Florida Real Estate Law
Florida Condominium Law Changes for 2010
Florida Governor Crist signed SB 1196 and 1222 into law creating Ch. 2010-174, Laws of Florida. The new law whose text is spread over 103 pages includes many comprehensive changes to current Florida Condominium law. The purpose of the new law is to address the depleted real estate market and the adverse impact on Florida condominiums, the owners and prospective purchasers. Florida has one of the nation’s highest number of mortgage foreclosures with many of those foreclosures affecting condominium property. As a Florida and Miami lawyer practicing in Florida Real Estate law and representing condominium associations, the following represents some of the highlights from the new law that went into effect on July 1, 2010:
Florida Statute 718.112(2)(d)3b
Within 90-days of being elected or appointed to the board, each newly elected director shall certify in writing to the secretary of the association that he/she has read the association’s declaration of condominium, articles of incorporation, bylaws and current written policies. Further, he/she must certify in writing that he/she will uphold all such documents and faithfully discharge the responsibilities of office. Alternatively, the new board member may submit a certificate of completing the educational curriculum by a division approved education provider. Any director who fails to timely comply with this requirement will be suspended from office.
Florida Statute 718.116(1)(b)1
The liability of a first mortgagee who acquires title to a unit by foreclosure in a condominium is extended to up to 12 month’s of unpaid common expenses and regular periodic assessments. Previously, a mortgagee was responsible only for up to 6 month’s of unpaid assessments or 1 percent of the original mortgage debt.
Florida Statute 718.116(11)
Tenants who occupy a condominium unit must pay the condominium association upon written demand by the association, monies owed to the unit owner directly to the association instead if the unit owner is delinquent in payments to the association. To enforce this right the association must mail written notice to the unit owner of the association’s demand that the tenant pay the association directly. A tenant who acts in good faith paying such monies to the association is immune from any claim from the unit owner. If a tenant fails to pay the monies to the association after proper demand, the association is allowed to file an eviction action as if the association was the landlord.
Florida Statute 718.303(3)
If a unit owner is delinquent for more than 90-days for monies owed to the association, the association may suspend the unit owner or a unit owner’s occupant and/or tenant from the use of common elements or facilities of the association property until the monetary obligation is paid. The association may not prohibit use of common elements that are only accessed by that particular unit (i.e. balcony) or any that would permit access to the unit, utility services, parking or elevators. No fine or suspension is allowed unless the association provides at least 14-days advance written notice and an opportunity for a hearing to the unit owner.
Florida Statute 718.303(12)
A director, officer or committee member of an association may not directly receive any salary or compensation from the association for the performance of duties as an officer, director or member.
