders
the claim of lien inoperative and
unenforceable
until compliance. No such lien shall be effective
longer than 1 year after the claim of
lien was recorded unless
within that time, an action to enforce
the lien is commenced.
The 1-year period shall automatically
be extended for any length
of time during which the association is
prevented from filing a
foreclosure action by an automatic stay
resulting from a
bankruptcy petition filed by the parcel
owner or any other
person claiming an interest in the parcel.
The claim of lien
shall secure all unpaid assessments which
are due and which may
accrue subsequent to the recording of
the claim of lien and
prior to the entry of a certificate of
title, as well as
interest and all reasonable costs and
attorney's fees incurred
by the association incident to the collection
process. Upon
payment in full, the person making the
payment is entitled to a
satisfaction of the lien.
(6)
(b) No foreclosure judgment may be entered
until at least
30 days after the association gives written
notice to the unit
Page 12 of 42
owner of its intention to foreclose its
lien to collect the
unpaid assessments. If this notice is
not given at least 30 days
before the foreclosure action is filed,
and if the unpaid
assessments, including those coming due
after the claim of lien
is recorded, are paid before the entry
of a final judgment of
foreclosure or
money judgment, the association shall not recover
attorney's fees or costs. The notice must
be given by delivery
of a copy of it to the unit owner or by
certified or registered
mail, return receipt requested, addressed
to the unit owner at
his or her last known address; and, upon
such mailing, the
notice shall be deemed to have been given,
and the court shall
proceed with the foreclosure action and
may award attorney's
fees and costs as permitted by law. The
notice requirements of
this subsection are satisfied if the unit
owner records a notice
of contest of lien as provided in subsection
(5). The notice
requirements of this subsection do not
apply if an action to
foreclose a mortgage on the condominium
unit is pending before
any court; if the rights of the association
would be affected by
such foreclosure; and if actual, constructive,
or substitute
service of process has been made on the
unit owner.
(e) A board member
or officer of an association, or his or
her immediate
family member, who willfully and maliciously acts
to impose, enforce,
or increase the overall value of a lien for
the payment of
assessments with the intent to purchase or assist
in the purchase
of a condominium unit at foreclosure commits a
misdemeanor of
the first degree, punishable as provided in s.
775.082 or s.
775.083.
Page 13 of 42
(10) The specific purpose or purposes of
any special
assessment approved in accordance with
the condominium documents
shall be set forth in a written notice
of such assessment sent
or delivered to each unit owner. The funds
collected pursuant to
a special assessment shall be used only
for the specific purpose
or purposes set forth in such notice.
However, upon completion
of such specific purpose or purposes,
any excess funds will be
considered common surplus, and may,
at the discretion of the
board, either
be returned to the unit owners or, upon approval
of two-thirds
of the board, be applied as a credit toward future
assessments.
Section 6. Section 718.130, Florida Statutes,
is created
to read:
718.130 Limitation
on attorney's fees.--Notwithstanding
any other provision
of law, an attorney may not charge in excess
of $75 per letter
for correspondence, collection efforts,
litigation, or
other business arising under this chapter.
Section 7. Paragraph (e) of subsection
(1) of section
718.3025, Florida Statutes, is amended,
subsection (4) of said
section is renumbered as subsection (5),
and a new subsection
(4) is added to said section, to read:
718.3025 Agreements for operation, maintenance,
or
management of condominiums; specific requirements.--
(1) No written contract between a party
contracting to
provide maintenance or management services
and an association
which contract provides for operation,
maintenance, or
management of a condominium association
or property serving the
Page 14 of 42
unit owners of a condominium shall be valid
or enforceable
unless the contract:
(e) Discloses any financial or ownership
interest which
the developer, if the developer is in
control of the
association, any
officer of the association, or any member of
the board
holds with regard to the party contracting to provide
maintenance or management services.
(4) A business
entity of whom an association's board
member or officer
or his or her immediate family member is an
employee, or
in which an association's board member or officer
or any or all
of his or her immediate family members together
hold an ownership
interest of 10 percent or more, may be
contracted to
provide maintenance or management services to that
association only
if approved by a majority of all unit owners. A
contract in violation
of this subsection shall be void.
Section 8. Section 718.3026, Florida Statutes,
is amended
to read:
718.3026 Contracts for products and services;
in writing;
bids; exceptions.--Associations
with less than 100 units may opt
out of the
provisions of this section if two-thirds of the unit
owners vote
to do so, which opt-out may be accomplished by a
proxy specifically
setting forth the exception from this
section.
(1) All contracts as further described
herein or any
contract that is not to be fully performed
within 1 year after
the making thereof, for the purchase,
lease, or renting of
materials or equipment to be used by the
association in
accomplishing its purposes under this
chapter, and all contracts
Page 15 of 42
for the provision of services, shall be
in writing. If a
contract for the purchase, lease, or renting
of materials or
equipment, or for the provision of services,
requires payment by
the association on behalf of any condominium
operated by the
association in the aggregate that exceeds
2.55
percent of the
total annual budget of the association,
including reserves, the
association shall obtain no
fewer than three competitive bids
for the materials, equipment, or services.
Nothing contained
herein shall be construed to require the
association to accept
the lowest bid.
(2)(a)1. Notwithstanding the foregoing,
contracts with
employees of the association,
and contracts for attorney,
accountant,
architect, community association manager, timeshare
management
firm, engineering, and landscape architect services
are not subject to the provisions of this
section.
2. A contract executed before January
1, 1992, and any
renewal thereof, is not subject to the
competitive bid
requirements of this section. If a contract
was awarded under
the competitive bid procedures of this
section, any renewal of
that contract is not subject to such competitive
bid
requirements if the contract contains
a provision that allows
the board to cancel the contract on 30
days' notice. Materials,
equipment, or services provided to a condominium
under a local
government franchise agreement by a franchise
holder are not
subject to the competitive bid requirements
of this section. A
contract with a manager, if made by a
competitive bid, may be
made for up to 3 years. A condominium
whose declaration or
bylaws provides for competitive bidding
for services may operate
Page 16 of 42
under the provisions of that declaration
or bylaws in lieu of
this section if those provisions are not
less stringent than the
requirements of this section.
(b) Nothing contained herein is intended
to limit the
ability of an association to obtain needed
products and services
in an emergency.
(c) This section shall not apply if the
business entity
with which the association desires to
enter into a contract is
the only source of supply within the county
serving the
association.
(d) Nothing contained herein shall excuse
a party
contracting to provide maintenance or
management services from
compliance with s. 718.3025.
Section 9. Paragraph (j) of subsection
(1) of section
718.501, Florida Statutes, is amended
to read:
718.501 Powers and duties of Division
of Florida Land
Sales, Condominiums, and Mobile Homes.--
(1) The Division of Florida Land Sales,
Condominiums, and
Mobile Homes of the Department of Business
and Professional
Regulation, referred to as the "division"
in this part, in
addition to other powers and duties prescribed
by chapter 498,
has the power to enforce and ensure compliance
with the
provisions of this chapter and rules promulgated
pursuant hereto
relating to the development, construction,
sale, lease,
ownership, operation, and management of
residential condominium
units. In performing its duties, the division
has the following
powers and duties:
Page 17 of 42
(j) The division shall provide training
programs for
condominium association board members
and unit owners. Training
shall be mandatory
for newly elected board members and for
members currently
serving on a board who have not previously
attended training.
Section 10. Section 718.5011, Florida
Statutes, is created
to read:
718.5011 Ombudsman;
appointment; oath; restrictions on
ombudsman and
his or her employees.--
(1) There is
created an Office of the Condominium
Ombudsman that
for administrative purposes shall be located
within the Division
of Florida Land Sales, Condominiums, and
Mobile Homes.
However, the office shall be independent of the
division.
(2) The Joint
Legislative Auditing Committee shall appoint
an ombudsman
by majority vote of the members of that committee.
The ombudsman
shall be an attorney admitted to practice before
the Florida Supreme
Court and shall serve at the pleasure of the
Joint Legislative
Auditing Committee. Vacancies in the office
shall be filled
in the same manner as the original appointment.
The ombudsman
and attorneys under his staff shall take and
subscribe to
the oath of office required of state officers by
the State Constitution.
No officer or full-time employee of the
ombudsman's office
shall actively engage in any other business
or profession;
serve as the representative of any political
party, executive
committee, or other governing body thereof;
serve as an executive,
officer, or employee of any political
party, committee,
organization, or association; receive
Page 18 of 42
remuneration for
activities on behalf of any candidate for
public office;
or engage on behalf of any candidate for public
office in the
solicitation of votes or other activities on
behalf of such
candidacy. Neither the ombudsman nor any employee
of his or her
office shall become a candidate for election to
public office
unless he or she first resigns from his or her
office or employment.
Section 11. Section 718.5012, Florida
Statutes, is created
to read:
718.5012 Ombudsman;
powers and duties.--The ombudsman
shall have such
powers as are necessary to carry out the duties
of his or her
office, including, but not limited to, the
following specific
powers:
(1) To have access
to and use of all files and records of
the division
and of all condominium associations, by subpoena if
necessary.
(2) To conduct
onsite inspections of condominiums,
including surprise
inspections in accordance with rules
providing for
such inspections.
(3) To prepare
and issue reports, recommendations, and
proposed orders
to the division, the Governor, the Advisory
Council on Condominiums,
the President of the Senate, the
Speaker of the
House of Representatives, and minority leaders of
the Senate and
the House of Representatives on any matter or
subject within
the jurisdiction of the division, and to make
such recommendations
as he or she deems appropriate for
legislation relative
to division procedures, rules,
jurisdiction,
personnel, and functions.
Page 19 of 42
(4) To act as
liaison between the division and unit
owners, and to
assist any unit owner in the preparation and
filing of a complaint
to be investigated by the division. The
ombudsman shall
establish procedures for receiving complaints.
Any complaint
deemed valid by the ombudsman and properly falling
within the jurisdiction
of the division and requiring remedial
action shall
be identified and promptly filed with the division.
Upon the concurrence
of the division, the ombudsman shall
establish target
dates for concluding an investigation and for
taking appropriate
specified remedial action. The ombudsman may
recommend that
the division initiate enforcement proceedings in
accordance with
chapter 120. The department and the ombudsman
may take findings
of a criminal nature and submit them as
evidence to the
state attorney's office and work with such
office to bring
charges against the alleged parties involved.
(5) To monitor,
investigate, and review condominium
elections and
meetings. In addition, the ombudsman shall:
(a) Prove to
the division, by clear and convincing
evidence, that
a member of a condominium board has attempted,
engaged in, conspired
to engage in, or willfully and knowingly
benefited from
electoral fraud in order for the division to
order such member
removed from office. Such an order of removal
shall also prohibit
such member from running for election to any
office of the
condominium board in the state for 4 years. If any
person is so
removed from office twice, such person shall be
barred for life
from serving on a condominium board. Factual
findings forming
the basis for an order of removal shall be
subject to judicial
review only for abuse of discretion.
Page 20 of 42
(b) Jointly, with
the division, adopt rules governing
removal proceedings.
Such rules shall, at a minimum, provide the
accused board
member with adequate notice, opportunity to be
heard, the right
to confront and cross-examine witnesses, the
right to submit
rebuttal evidence, and the right to counsel.
Neither this subsection
nor rules adopted to implement it shall
be construed
to require provision of counsel or witnesses, or
other assistance,
at public expense.
(6) To resolve
disputes among unit owners by ordering
mediation or
arbitration in the same manner as the division.
(7) To make recommendations
to the division for changes in
rules and procedures
for the filing, investigation, and
resolution of
complaints filed by unit owners.
Section 12. Section 718.5013, Florida
Statutes, is created
to read:
718.5013 Ombudsman;
compensation and expenses.--
(1) All costs
and expenses incurred by the Office of the
Condominium Ombudsman
shall be paid from disbursements from the
Division of Florida
Land Sales, Condominiums, and Mobile Homes
Trust Fund and
shall require approval of the Joint Legislative
Auditing Committee.
(2) The Joint
Legislative Auditing Committee may authorize
the ombudsman
to employ clerical and technical assistants whose
qualifications,
duties, and responsibilities the committee shall
from time to
time prescribe, and to enter into such contracts as
necessary. The
committee may authorize retention of the services
of additional
attorneys or experts to the extent that the best
Page 21 of 42
interests of the
people of the state will be better served
thereby, including
the retention of expert witnesses and other
technical personnel
for participation in contested proceedings
before the division.
Section 13. Section 718.5014, Florida
Statutes, is created
to read:
718.5014 Ombudsman;
location.--The ombudsman shall
maintain his
or her principal office in Leon County on the
premises of the
division or, if suitable space cannot be
provided there,
at such other place convenient to the offices of
the division
as will enable the ombudsman to expeditiously carry
out the duties
and functions of his or her office. The ombudsman
may establish
branch offices upon the concurrence of the Joint
Legislative Auditing
Committee
Section 14. Section 718.5015, Florida
Statutes, is created
to read:
718.5015 Advisory
council; membership functions.--
(1) There is
created the Advisory Council on Condominiums.
The council shall
consist of seven members. Two members shall be
appointed by
the Speaker of the House of Representatives, two
members shall
be appointed by the President of the Senate, and
three members
shall be appointed by the Governor. At least one
member shall
represent timeshare condominiums. Members shall be
appointed to
2-year terms; however, of the initial appointments,
one of the members
appointed by each of the Governor, the
Speaker of the
House of Representatives, and the President of
the Senate shall
be appointed to 1-year terms. In addition to
these appointed
members, the director of the Division of Florida
Page 22 of 42
Land Sales, Condominiums,
and Mobile Homes shall serve as an ex
officio member
of the council. It is the intent of the
Legislature that
the persons appointed to this council represent
a cross-section
of persons interested in condominium issues. For
administrative
purposes, the council shall be located in the
Division of Florida
Land Sales, Condominiums, and Mobile Homes
of the Department
of Business and Professional Regulation.
Members of the
council shall serve without compensation, but
shall be entitled
to receive per diem and travel expenses
pursuant to s.
112.061 while on official business.
(2) The functions
of the advisory council shall be to:
(a) Receive input
from the public regarding issues of
concern with
respect to condominiums and to receive
recommendations
for any changes to be made in the condominium
law. The issues
that the council shall consider shall include,
but shall not
be limited to, the rights and responsibilities of
the unit owners
in relation to the rights and responsibilities
of the association.
(b) Review, evaluate,
and advise the division concerning
revisions and
adoption of rules affecting condominiums.
(c) Recommend
improvements, if needed, in the education
programs offered
by the division.
(3) The council
is authorized to elect a chair and vice
chair and such
other offices as it may deem advisable. The
council shall
meet at the call of its chair, at the request of a
majority of its
membership, at the request of the division, or
at such times
as may be prescribed by its rules. A majority of
the members of
the council shall constitute a quorum for the
Page 23 of 42
transaction of
all business and the carrying out of the duties
of the council.
Section 15. Section 718.504, Florida Statutes,
is amended
to read:
718.504 Prospectus or offering circular;
"Frequently Asked
Questions and
Answers".--Every developer of a residential
condominium which contains more than 20
residential units, or
which is part of a group of residential
condominiums which will
be served by property to be used in common
by unit owners of
more than 20 residential units, shall
prepare a prospectus or
offering circular and file it with the
Division of Florida Land
Sales, Condominiums, and Mobile Homes
prior to entering into an
enforceable contract of purchase and sale
of any unit or lease
of a unit for more than 5 years and shall
furnish a copy of the
prospectus or offering circular to each
buyer. In addition to
the prospectus or offering circular, any
prospective each
buyer
from the developer
or a current unit owner shall be furnished a
separate documentpage
entitled "Frequently Asked Questions and
Answers," which shall be in accordance
with a format approved by
the division and a copy of the financial
information required by
s. 718.111. This document
page
shall, in readable language,
inform prospective purchasers regarding
their voting rights and
unit use restrictions, including restrictions
on the leasing of
a unit; shall indicate whether and in
what amount the unit
owners or the association is obligated
to pay rent or land use
fees for recreational or other commonly
used facilities; shall
contain a statement identifying that amount
of assessment which,
pursuant to the budget, would be levied
upon each unit type,
Page 24 of 42
exclusive of any special assessments, and
which shall further
identify the basis upon which assessments
are levied, whether
monthly, quarterly, or otherwise; shall
state and identify any
court cases in which the association is
currently a party of
record in which the association may face
liability in excess of
$25,000 or more$100,000;
and which shall further state whether
membership in a recreational facilities
association is
mandatory, and if so, shall identify the
fees currently charged
per unit type. The division shall by rule
require such other
disclosure as in its judgment will assist
prospective
purchasers. The prospectus or offering
circular may include more
than one condominium, although not all
such units are being
offered for sale as of the date of the
prospectus or offering
circular. The prospectus or offering circular
must contain the
following information:
(1) The front cover or the first page
must contain only:
(a) The name of the condominium.
(b) The following statements in conspicuous
type:
1. THIS PROSPECTUS (OFFERING CIRCULAR)
CONTAINS IMPORTANT
MATTERS TO BE CONSIDERED IN ACQUIRING
A CONDOMINIUM UNIT.
2. THE STATEMENTS CONTAINED HEREIN ARE
ONLY SUMMARY IN
NATURE. A PROSPECTIVE PURCHASER SHOULD
REFER TO ALL REFERENCES,
ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS,
AND SALES
MATERIALS.
3. ORAL REPRESENTATIONS CANNOT BE RELIED
UPON AS CORRECTLY
STATING THE REPRESENTATIONS OF THE DEVELOPER.
REFER TO THIS
PROSPECTUS (OFFERING CIRCULAR) AND ITS
EXHIBITS FOR CORRECT
REPRESENTATIONS.
Page 25 of 42
(2) Summary: The next page must contain
all statements
required to be in conspicuous type in
the prospectus or offering
circular.
(3) A separate index of the contents and
exhibits of the
prospectus.
(4) Beginning on the first page of the
text (not including
the summary and index), a description
of the condominium,
including, but not limited to, the following
information:
(a) Its name and location.
(b) A description of the condominium property,
including,
without limitation:
1. The number of buildings, the number
of units in each
building, the number of bathrooms and
bedrooms in each unit, and
the total number of units, if the condominium
is not a phase
condominium, or the maximum number of
buildings that may be
contained within the condominium, the
minimum and maximum
numbers of units in each building, the
minimum and maximum
numbers of bathrooms and bedrooms that
may be contained in each
unit, and the maximum number of units
that may be contained
within the condominium, if the condominium
is a phase
condominium.
2. The page in the condominium documents
where a copy of
the plot plan and survey of the condominium
is located
3. The estimated latest date of completion
of
constructing, finishing, and equipping.
In lieu of a date, the
description shall include a statement
that the estimated date of
completion of the condominium is in the
purchase agreement and a
Page 26 of 42
reference to the article or paragraph containing
that
information.
(c) The maximum number of units that will
use facilities
in common with the condominium. If the
maximum number of units
will vary, a description of the basis
for variation and the
minimum amount of dollars per unit to
be spent for additional
recreational facilities or enlargement
of such facilities. If
the addition or enlargement of facilities
will result in a
material increase of a unit owner's maintenance
expense or
rental expense, if any, the maximum increase
and limitations
thereon shall be stated.
(5)(a) A statement in conspicuous type
describing whether
the condominium is created and being sold
as fee simple
interests or as leasehold interests. If
the condominium is
created or being sold on a leasehold,
the location of the lease
in the disclosure materials shall be stated.
(b) If timeshare estates are or may be
created with
respect to any unit in the condominium,
a statement in
conspicuous type stating that timeshare
estates are created and
being sold in units in the condominium.
(6) A description of the recreational
and other commonly
used facilities that will be used only
by unit owners of the
condominium, including, but not limited
to, the following:
(a) Each room and its intended purposes,
location,
approximate floor area, and capacity in
numbers of people.
(b) Each swimming pool, as to its general
location,
approximate size and depths, approximate
deck size and capacity,
and whether heated.
Page 27 of 42
(c) Additional facilities, as to the number
of each
facility, its approximate location, approximate
size, and
approximate capacity.
(d) A general description of the items
of personal
property and the approximate number of
each item of personal
property that the developer is committing
to furnish for each
room or other facility or, in the alternative,
a representation
as to the minimum amount of expenditure
that will be made to
purchase the personal property for the
facility.
(e) The estimated date when each room
or other facility
will be available for use by the unit
owners.
(f)1. An identification of each room or
other facility to
be used by unit owners that will not be
owned by the unit owners
or the association;
2. A reference to the location in the
disclosure materials
of the lease or other agreements providing
for the use of those
facilities; and
3. A description of the terms of the lease
or other
agreements, including the length of the
term; the rent payable,
directly or indirectly, by each unit owner,
and the total rent
payable to the lessor, stated in monthly
and annual amounts for
the entire term of the lease; and a description
of any option to
purchase the property leased under any
such lease, including the
time the option may be exercised, the
purchase price or how it
is to be determined, the manner of payment,
and whether the
option may be exercised for a unit owner's
share or only as to
the entire leased property.
Page 28 of 42
(g) A statement as to whether the developer
may provide
additional facilities not described above;
their general
locations and types; improvements or changes
that may be made;
the approximate dollar amount to be expended;
and the maximum
additional common expense or cost to the
individual unit owners
that may be charged during the first annual
period of operation
of the modified or added facilities.
Descriptions as to locations, areas, capacities,
numbers,
volumes, or sizes may be stated as approximations
or minimums.
(7) A description of the recreational
and other facilities
that will be used in common with other
condominiums, community
associations, or planned developments
which require the payment
of the maintenance and expenses of such
facilities, either
directly or indirectly, by the unit owners.
The description
shall include, but not be limited to,
the following:
(a) Each building and facility committed
to be built.
(b) Facilities not committed to be built
except under
certain conditions, and a statement of
those conditions or
contingencies.
(c) As to each facility committed to be
built, or which
will be committed to be built upon the
happening of one of the
conditions in paragraph (b), a statement
of whether it will be
owned by the unit owners having the use
thereof or by an
association or other entity which will
be controlled by them, or
others, and the location in the exhibits
of the lease or other
document providing for use of those facilities.
Page 29 of 42
(d) The year in which each facility will
be available for
use by the unit owners or, in the alternative,
the maximum
number of unit owners in the project at
the time each of all of
the facilities is committed to be completed.
(e) A general description of the items
of personal
property, and the approximate number of
each item of personal
property, that the developer is committing
to furnish for each
room or other facility or, in the alternative,
a representation
as to the minimum amount of expenditure
that will be made to
purchase the personal property for the
facility.
(f) If there are leases, a description
thereof, including
the length of the term, the rent payable,
and a description of
any option to purchase.
Descriptions shall include location, areas,
capacities, numbers,
volumes, or sizes and may be stated as
approximations or
minimums.
(8) Recreation lease or associated club
membership:
(a) If any recreational facilities or
other facilities
offered by the developer and available
to, or to be used by,
unit owners are to be leased or have club
membership associated,
the following statement in conspicuous
type shall be included:
THERE IS A RECREATIONAL FACILITIES LEASE
ASSOCIATED WITH THIS
CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP
ASSOCIATED WITH THIS
CONDOMINIUM. There shall be a reference
to the location in the
disclosure materials where the recreation
lease or club
membership is described in detail.
Page 30 of 42
(b) If it is mandatory that unit owners
pay a fee, rent,
dues, or other charges under a recreational
facilities lease or
club membership for the use of facilities,
there shall be in
conspicuous type the applicable statement:
1. MEMBERSHIP IN THE RECREATIONAL FACILITIES
CLUB IS
MANDATORY FOR UNIT OWNERS; or
2. UNIT OWNERS ARE REQUIRED, AS A CONDITION
OF OWNERSHIP,
TO BE LESSEES UNDER THE RECREATIONAL FACILITIES
LEASE; or
3. UNIT OWNERS ARE REQUIRED TO PAY THEIR
SHARE OF THE
COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT,
UPKEEP,
REPLACEMENT, RENT, AND FEES UNDER THE
RECREATIONAL FACILITIES
LEASE (OR THE OTHER INSTRUMENTS PROVIDING
THE FACILITIES); or
4. A similar statement of the nature of
the organization
or the manner in which the use rights
are created, and that unit
owners are required to pay.
Immediately following the applicable statement,
the location in
the disclosure materials where the development
is described in
detail shall be stated.
(c) If the developer, or any other person
other than the
unit owners and other persons having use
rights in the
facilities, reserves, or is entitled to
receive, any rent, fee,
or other payment for the use of the facilities,
then there shall
be the following statement in conspicuous
type: THE UNIT OWNERS
OR THE ASSOCIATION(S) MUST PAY RENT OR
LAND USE FEES FOR
RECREATIONAL OR OTHER COMMONLY USED FACILITIES.
Immediately
following this statement, the location
in the disclosure
Page 31 of 42
materials where the rent or land use fees
are described in
detail shall be stated.
(d) If, in any recreation format, whether
leasehold, club,
or other, any person other than the association
has the right to
a lien on the units to secure the payment
of assessments, rent,
or other exactions, there shall appear
a statement in
conspicuous type in substantially the
following form:
1. THERE IS A LIEN OR LIEN RIGHT AGAINST
EACH UNIT TO
SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS
UNDER THE
RECREATION LEASE. THE UNIT OWNER'S FAILURE
TO MAKE THESE
PAYMENTS MAY RESULT IN FORECLOSURE OF
THE LIEN; or
2. THERE IS A LIEN OR LIEN RIGHT AGAINST
EACH UNIT TO
SECURE THE PAYMENT OF ASSESSMENTS OR OTHER
EXACTIONS COMING DUE
FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR
OF THE RECREATIONAL
OR COMMONLY USED FACILITIES. THE UNIT
OWNER'S FAILURE TO MAKE
THESE PAYMENTS MAY RESULT IN FORECLOSURE
OF THE LIEN.
Immediately following the applicable statement,
the location in
the disclosure materials where the lien
or lien right is
described in detail shall be stated.
(9) If the developer or any other person
has the right to
increase or add to the recreational facilities
at any time after
the establishment of the condominium whose
unit owners have use
rights therein, without the consent of
the unit owners or
associations being required, there shall
appear a statement in
conspicuous type in substantially the
following form:
RECREATIONAL FACILITIES MAY BE EXPANDED
OR ADDED WITHOUT CONSENT
OF UNIT OWNERS OR THE ASSOCIATION(S).
Immediately following this
Page 32 of 42
statement, the location in the disclosure
materials where such
reserved rights are described shall be
stated.
(10) A statement of whether the developer's
plan includes
a program of leasing units rather than
selling them, or leasing
units and selling them subject to such
leases. If so, there
shall be a description of the plan, including
the number and
identification of the units and the provisions
and term of the
proposed leases, and a statement in boldfaced
type that: THE
UNITS MAY BE TRANSFERRED SUBJECT TO A
LEASE.
(11) The arrangements for management of
the association
and maintenance and operation of the condominium
property and of
other property that will serve the unit
owners of the
condominium property, and a description
of the management
contract and all other contracts for these
purposes having a
term in excess of 1 year, including the
following:
(a) The names of contracting parties.
(b) The term of the contract.
(c) The nature of the services included.
(d) The compensation, stated on a monthly
and annual
basis, and provisions for increases in
the compensation.
(e) A reference to the volumes and pages
of the
condominium documents and of the exhibits
containing copies of
such contracts.
Copies of all described contracts shall
be attached as exhibits.
If there is a contract for the management
of the condominium
property, then a statement in conspicuous
type in substantially
the following form shall appear, identifying
the proposed or
Page 33 of 42
existing contract manager: THERE IS (IS
TO BE) A CONTRACT FOR
THE MANAGEMENT OF THE CONDOMINIUM PROPERTY
WITH (NAME OF THE
CONTRACT MANAGER). Immediately following
this statement, the
location in the disclosure materials of
the contract for
management of the condominium property
shall be stated.
(12) If the developer or any other person
or persons other
than the unit owners has the right to
retain control of the
board of administration of the association
for a period of time
which can exceed 1 year after the closing
of the sale of a
majority of the units in that condominium
to persons other than
successors or alternate developers, then
a statement in
conspicuous type in substantially the
following form shall be
included: THE DEVELOPER (OR OTHER PERSON)
HAS THE RIGHT TO
RETAIN CONTROL OF THE ASSOCIATION AFTER
A MAJORITY OF THE UNITS
HAVE BEEN SOLD. Immediately following
this statement, the
location in the disclosure materials where
this right to control
is described in detail shall be stated.
(13) If there are any restrictions upon
the sale,
transfer, conveyance, or leasing of a
unit, then a statement in
conspicuous type in substantially the
following form shall be
included: THE SALE, LEASE, OR TRANSFER
OF UNITS IS RESTRICTED OR
CONTROLLED. Immediately following this
statement, the location
in the disclosure materials where the
restriction, limitation,
or control on the sale, lease, or transfer
of units is described
in detail shall be stated.
(14) If the condominium is part of a phase
project, the
following information shall be stated:
Page 34 of 42
(a) A statement in conspicuous type in
substantially the
following form: THIS IS A PHASE CONDOMINIUM.
ADDITIONAL LAND AND
UNITS MAY BE ADDED TO THIS CONDOMINIUM.
Immediately following
this statement, the location in the disclosure
materials where
the phasing is described shall be stated.
(b) A summary of the provisions of the
declaration which
provide for the phasing.
(c) A statement as to whether or not residential
buildings
and units which are added to the condominium
may be
substantially different from the residential
buildings and units
originally in the condominium. If the
added residential
buildings and units may be substantially
different, there shall
be a general description of the extent
to which such added
residential buildings and units may differ,
and a statement in
conspicuous type in substantially the
following form shall be
included: BUILDINGS AND UNITS WHICH ARE
ADDED TO THE CONDOMINIUM
MAY BE SUBSTANTIALLY DIFFERENT FROM THE
OTHER BUILDINGS AND
UNITS IN THE CONDOMINIUM. Immediately
following this statement,
the location in the disclosure materials
where the extent to
which added residential buildings and
units may substantially
differ is described shall be stated.
(d) A statement of the maximum number
of buildings
containing units, the maximum and minimum
numbers of units in
each building, the maximum number of units,
and the minimum and
maximum square footage of the units that
may be contained within
each parcel of land which may be added
to the condominium.
Page 35 of 42
(15) If a condominium created on or after
July 1, 2000, is
or may become part of a multicondominium,
the following
information must be provided:
(a) A statement in conspicuous type in
substantially the
following form: THIS CONDOMINIUM IS (MAY
BE) PART OF A
MULTICONDOMINIUM DEVELOPMENT IN WHICH
OTHER CONDOMINIUMS WILL
(MAY) BE OPERATED BY THE SAME ASSOCIATION.
Immediately following
this statement, the location in the prospectus
or offering
circular and its exhibits where the multicondominium
aspects of
the offering are described must be stated.
(b) A summary of the provisions in the
declaration,
articles of incorporation, and bylaws
which establish and
provide for the operation of the multicondominium,
including a
statement as to whether unit owners in
the condominium will have
the right to use recreational or other
facilities located or
planned to be located in other condominiums
operated by the same
association, and the manner of sharing
the common expenses
related to such facilities.
(c) A statement of the minimum and maximum
number of
condominiums, and the minimum and maximum
number of units in
each of those condominiums, which will
or may be operated by the
association, and the latest date by which
the exact number will
be finally determined.
(d) A statement as to whether any of the
condominiums in
the multicondominium may include units
intended to be used for
nonresidential purposes and the purpose
or purposes permitted
for such use.
Page 36 of 42
(e) A general description of the location
and approximate
acreage of any land on which any additional
condominiums to be
operated by the association may be located.
(16) If the condominium is created by
conversion of
existing improvements, the following information
shall be
stated:
(a) The information required by s. 718.616.
(b) A caveat that there are no express
warranties unless
they are stated in writing by the developer.
(17) A summary of the restrictions, if
any, to be imposed
on units concerning the use of any of
the condominium property,
including statements as to whether there
are restrictions upon
children and pets, and reference to the
volumes and pages of the
condominium documents where such restrictions
are found, or if
such restrictions are contained elsewhere,
then a copy of the
documents containing the restrictions
shall be attached as an
exhibit.
(18) If there is any land that is offered
by the developer
for use by the unit owners and that is
neither owned by them nor
leased to them, the association, or any
entity controlled by
unit owners and other persons having the
use rights to such
land, a statement shall be made as to
how such land will serve
the condominium. If any part of such land
will serve the
condominium, the statement shall describe
the land and the
nature and term of service, and the declaration
or other
instrument creating such servitude shall
be included as an
exhibit.
Page 37 of 42
(19) The manner in which utility and other
services,
including, but not limited to, sewage
and waste disposal, water
supply, and storm drainage, will be provided
and the person or
entity furnishing them.
(20) An explanation of the manner in which
the
apportionment of common expenses and ownership
of the common
elements has been determined.
(21) An estimated operating budget for
the condominium and
the association, and a schedule of the
unit owner's expenses
shall be attached as an exhibit and shall
contain the following
information:
(a) The estimated monthly and annual expenses
of the
condominium and the association that are
collected from unit
owners by assessments.
(b) The estimated monthly and annual expenses
of each unit
owner for a unit, other than common expenses
paid by all unit
owners, payable by the unit owner to persons
or entities other
than the association, as well as to the
association, including
fees assessed pursuant to s. 718.113(1)
for maintenance of
limited common elements where such costs
are shared only by
those entitled to use the limited common
element, and the total
estimated monthly and annual expense.
There may be excluded from
this estimate expenses which are not provided
for or
contemplated by the condominium documents,
including, but not
limited to, the costs of private telephone;
maintenance of the
interior of condominium units, which is
not the obligation of
the association; maid or janitorial services
privately
contracted for by the unit owners; utility
bills billed directly
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to each unit owner for utility services
to his or her unit;
insurance premiums other than those incurred
for policies
obtained by the condominium; and similar
personal expenses of
the unit owner. A unit owner's estimated
payments for
assessments shall also be stated in the
estimated amounts for
the times when they will be due.
(c) The estimated items of expenses of
the condominium and
the association, except as excluded under
paragraph (b),
including, but not limited to, the following
items, which shall
be stated either as an association expense
collectible by
assessments or as unit owners' expenses
payable to persons other
than the association:
1. Expenses for the association and condominium:
a. Administration of the association.
b. Management fees.
c. Maintenance.
d. Rent for recreational and other commonly
used
facilities.
e. Taxes upon association property.
f. Taxes upon leased areas.
g. Insurance.
h. Security provisions.
i. Other expenses.
j. Operating capital.
k. Reserves.
l. Fees payable to the division.
2. Expenses for a unit owner:
a. Rent for the unit, if subject to a
lease.
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b. Rent payable by the unit owner directly
to the lessor
or agent under any recreational lease
or lease for the use of
commonly used facilities, which use and
payment is a mandatory
condition of ownership and is not included
in the common expense
or assessments for common maintenance
paid by the unit owners to
the association.
(d) The estimated amounts shall be stated
for a period of
at least 12 months and may distinguish
between the period prior
to the time unit owners other than the
developer elect a
majority of the board of administration
and the period after
that date.
(22) A schedule of estimated closing expenses
to be paid
by a buyer or lessee of a unit and a statement
of whether title
opinion or title insurance policy is available
to the buyer and,
if so, at whose expense.
(23) The identity of the developer and
the chief operating
officer or principal directing the creation
and sale of the
condominium and a statement of its and
his or her experience in
this field.
(24) Copies of the following, to the extent
they are
applicable, shall be included as exhibits:
(a) The declaration of condominium, or
the proposed
declaration if the declaration has not
been recorded.
(b) The articles of incorporation creating
the
association.
(c) The bylaws of the association.
(d) The ground lease or other underlying
lease of the
condominium.
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(e) The management agreement and all maintenance
and other
contracts for management of the association
and operation of the
condominium and facilities used by the
unit owners having a
service term in excess of 1 year.
(f) The estimated operating budget for
the condominium and
the required schedule of unit owners'
expenses.
(g) A copy of the floor plan of the unit
and the plot plan
showing the location of the residential
buildings and the
recreation and other common areas.
(h) The lease of recreational and other
facilities that
will be used only by unit owners of the
subject condominium.
(i) The lease of facilities used by owners
and others.
(j) The form of unit lease, if the offer
is of a
leasehold.
(k) A declaration of servitude of properties
serving the
condominium but not owned by unit owners
or leased to them or
the association.
(l) The statement of condition of the
existing building or
buildings, if the offering is of units
in an operation being
converted to condominium ownership.
(m) The statement of inspection for termite
damage and
treatment of the existing improvements,
if the condominium is a
conversion.
(n) The form of agreement for sale or
lease of units.
(o) A copy of the agreement for escrow
of payments made to
the developer prior to closing.
(p) A copy of the documents containing
any restrictions on
use of the property required by subsection
(17).
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(25) Any prospectus or offering circular
complying, prior
to the effective date of this act, with
the provisions of former
ss. 711.69 and 711.802 may continue to
be used without amendment
or may be amended to comply with the provisions
of this chapter.
(26) A brief narrative description of
the location and
effect of all existing and intended easements
located or to be
located on the condominium property other
than those described
in the declaration.
(27) If the developer is required by state
or local
authorities to obtain acceptance or approval
of any dock or
marina facilities intended to serve the
condominium, a copy of
any such acceptance or approval acquired
by the time of filing
with the division under s. 718.502(1)
or a statement that such
acceptance or approval has not been acquired
or received.
(28) Evidence demonstrating that the developer
has an
ownership, leasehold, or contractual interest
in the land upon
which the condominium is to be developed.
(29) Whether
the association is currently a party of
record in litigation
in which the association may face liability
of $25,000 or
more and, if so, the nature and title of that
litigation.
Section 16. All
of the records, personnel, property, and
unexpended balances
of appropriations, allocations, or other
funds for the
administration of part VIII of chapter 468,
Florida Statutes,
shall be transferred by a type two transfer as
defined in s.
20.06(2), Florida Statutes, from the Division of
Professions of
the Department of Business and Professional
Regulation to
the Division of Florida Land Sales, Condominiums,
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and Mobile Homes
of the Department of Business and Professional
Regulation.
Section 17. The
Department of Business and Professional
Regulation may
continue to prosecute any existing legal
proceedings and
related administrative cases that are in
existence on
the effective date of this act.
Section 18. Section 718.510, Florida Statutes,
is created
to read:
718.510 Condominium
Owners' Bill of Rights.--The division
shall adopt rules
to provide for a brochure entitled
"Condominium
Owners' Bill of Rights," which shall explain what
rights are afforded
to condominium owners and potential
purchasers of
condominiums under this chapter. It is the intent
of the Legislature
that this brochure be widely distributed and
as conveniently
available as possible.
Section 19. This act shall take effect
upon becoming a
law.
CODING: Words stricken
are deletions; words underlined are
additions.
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