Condominium

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Thanks to the Florida Legislature, community associations can now make use of technology to increase convenience and decrease costs and time required to conduct member votes. The homeowners’, condominium, and cooperative acts were all amended, effective July 1, 2015, to allow associations to conduct owner votes, including elections, using an internet-based online voting system if certain criteria are met. The Division of Florida Condominiums, Timeshares and Mobile Homes adopted rules to provide further guidance for electronic voting for condominiums and cooperatives, which were effective on March 20, 2016.

Where to BeginContinue Reading Electronic Voting in Community Association Elections Offers Convenience and Promotes Member Participation

Selling or buying a home within an association may not be as simple as buyer offers and seller accepts.

In Florida, condominium and homeowners’ associations may require potential buyers to submit an application to the association before allowing the buyer to close on the property. A buyer’s failure to timely submit an application to a…

This question comes up a lot from our association clients, who are often unsure about how to proceed, for fear of violating the automatic stay. Many associations know they should refrain from seeking collection efforts against homeowners for outstanding pre-petition assessments, but what about post-petition assessments? Further, can the association attempt to recoup pre-petition assessments without violating the automatic stay?

Case Study – Montalvo

A recent decision in In re Federico Augusto Montalvo, 546 B.R. 880 (M.D. Fla. 2016) addressed these issues. The owner of two condominium units filed Chapter 13 bankruptcy and specified in his Chapter 13 Plan that he was surrendering his interest in the units, although he held title to units during the pendency of the bankruptcy case.Continue Reading Can an Association Collect Assessments Once a Homeowner Files Chapter 13 Bankruptcy?

Community associations which have rental restrictions and policies that require association approval of prospective tenants should be cognizant of a new law that will go into effect this summer. Many association policies in this regard afford the association a fairly lengthy period of time, sometimes up to thirty days, to complete review and processing of…

Gated community associations are perceived as being safer communities, which attracts homeowners who are willing to pay a premium to feel safer in their homes. However, sometimes the expectation of having a high degree of security can backfire when a crime occurs within the gates.

We have seen an uptick in negligent security cases. Criminals will be criminals, and they find ways to exploit gaps in security measures. Homeowners who have taken their security for granted because of the gate and walls may be lax in taking personal precautions to protect themselves– leaving doors unlocked, not turning on security alarms, not being as vigilant when outside at night. Such oversight may result in the homeowner becoming a victim of a crime. Looking for deep pockets, the homeowner victims in some cases have sued their association for not having provided the security the homeowner claims they expect and have been guaranteed.Continue Reading Gated Communities: How Associations Can Reduce Liability for Neighborhood Crimes

While enjoying themselves on their balcony, condominium unit owners have been consistently molested by clouds of cigarette smoke emanating from their neighbor’s balcony. They want to know what the Association can do to help.

The answer depends on what is in the declaration of condominium.

Assuming the declaration doesn’t include a restriction against smoking on…

On October 26, 2015, the Division of Florida Condominiums, Timeshares, and Mobile Homes approved a proposed rule to amend and supplement the Florida Administrative Code provisions regarding condominium associations’ voting and elections. The proposed rule provides condominium associations with the option to allow the unit owners to vote using an online system, as an alternative to the traditional paper ballots.

While the language of the rule may change before it becomes final, as it stands, the following must occur before a condominium association may utilize an online voting system:Continue Reading Condominium Association – Requirements to Conduct Electronic Vote

If you own or are planning to buy a home in a “CDD” and aren’t sure what that means, this post is for you. A community development district, often referred to as a “CDD,” is a special purpose unit of local government created under Florida law, for purposes of financing, constructing, operating and maintaining community-wide infrastructure, improvements and services for the benefit of the properties within its boundaries. Examples of some of the types of improvements that might be included within a CDD are stormwater management systems, conservations areas, roadways, street lighting, and landscaping. Some CDD’s also own and operate utilities and recreational facilities such as clubhouses, swimming pools, and parks.

How does a Community Development District Operate?Continue Reading Understanding Home Ownership in a Community Development District

Since the real estate meltdown which began in 2006, many condominium and homeowner associations have struggled with a significant increase in delinquent assessments. Any money received by an association from a delinquent owner helps, and many associations were willing to work out payment plans with such owners.

Many of the delinquencies were the result of the large number of foreclosures in many communities and the time lenders were taking to complete the foreclosure. Often, many years passed while a home was in foreclosure and usually the assessments were unpaid during the entire time. While the situation is improving with the recovering real estate economy, there are still thousands of pending foreclosures in Florida and many owners still delinquent in assessments.

Sometimes a condominium or homeowner association can look to the new owner for payment of all outstanding delinquent assessments. (When and if an association can bill the new owner is beyond the scope of this article.) Sometimes the new owner may not know they can be liable for all past due assessments.Continue Reading “Let’s Make a Deal”: Dangers of Condominium and Homeowner Associations Accepting Partial Payments for Delinquent Assessments

Many clients come to us when they purchase a condominium or home for investment income. One of the questions that often arises is whether they should hold their investment real estate in a separate legal entity for tax and liability purposes.

Our recommendation for most clients is that they should consider the formation of a Florida limited liability company (LLC). A Florida limited liability company offers the liability protections most often associated with a corporation, while have the tax attributes of holding the property in your individual name.

In an LLC, each owner holds a “membership” interest, often described as “units” or “percentages” that define their individual ownership, much in the way that a corporation is owned by shares of stock. The LLC should have an Operating Agreement setting forth the terms and conditions (think of them as “rules”) of ownership. There are many options in deciding what should go into an Operating Agreement. You should discuss these options with your attorney when creating the LLC.

Protections of an LLC

Continue Reading Should I Form an LLC for My Beach Rental?