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

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 State Administration recommends the following: 

1 The Committee on State Administration recommends the following: 
2 
3      Committee Substitute 
4      Remove the entire bill and insert: 
5 A bill to be entitled 
6 An act relating to condominium associations; amending s.  
7 718.110, F.S.; providing for grandfathering and  
8 modification of rental rights; providing for certain  
9 application of the amendment of unit owners' rental  
10 rights; providing certain voting and approval criteria for  
11 amendments depriving owners of certain rights; creating s.  
12 718.5011, F.S.; creating an Office of the Condominium  
13 Ombudsman within the Division of Florida Land Sales,  
14 Condominiums, and Mobile Homes; providing for the office's  
15 independence from the division; authorizing the Joint  
16 Legislative Auditing Committee to appoint the ombudsman;  
17 requiring the ombudsman to be an attorney; providing for  
18 the filling of a vacant ombudsman position; requiring the  
19 ombudsman and staff to subscribe to the oath of office  
20 required of state officers; prohibiting the ombudsman and  
21 staff from engaging in any other profession, serving as a  
22 representative or employee of any political party, or  
23 receiving remuneration for activities on behalf of  
24 political candidates; prohibiting the ombudsman and staff  
25 from seeking public office unless resigned from the Office  
26 of the Condominium Ombudsman; providing requirements and  
27 limitations for office staff; creating s. 718.5012, F.S.;  
28 providing for powers and duties of the ombudsman; creating  
29 s. 718.5013, F.S.; providing for compensation and expenses  
30 for the office; authorizing the ombudsman to employ  
31 clerical and technical assistants for certain purposes;  
32 creating s. 718.5014, F.S.; providing for the location of  
33 the ombudsman's office; creating s. 718.5015, F.S.;  
34 creating the Advisory Council on Condominiums; providing  
35 for membership, functions, meetings, and offices of the  
36 council; amending s. 718.504, F.S.; revising provisions  
37 relating to certain prospectus and offering circulars;  
38 requiring developers of certain condominiums to provide a  
39 prospectus including a "Frequently Asked Questions and  
40 Answers" document; requiring the document to contain  
41 certain information; reducing the threshold amount to be  
42 required to be disclosed in controversy for litigation;  
43 preserving the department's authority to pursue certain  
44 remedies; providing an effective date. 
45 
46 Be It Enacted by the Legislature of the State of Florida: 
47 
48      Section 1.  Subsection (13) is added to section 718.110,  
49 Florida Statutes, to read: 
50      718.110  Amendment of declaration; correction of error or  
51 omission in declaration by circuit court; grandfathering and  
52 modification of certain rights.-- 
53      (13)(a)  Unless expressly stated in the amendment, any  
54 amendment restricting unit owners' rights relating to the rental  
55 of units, keeping of pets, or allocation of parking spaces shall  
56 apply only to unit owners who purchase their unit after the  
57 effective date of that amendment. 
58      (b)  Notwithstanding any other provision of law, or of the  
59 declaration or bylaws, if an amendment expressly deprives  
60 current unit owners of any part of their rights mentioned in  
61 subsection (a), it must be approved by at least a majority of  
62 the voting interests. A declaration or an amendment to a  
63 declaration may provide for a higher super majority vote  
64 requirement. 
65      Section 2.  Section 718.5011, Florida Statutes, is created  
66 to read: 
67      718.5011  Ombudsman; appointment; oath; restrictions on  
68 ombudsman and his or her employees.-- 
69      (1)  There is created an Office of the Condominium  
70 Ombudsman that for administrative purposes shall be located  
71 within the Division of Florida Land Sales, Condominiums, and  
72 Mobile Homes. However, the office shall be independent of the  
73 division. 
74      (2)  The Joint Legislative Auditing Committee shall appoint  
75 an ombudsman by majority vote of the members of that committee.  
76 The ombudsman shall be an attorney admitted to practice before  
77 the Florida Supreme Court and shall serve at the pleasure of the  
78 Joint Legislative Auditing Committee. Vacancies in the office  
79 shall be filled in the same manner as the original appointment.  
80 The ombudsman and attorneys under his or her staff shall take  
81 and subscribe to the oath of office required of state officers  
82 by the State Constitution. No officer or full-time employee of  
83 the ombudsman's office shall actively engage in any other  
84 business or profession; serve as the representative of any  
85 political party, executive committee, or other governing body  
86 thereof; serve as an executive, officer, or employee of any  
87 political party, committee, organization, or association;  
88 receive remuneration for activities on behalf of any candidate  
89 for public office; or engage on behalf of any candidate for  
90 public office in the solicitation of votes or other activities  
91 on behalf of such candidacy. Neither the ombudsman nor any  
92 employee of his or her office shall become a candidate for  
93 election to public office unless he or she first resigns from  
94 his or her office or employment. 
95      Section 3.  Section 718.5012, Florida Statutes, is created  
96 to read: 
97      718.5012  Ombudsman; powers and duties.--The ombudsman  
98 shall have such powers as are necessary to carry out the duties  
99 of his or her office, including, but not limited to, the  
100 following specific powers: 
101      (1)  To have access to and use of all files and records of  
102 the division and of all condominium associations, by subpoena if  
103 necessary. 
104      (2)  To conduct onsite inspections of condominiums,  
105 including surprise inspections in accordance with rules  
106 providing for such inspections. 
107      (3)  To prepare and issue reports, recommendations, and  
108 proposed orders to the division, the Governor, the Advisory  
109 Council on Condominiums, the President of the Senate, the  
110 Speaker of the House of Representatives, and minority leaders of  
111 the Senate and the House of Representatives on any matter or  
112 subject within the jurisdiction of the division, and to make  
113 such recommendations as he or she deems appropriate for  
114 legislation relative to division procedures, rules,  
115 jurisdiction, personnel, and functions. 
116      (4)  To act as liaison between the division and unit  
117 owners, and to assist any unit owner in the preparation and  
118 filing of a complaint to be investigated by the division. The  
119 ombudsman shall establish procedures for receiving complaints.  
120 Any complaint deemed valid by the ombudsman and properly falling  
121 within the jurisdiction of the division and requiring remedial  
122 action shall be identified and promptly filed with the division.  
123 Upon the concurrence of the division, the ombudsman shall  
124 establish target dates for concluding an investigation and for  
125 taking appropriate specified remedial action. The ombudsman may  
126 recommend that the division initiate enforcement proceedings in  
127 accordance with chapter 120. The department and the ombudsman  
128 may take findings of a criminal nature and submit them as  
129 evidence to the state attorney's office and work with such  
130 office to bring charges against the alleged parties involved. 
131      (5)  To monitor, investigate, and review condominium  
132 elections and meetings. In addition, the ombudsman shall: 
133      (a)  Prove to the division, by clear and convincing  
134 evidence, that a member of a condominium board has attempted,  
135 engaged in, conspired to engage in, or willfully and knowingly  
136 benefited from electoral fraud in order for the division to  
137 order such member removed from office. Such an order of removal  
138 shall also prohibit such member from running for election to any  
139 office of the condominium board in the state for 4 years. If any  
140 person is so removed from office twice, such person shall be  
141 barred for life from serving on a condominium board. Factual  
142 findings forming the basis for an order of removal shall be  
143 subject to judicial review only for abuse of discretion. 
144      (b)  Jointly, with the division, adopt rules governing  
145 removal proceedings. Such rules shall, at a minimum, provide the  
146 accused board member with adequate notice, opportunity to be  
147 heard, the right to confront and cross-examine witnesses, the  
148 right to submit rebuttal evidence, and the right to counsel. 
149 

150 Neither this subsection nor rules adopted to implement it shall  
151 be construed to require provision of counsel or witnesses, or  
152 other assistance, at public expense. 
153      (6)  To resolve disputes among unit owners by ordering  
154 mediation or arbitration in the same manner as the division. 
155      (7)  To make recommendations to the division for changes in  
156 rules and procedures for the filing, investigation, and  
157 resolution of complaints filed by unit owners, associations, and  
158 managers. 
159      Section 4.  Section 718.5013, Florida Statutes, is created  
160 to read: 
161      718.5013  Ombudsman; compensation and expenses.-- 
162      (1)  All costs and expenses incurred by the Office of the  
163 Condominium Ombudsman shall be paid from disbursements from the  
164 Division of Florida Land Sales, Condominiums, and Mobile Homes  
165 Trust Fund and shall require approval of the Joint Legislative  
166 Auditing Committee. 
167      (2)  The Joint Legislative Auditing Committee may authorize  
168 the ombudsman to employ clerical and technical assistants whose  
169 qualifications, duties, and responsibilities the committee shall  
170 from time to time prescribe, and to enter into such contracts as  
171 necessary. The committee may authorize retention of the services  
172 of additional attorneys or experts to the extent that the best  
173 interests of the people of the state will be better served  
174 thereby, including the retention of expert witnesses and other  
175 technical personnel for participation in contested proceedings  
176 before the division. 
177      Section 5.  Section 718.5014, Florida Statutes, is created  
178 to read: 
179      718.5014  Ombudsman; location.--The ombudsman shall  
180 maintain his or her principal office in Leon County on the  
181 premises of the division or, if suitable space cannot be  
182 provided there, at such other place convenient to the offices of  
183 the division as will enable the ombudsman to expeditiously carry  
184 out the duties and functions of his or her office. The ombudsman  
185 may establish branch offices upon the concurrence of the Joint  
186 Legislative Auditing Committee 
187      Section 6.  Section 718.5015, Florida Statutes, is created  
188 to read: 
189      718.5015  Advisory council; membership functions.-- 
190      (1)  There is created the Advisory Council on Condominiums.  
191 The council shall consist of seven members. Two members shall be  
192 appointed by the Speaker of the House of Representatives, two  
193 members shall be appointed by the President of the Senate, and  
194 three members shall be appointed by the Governor. At least one  
195 member shall represent timeshare condominiums. Members shall be  
196 appointed to 2-year terms; however, of the initial appointments,  
197 one of the members appointed by each of the Governor, the  
198 Speaker of the House of Representatives, and the President of  
199 the Senate shall be appointed to 1-year terms. In addition to  
200 these appointed members, the director of the Division of Florida  
201 Land Sales, Condominiums, and Mobile Homes shall serve as an ex  
202 officio member of the council. It is the intent of the  
203 Legislature that the persons appointed to this council represent  
204 a cross-section of persons interested in condominium issues. For  
205 administrative purposes, the council shall be located in the  
206 Division of Florida Land Sales, Condominiums, and Mobile Homes  
207 of the Department of Business and Professional Regulation.  
208 Members of the council shall serve without compensation, but  
209 shall be entitled to receive per diem and travel expenses  
210 pursuant to s. 112.061 while on official business. 
211      (2)  The functions of the advisory council shall be to: 
212      (a)  Receive input from the public regarding issues of  
213 concern with respect to condominiums and to receive  
214 recommendations for any changes to be made in the condominium  
215 law. The issues that the council shall consider shall include,  
216 but shall not be limited to, the rights and responsibilities of  
217 the unit owners in relation to the rights and responsibilities  
218 of the association. 
219      (b)  Review, evaluate, and advise the division concerning  
220 revisions and adoption of rules affecting condominiums. 
221      (c)  Recommend improvements, if needed, in the education  
222 programs offered by the division. 
223      (3)  The council is authorized to elect a chair and vice  
224 chair and such other offices as it may deem advisable. The  
225 council shall meet at the call of its chair, at the request of a  
226 majority of its membership, at the request of the division, or  
227 at such times as may be prescribed by its rules. A majority of  
228 the members of the council shall constitute a quorum for the  
229 transaction of all business and the carrying out of the duties  
230 of the council. 
231      Section 7.  Section 718.504, Florida Statutes, is amended  
232 to read: 
233      718.504  Prospectus or offering circular; "Frequently Asked  
234 Questions and Answers".--Every developer of a residential  
235 condominium which contains more than 20 residential units, or  
236 which is part of a group of residential condominiums which will  
237 be served by property to be used in common by unit owners of  
238 more than 20 residential units, shall prepare a prospectus or  
239 offering circular and file it with the Division of Florida Land  
240 Sales, Condominiums, and Mobile Homes prior to entering into an  
241 enforceable contract of purchase and sale of any unit or lease  
242 of a unit for more than 5 years and shall furnish a copy of the  
243 prospectus or offering circular to each buyer. In addition to  
244 the prospectus or offering circular, any prospective each buyer  
245 from the developer or a current unit owner shall be furnished a  
246 separate document page entitled "Frequently Asked Questions and  
247 Answers," which shall be in accordance with a format approved by  
248 the division and a copy of the financial information required by  
249 s. 718.111. This document page shall, in readable language,  
250 inform prospective purchasers regarding their voting rights and  
251 unit use restrictions, including restrictions on the leasing of  
252 a unit; shall indicate whether and in what amount the unit  
253 owners or the association is obligated to pay rent or land use  
254 fees for recreational or other commonly used facilities; shall  
255 contain a statement identifying that amount of assessment which,  
256 pursuant to the budget, would be levied upon each unit type,  
257 exclusive of any special assessments, and which shall further  
258 identify the basis upon which assessments are levied, whether  
259 monthly, quarterly, or otherwise; shall state and identify any  
260 court cases in which the association is currently a party of  
261 record in which the association may face liability in excess of  
262 $25,000 or more $100,000; and which shall further state whether  
263 membership in a recreational facilities association is  
264 mandatory, and if so, shall identify the fees currently charged  
265 per unit type. The division shall by rule require such other  
266 disclosure as in its judgment will assist prospective  
267 purchasers. The prospectus or offering circular may include more  
268 than one condominium, although not all such units are being  
269 offered for sale as of the date of the prospectus or offering  
270 circular. The prospectus or offering circular must contain the  
271 following information: 
272      (1)  The front cover or the first page must contain only: 
273      (a)  The name of the condominium. 
274      (b)  The following statements in conspicuous type: 
275      1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT  
276 MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT. 
277      2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN  
278 NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,  
279 ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES  
280 MATERIALS. 
281      3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY  
282 STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS  
283 PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT  
284 REPRESENTATIONS. 
285      (2)  Summary: The next page must contain all statements  
286 required to be in conspicuous type in the prospectus or offering  
287 circular. 
288      (3)  A separate index of the contents and exhibits of the  
289 prospectus. 
290      (4)  Beginning on the first page of the text (not including  
291 the summary and index), a description of the condominium,  
292 including, but not limited to, the following information: 
293      (a)  Its name and location. 
294      (b)  A description of the condominium property, including,  
295 without limitation: 
296      1.  The number of buildings, the number of units in each  
297 building, the number of bathrooms and bedrooms in each unit, and  
298 the total number of units, if the condominium is not a phase  
299 condominium, or the maximum number of buildings that may be  
300 contained within the condominium, the minimum and maximum  
301 numbers of units in each building, the minimum and maximum  
302 numbers of bathrooms and bedrooms that may be contained in each  
303 unit, and the maximum number of units that may be contained  
304 within the condominium, if the condominium is a phase  
305 condominium. 
306      2.  The page in the condominium documents where a copy of  
307 the plot plan and survey of the condominium is located. 
308      3.  The estimated latest date of completion of  
309 constructing, finishing, and equipping. In lieu of a date, the  
310 description shall include a statement that the estimated date of  
311 completion of the condominium is in the purchase agreement and a  
312 reference to the article or paragraph containing that  
313 information. 
314      (c)  The maximum number of units that will use facilities  
315 in common with the condominium. If the maximum number of units  
316 will vary, a description of the basis for variation and the  
317 minimum amount of dollars per unit to be spent for additional  
318 recreational facilities or enlargement of such facilities. If  
319 the addition or enlargement of facilities will result in a  
320 material increase of a unit owner's maintenance expense or  
321 rental expense, if any, the maximum increase and limitations  
322 thereon shall be stated. 
323      (5)(a)  A statement in conspicuous type describing whether  
324 the condominium is created and being sold as fee simple  
325 interests or as leasehold interests. If the condominium is  
326 created or being sold on a leasehold, the location of the lease  
327 in the disclosure materials shall be stated. 
328      (b)  If timeshare estates are or may be created with  
329 respect to any unit in the condominium, a statement in  
330 conspicuous type stating that timeshare estates are created and  
331 being sold in units in the condominium. 
332      (6)  A description of the recreational and other commonly  
333 used facilities that will be used only by unit owners of the  
334 condominium, including, but not limited to, the following: 
335      (a)  Each room and its intended purposes, location,  
336 approximate floor area, and capacity in numbers of people. 
337      (b)  Each swimming pool, as to its general location,  
338 approximate size and depths, approximate deck size and capacity,  
339 and whether heated. 
340      (c)  Additional facilities, as to the number of each  
341 facility, its approximate location, approximate size, and  
342 approximate capacity. 
343      (d)  A general description of the items of personal  
344 property and the approximate number of each item of personal  
345 property that the developer is committing to furnish for each  
346 room or other facility or, in the alternative, a representation  
347 as to the minimum amount of expenditure that will be made to  
348 purchase the personal property for the facility. 
349      (e)  The estimated date when each room or other facility  
350 will be available for use by the unit owners. 
351      (f)1.  An identification of each room or other facility to  
352 be used by unit owners that will not be owned by the unit owners  
353 or the association; 
354      2.  A reference to the location in the disclosure materials  
355 of the lease or other agreements providing for the use of those  
356 facilities; and 
357      3.  A description of the terms of the lease or other  
358 agreements, including the length of the term; the rent payable,  
359 directly or indirectly, by each unit owner, and the total rent  
360 payable to the lessor, stated in monthly and annual amounts for  
361 the entire term of the lease; and a description of any option to  
362 purchase the property leased under any such lease, including the  
363 time the option may be exercised, the purchase price or how it  
364 is to be determined, the manner of payment, and whether the  
365 option may be exercised for a unit owner's share or only as to  
366 the entire leased property. 
367      (g)  A statement as to whether the developer may provide  
368 additional facilities not described above; their general  
369 locations and types; improvements or changes that may be made;  
370 the approximate dollar amount to be expended; and the maximum  
371 additional common expense or cost to the individual unit owners  
372 that may be charged during the first annual period of operation  
373 of the modified or added facilities. 
374 
 
375 Descriptions as to locations, areas, capacities, numbers,  
376 volumes, or sizes may be stated as approximations or minimums. 
377      (7)  A description of the recreational and other facilities  
378 that will be used in common with other condominiums, community  
379 associations, or planned developments which require the payment  
380 of the maintenance and expenses of such facilities, either  
381 directly or indirectly, by the unit owners. The description  
382 shall include, but not be limited to, the following: 
383      (a)  Each building and facility committed to be built. 
384      (b)  Facilities not committed to be built except under  
385 certain conditions, and a statement of those conditions or  
386 contingencies. 
387      (c)  As to each facility committed to be built, or which  
388 will be committed to be built upon the happening of one of the  
389 conditions in paragraph (b), a statement of whether it will be  
390 owned by the unit owners having the use thereof or by an  
391 association or other entity which will be controlled by them, or  
392 others, and the location in the exhibits of the lease or other  
393 document providing for use of those facilities. 
394      (d)  The year in which each facility will be available for  
395 use by the unit owners or, in the alternative, the maximum  
396 number of unit owners in the project at the time each of all of  
397 the facilities is committed to be completed. 
398      (e)  A general description of the items of personal  
399 property, and the approximate number of each item of personal  
400 property, that the developer is committing to furnish for each  
401 room or other facility or, in the alternative, a representation  
402 as to the minimum amount of expenditure that will be made to  
403 purchase the personal property for the facility. 
404      (f)  If there are leases, a description thereof, including  
405 the length of the term, the rent payable, and a description of  
406 any option to purchase. 
407 
 
408 Descriptions shall include location, areas, capacities, numbers,  
409 volumes, or sizes and may be stated as approximations or  
410 minimums. 
411      (8)  Recreation lease or associated club membership: 
412      (a)  If any recreational facilities or other facilities  
413 offered by the developer and available to, or to be used by,  
414 unit owners are to be leased or have club membership associated,  
415 the following statement in conspicuous type shall be included:  
416 THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS  
417 CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS  
418 CONDOMINIUM. There shall be a reference to the location in the  
419 disclosure materials where the recreation lease or club  
420 membership is described in detail. 
421      (b)  If it is mandatory that unit owners pay a fee, rent,  
422 dues, or other charges under a recreational facilities lease or  
423 club membership for the use of facilities, there shall be in  
424 conspicuous type the applicable statement: 
425      1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS  
426 MANDATORY FOR UNIT OWNERS; or 
427      2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,  
428 TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or 
429      3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE  
430 COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,  
431 REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES  
432 LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or 
433      4.  A similar statement of the nature of the organization  
434 or the manner in which the use rights are created, and that unit  
435 owners are required to pay. 
436 
 
437 Immediately following the applicable statement, the location in  
438 the disclosure materials where the development is described in  
439 detail shall be stated. 
440      (c)  If the developer, or any other person other than the  
441 unit owners and other persons having use rights in the  
442 facilities, reserves, or is entitled to receive, any rent, fee,  
443 or other payment for the use of the facilities, then there shall  
444 be the following statement in conspicuous type: THE UNIT OWNERS  
445 OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR  
446 RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately  
447 following this statement, the location in the disclosure  
448 materials where the rent or land use fees are described in  
449 detail shall be stated. 
450      (d)  If, in any recreation format, whether leasehold, club,  
451 or other, any person other than the association has the right to  
452 a lien on the units to secure the payment of assessments, rent,  
453 or other exactions, there shall appear a statement in  
454 conspicuous type in substantially the following form: 
455      1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO  
456 SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE  
457 RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE  
458 PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or 
459      2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO  
460 SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE  
461 FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL  
462 OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE  
463 THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN. 
464 
 
465 Immediately following the applicable statement, the location in  
466 the disclosure materials where the lien or lien right is  
467 described in detail shall be stated. 
468      (9)  If the developer or any other person has the right to  
469 increase or add to the recreational facilities at any time after  
470 the establishment of the condominium whose unit owners have use  
471 rights therein, without the consent of the unit owners or  
472 associations being required, there shall appear a statement in  
473 conspicuous type in substantially the following form:  
474 RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT  
475 OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this  
476 statement, the location in the disclosure materials where such  
477 reserved rights are described shall be stated. 
478      (10)  A statement of whether the developer's plan includes  
479 a program of leasing units rather than selling them, or leasing  
480 units and selling them subject to such leases. If so, there  
481 shall be a description of the plan, including the number and  
482 identification of the units and the provisions and term of the  
483 proposed leases, and a statement in boldfaced type that: THE  
484 UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE. 
485      (11)  The arrangements for management of the association  
486 and maintenance and operation of the condominium property and of  
487 other property that will serve the unit owners of the  
488 condominium property, and a description of the management  
489 contract and all other contracts for these purposes having a  
490 term in excess of 1 year, including the following: 
491      (a)  The names of contracting parties. 
492      (b)  The term of the contract. 
493      (c)  The nature of the services included. 
494      (d)  The compensation, stated on a monthly and annual  
495 basis, and provisions for increases in the compensation. 
496      (e)  A reference to the volumes and pages of the  
497 condominium documents and of the exhibits containing copies of  
498 such contracts. 
499 
 
500 Copies of all described contracts shall be attached as exhibits.  
501 If there is a contract for the management of the condominium  
502 property, then a statement in conspicuous type in substantially  
503 the following form shall appear, identifying the proposed or  
504 existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR  
505 THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE  
506 CONTRACT MANAGER). Immediately following this statement, the  
507 location in the disclosure materials of the contract for  
508 management of the condominium property shall be stated. 
509      (12)  If the developer or any other person or persons other  
510 than the unit owners has the right to retain control of the  
511 board of administration of the association for a period of time  
512 which can exceed 1 year after the closing of the sale of a  
513 majority of the units in that condominium to persons other than  
514 successors or alternate developers, then a statement in  
515 conspicuous type in substantially the following form shall be  
516 included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO  
517 RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS  
518 HAVE BEEN SOLD. Immediately following this statement, the  
519 location in the disclosure materials where this right to control  
520 is described in detail shall be stated. 
521      (13)  If there are any restrictions upon the sale,  
522 transfer, conveyance, or leasing of a unit, then a statement in  
523 conspicuous type in substantially the following form shall be  
524 included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR  
525 CONTROLLED. Immediately following this statement, the location  
526 in the disclosure materials where the restriction, limitation,  
527 or control on the sale, lease, or transfer of units is described  
528 in detail shall be stated. 
529      (14)  If the condominium is part of a phase project, the  
530 following information shall be stated: 
531      (a)  A statement in conspicuous type in substantially the  
532 following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND  
533 UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following  
534 this statement, the location in the disclosure materials where  
535 the phasing is described shall be stated. 
536      (b)  A summary of the provisions of the declaration which  
537 provide for the phasing. 
538      (c)  A statement as to whether or not residential buildings  
539 and units which are added to the condominium may be  
540 substantially different from the residential buildings and units  
541 originally in the condominium. If the added residential  
542 buildings and units may be substantially different, there shall  
543 be a general description of the extent to which such added  
544 residential buildings and units may differ, and a statement in  
545 conspicuous type in substantially the following form shall be  
546 included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM  
547 MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND  
548 UNITS IN THE CONDOMINIUM. Immediately following this statement,  
549 the location in the disclosure materials where the extent to  
550 which added residential buildings and units may substantially  
551 differ is described shall be stated. 
552      (d)  A statement of the maximum number of buildings  
553 containing units, the maximum and minimum numbers of units in  
554 each building, the maximum number of units, and the minimum and  
555 maximum square footage of the units that may be contained within  
556 each parcel of land which may be added to the condominium. 
557      (15)  If a condominium created on or after July 1, 2000, is  
558 or may become part of a multicondominium, the following  
559 information must be provided: 
560      (a)  A statement in conspicuous type in substantially the  
561 following form: THIS CONDOMINIUM IS (MAY BE) PART OF A  
562 MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL  
563 (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following  
564 this statement, the location in the prospectus or offering  
565 circular and its exhibits where the multicondominium aspects of  
566 the offering are described must be stated. 
567      (b)  A summary of the provisions in the declaration,  
568 articles of incorporation, and bylaws which establish and  
569 provide for the operation of the multicondominium, including a  
570 statement as to whether unit owners in the condominium will have  
571 the right to use recreational or other facilities located or  
572 planned to be located in other condominiums operated by the same  
573 association, and the manner of sharing the common expenses  
574 related to such facilities. 
575      (c)  A statement of the minimum and maximum number of  
576 condominiums, and the minimum and maximum number of units in  
577 each of those condominiums, which will or may be operated by the  
578 association, and the latest date by which the exact number will  
579 be finally determined. 
580      (d)  A statement as to whether any of the condominiums in  
581 the multicondominium may include units intended to be used for  
582 nonresidential purposes and the purpose or purposes permitted  
583 for such use. 
584      (e)  A general description of the location and approximate  
585 acreage of any land on which any additional condominiums to be  
586 operated by the association may be located. 
587      (16)  If the condominium is created by conversion of  
588 existing improvements, the following information shall be  
589 stated: 
590      (a)  The information required by s. 718.616. 
591      (b)  A caveat that there are no express warranties unless  
592 they are stated in writing by the developer. 
593      (17)  A summary of the restrictions, if any, to be imposed  
594 on units concerning the use of any of the condominium property,  
595 including statements as to whether there are restrictions upon  
596 children and pets, and reference to the volumes and pages of the  
597 condominium documents where such restrictions are found, or if  
598 such restrictions are contained elsewhere, then a copy of the  
599 documents containing the restrictions shall be attached as an  
600 exhibit. 
601      (18)  If there is any land that is offered by the developer  
602 for use by the unit owners and that is neither owned by them nor  
603 leased to them, the association, or any entity controlled by  
604 unit owners and other persons having the use rights to such  
605 land, a statement shall be made as to how such land will serve  
606 the condominium. If any part of such land will serve the  
607 condominium, the statement shall describe the land and the  
608 nature and term of service, and the declaration or other  
609 instrument creating such servitude shall be included as an  
610 exhibit. 
611      (19)  The manner in which utility and other services,  
612 including, but not limited to, sewage and waste disposal, water  
613 supply, and storm drainage, will be provided and the person or  
614 entity furnishing them. 
615      (20)  An explanation of the manner in which the  
616 apportionment of common expenses and ownership of the common  
617 elements has been determined. 
618      (21)  An estimated operating budget for the condominium and  
619 the association, and a schedule of the unit owner's expenses  
620 shall be attached as an exhibit and shall contain the following  
621 information: 
622      (a)  The estimated monthly and annual expenses of the  
623 condominium and the association that are collected from unit  
624 owners by assessments. 
625      (b)  The estimated monthly and annual expenses of each unit  
626 owner for a unit, other than common expenses paid by all unit  
627 owners, payable by the unit owner to persons or entities other  
628 than the association, as well as to the association, including  
629 fees assessed pursuant to s. 718.113(1) for maintenance of  
630 limited common elements where such costs are shared only by  
631 those entitled to use the limited common element, and the total  
632 estimated monthly and annual expense. There may be excluded from  
633 this estimate expenses which are not provided for or  
634 contemplated by the condominium documents, including, but not  
635 limited to, the costs of private telephone; maintenance of the  
636 interior of condominium units, which is not the obligation of  
637 the association; maid or janitorial services privately  
638 contracted for by the unit owners; utility bills billed directly  
639 to each unit owner for utility services to his or her unit;  
640 insurance premiums other than those incurred for policies  
641 obtained by the condominium; and similar personal expenses of  
642 the unit owner. A unit owner's estimated payments for  
643 assessments shall also be stated in the estimated amounts for  
644 the times when they will be due. 
645      (c)  The estimated items of expenses of the condominium and  
646 the association, except as excluded under paragraph (b),  
647 including, but not limited to, the following items, which shall  
648 be stated either as an association expense collectible by  
649 assessments or as unit owners' expenses payable to persons other  
650 than the association: 
651      1.  Expenses for the association and condominium: 
652      a.  Administration of the association. 
653      b.  Management fees. 
654      c.  Maintenance. 
655      d.  Rent for recreational and other commonly used  
656 facilities. 
657      e.  Taxes upon association property. 
658      f.  Taxes upon leased areas. 
659      g.  Insurance. 
660      h.  Security provisions. 
661      i.  Other expenses. 
662      j.  Operating capital. 
663      k.  Reserves. 
664      l.  Fees payable to the division. 
665      2.  Expenses for a unit owner: 
666      a.  Rent for the unit, if subject to a lease. 
667      b.  Rent payable by the unit owner directly to the lessor  
668 or agent under any recreational lease or lease for the use of  
669 commonly used facilities, which use and payment is a mandatory  
670 condition of ownership and is not included in the common expense  
671 or assessments for common maintenance paid by the unit owners to  
672 the association. 
673      (d)  The estimated amounts shall be stated for a period of  
674 at least 12 months and may distinguish between the period prior  
675 to the time unit owners other than the developer elect a  
676 majority of the board of administration and the period after  
677 that date. 
678      (22)  A schedule of estimated closing expenses to be paid  
679 by a buyer or lessee of a unit and a statement of whether title  
680 opinion or title insurance policy is available to the buyer and,  
681 if so, at whose expense. 
682      (23)  The identity of the developer and the chief operating  
683 officer or principal directing the creation and sale of the  
684 condominium and a statement of its and his or her experience in  
685 this field. 
686      (24)  Copies of the following, to the extent they are  
687 applicable, shall be included as exhibits: 
688      (a)  The declaration of condominium, or the proposed  
689 declaration if the declaration has not been recorded. 
690      (b)  The articles of incorporation creating the  
691 association. 
692      (c)  The bylaws of the association. 
693      (d)  The ground lease or other underlying lease of the  
694 condominium. 
695      (e)  The management agreement and all maintenance and other  
696 contracts for management of the association and operation of the  
697 condominium and facilities used by the unit owners having a  
698 service term in excess of 1 year. 
699      (f)  The estimated operating budget for the condominium and  
700 the required schedule of unit owners' expenses. 
701      (g)  A copy of the floor plan of the unit and the plot plan  
702 showing the location of the residential buildings and the  
703 recreation and other common areas. 
704      (h)  The lease of recreational and other facilities that  
705 will be used only by unit owners of the subject condominium. 
706      (i)  The lease of facilities used by owners and others. 
707      (j)  The form of unit lease, if the offer is of a  
708 leasehold. 
709      (k)  A declaration of servitude of properties serving the  
710 condominium but not owned by unit owners or leased to them or  
711 the association. 
712      (l)  The statement of condition of the existing building or  
713 buildings, if the offering is of units in an operation being  
714 converted to condominium ownership. 
715      (m)  The statement of inspection for termite damage and  
716 treatment of the existing improvements, if the condominium is a  
717 conversion. 
718      (n)  The form of agreement for sale or lease of units. 
719      (o)  A copy of the agreement for escrow of payments made to  
720 the developer prior to closing. 
721      (p)  A copy of the documents containing any restrictions on  
722 use of the property required by subsection (17). 
723      (25)  Any prospectus or offering circular complying, prior  
724 to the effective date of this act, with the provisions of former  
725 ss. 711.69 and 711.802 may continue to be used without amendment  
726 or may be amended to comply with the provisions of this chapter. 
727      (26)  A brief narrative description of the location and  
728 effect of all existing and intended easements located or to be  
729 located on the condominium property other than those described  
730 in the declaration. 
731      (27)  If the developer is required by state or local  
732 authorities to obtain acceptance or approval of any dock or  
733 marina facilities intended to serve the condominium, a copy of  
734 any such acceptance or approval acquired by the time of filing  
735 with the division under s. 718.502(1) or a statement that such  
736 acceptance or approval has not been acquired or received. 
737      (28)  Evidence demonstrating that the developer has an  
738 ownership, leasehold, or contractual interest in the land upon  
739 which the condominium is to be developed. 
740      Section 8.  The Department of Business and Professional  
741 Regulation may continue to prosecute any existing legal  
742 proceedings and related administrative cases that are in  
743 existence on the effective date of this act. 
744      Section 9.  This act shall take effect July 1, 2004. 

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