Important new Florida condo rules

BANKS TO PAY MORE? NOTFlorida Statute 718.116 has been amended to increase the liability of abank from 6 months to 12 months of unpaid assessments or 1% of the original mortgage whichever is less,when they foreclose and take title to a condominium unit. This is the most disappointing amendment of all. Despite all the hoopla – the bank’s liability to the association did not double -because the 1% cap still remains in place. In the overwhelming majority of cases, the bank will stillonly pay the association 1% of the mortgage andtheir liability to the association has not changed atall. A true doubling of the bank’s liability would have increased their cap to 2% of the mortgage.Next to nothing was gained here and worse yet,the less expensive the condominium unit is, the less likely it is that the bank’s liability increased to the association at all.

SUSPENSION OF USE RIGHTS In a condominium, if a unit owner is delinquent for more than 90 days paying a monetary obligation due tothe association, the association may now suspend the right of a unit owner or unit’s occupant, licensee or invitee to use common elements, common facilities or any other association property until the monetary obligationis paid.

EDUCATING BOARD MEMBERS In a condominium, a newly elected Board member can either sign an affidavit attesting that he or she has read the governing documents and Fla. Stat.718 or take an approved division course. Call ore-mail us if you are interested in our free DBPR approved seminar.

BOARD ELIGIBILITY The statute has now been amended to provide that in a condominium, a person who is delinquent in the payment of any fee, any fine, orpayment of any special or regular assessment inexcess of ninety (90) days is not eligible for board membership. Furthermore, any director or officer more than 90 days delinquent in the payment ofany monetary obligation due to the association isdeemed to have abandoned the office. The association may also suspend the voting rights of a member due to non payment of any monetary obligation due to the association which is more than 90 days delinquent.

EVICTING TENANTS For both condominiums and HOAs, the law now allows the association to demand that the tenant pay their rent directly to the association, instead of paying it to their landlord, if their landlord becomesdelinquent in paying any monetary obligation to the association. If the tenant fails to comply, the tenant can be evicted by the association.

all information is from

http://www.condocrazeandhoas.com

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