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In reference to some new roles of community association managers authorized by House Bill 7037, which became effective on July 1, 2014, the website, flcamtest.com directs some wise words to Florida community association managers: “As a practical tip, just because you are a CAM and CAN do those task [sic], does not mean you SHOULD do those tasks.”

Required Notices

Community associations, including condominium, residential homeowners’, and cooperative associations, are required to provide written notice to owners who are delinquent in the payment of association assessments prior to filing a lien against the delinquent owner’s property, and prior to foreclosing on the lien. While the statutes previously required certain information to be included in such notices, they now include actual forms that must be used for the notices, as well as a form for the release of the liens.

New Authorized Tasks for CAMSContinue Reading Community Association Managers Should Proceed Cautiously

House Bill 7037, recently adopted this past legislative session, expands the permitted practices of community association managers.

The bill, effective July 1, 2014, enlarges community association managers’ powers, some of which include:

  • determining the number of days required for statutory notices;
  • determining the amounts due to the association;
  • collecting amounts due to the association before the filing of a civil action;
  • calculating the number of votes required for a quorum;
  • negotiating monetary or performance terms of a contract subject to approval by an association; and,
  • drafting pre-arbitration demands.

Some members of the legal community have expressed concern that these new powers could constitute the unauthorized practice of law.

Under the Florida constitution, the Florida Supreme Court has the exclusive authority to both define and regulate the unauthorized practice of law. What constitutes the unauthorized practice of law has been partly defined as “[g]iving legal advice and counsel to others as to their rights and obligations under the law and the preparation of legal instruments.” Also included in the definition are activities requiring the interpretation of statutes, administrative rules, and community association governing documents.Continue Reading Florida Legislature Expands the Legal Work Permitted by Community Association Managers

Many condominium and homeowner’s associations have pet restrictions, ranging from prohibiting all pets to allowing only pets of a certain size and/or breed. These restrictions are increasingly being challenged and associations are finding it harder to enforce them and subjecting themselves to liability if they attempt to enforce them.

Exceptions Mandated By Federal Law

There…

As seems to be the trend with amendments to Chapter 720, Florida Statutes, which governs residential homeowners’ associations, the 2013 legislation increases regulation by the Division of Florida Condominiums, Timeshares and Mobile Homes (the “Division”) of residential homeowners’ associations. Specifically, the association manager, management firm, or the association is now required to submit a report…

My colleague, Sharon Zuccaro, previously blogged about Tips to Avoid Common Mistakes on Florida Homeowner Association (“HOA”) Disclosures. As Sharon pointed out, sellers of homes within HOAs are not required to deliver copies of the HOA’s governing documents to purchasers, but are required to provide a Disclosure form. The Condominium Act provides different disclosure requirements for non-developer sellers of condominium units.

Disclosure Required

The buyer of a condominium unit from an individual is entitled to receive copies of certain governing documents at the seller’s expense, if the buyer so requests in writing.  If such request is made, the buyer may cancel the contract for the sale of a condominium unit within 3 days, excluding Saturdays, Sundays and legal holidays after the contract was executed by the buyer and the buyer has received a current copy of the declaration of condominium, articles of incorporation, bylaws, and rules of the association, a copy of the most recent year-end financial report and frequently asked questions and answers document, and a copy of the condominium governance form prepared by the Division of Florida Condominiums, Timeshares and Mobile Homes.Continue Reading Required Disclosures to Buyers of Resale Condominium Units in Florida

Often the 6 o’clock news highlights the plight of a homeowner fighting his or her homeowners’ association (HOA) because the association is enforcing a rule that the owner doesn’t like and claims to have been unaware existed. The rule was probably there all along had the homeowner read their association documents. Also in the course of everyday conversations in this economy, homeowners who have fallen behind on their assessments are asking, “Can my condo/homeowners’ association really evict me for just a few thousand dollars I owe?” Following are answers to five common questions owners ask, often when it’s too late, about purchasing and living in a community association:

1.  Can my association really “evict” me for unpaid assessments?

Yes, although it is not an eviction, but a foreclosure. In Florida, condominium associations, by law, and HOAs, if provided in their recorded documents, do have a lien to secure the payment of assessments, late fees, interest and attorneys’ fees and costs of collection.Continue Reading Top Five Questions About HOA/Condominium Associations

In Maronda Homes, Inc. of Florida, et al, v. Lakeview Reserve Homeowners Association, Inc., the Supreme Court of Florida will soon determine whether common law implied warranties extend to the construction of common areas and facilities of a residential subdivision.

The Facts
After the turnover of control by the developer, Maronda Homes, the Lakeview Reserve community experienced drainage problems. Upon hiring an engineer to conduct an inspection, the Lakeview Reserve Association determined defects exist as to the paved streets, retention ponds, underground drainage pipes and grading of the site and lots. As a result of such defects, multiple lot owners allegedly experienced stagnant water, sinkholes, loss of grass, and erosion on their lots. 

The Association filed a complaint against Maronda Homes for breach of implied warranties of fitness for a particular purpose, merchantability, and habitability arising out of the alleged defective construction of the common area improvements. The Association claimed that the developer failed to construct the common areas properly to support a residential subdivision and the homes within it. The trial awarded a summary judgment to the developer. Continue Reading Florida Supreme Court to Hear Developer and HOA Battle Over Common Area Warranties

Non-compliance with Florida Statute §720.401 can be fatal to the closing of a purchase and sale contract. Given the current real estate climate, sellers of residential property cannot afford to lose a sale, or become involved in a lawsuit due to mistakes associated with the required homeowner’s association disclosure (“Disclosure”) specified in such statute. By understanding the law and being aware of the mistakes, a seller and his/her agent can increase the odds of closing a sale without an adverse surprise.

The Law

Florida Statute Section 720.401, requires owners of real property subject to a homeowner’s association(s), to deliver to a potential purchaser the Disclosure prior to contract execution. The form of the Disclosure must be substantially in the same form as identified in the statute.

Non-Compliance

As a practical matter, the Disclosure is seldom signed before contract execution because the selling agent does not typically know of all the required assessment information to be included in Continue Reading Tips to Avoid Common Mistakes on Florida HOA Disclosures

In 2010, the chapters of the Florida Statutes governing condominiums and homeowners associations were amended with the intention of providing community associations significantly more “teeth” to enforce collection of assessments from delinquent owners. Unfortunately, the new provisions contained several glitches which resulted in confusion for associations, owners, and community association practitioners. House Bill 1195 became effective July 1, 2011, with intent to remove such glitches and clarify provisions passed in 2010.

Prior to 2010, a homeowners’ association was permitted under Chapter 720 of the Florida Statutes to suspend an owners’ right to use common areas and facilities for the violation of provisions of the association’s governing documents. The statue did not provide such a remedy for past due assessments. One of the glitches of the 2010 legislation unintentionally resulted in the removal of the ability of a homeowners’ association to suspend an owner’s rights to use common areas and facilities for violations of the governing documents. However, the right to suspend common area use rights was added as a potential remedy for nonpayment of monetary obligations owed to the Association which are more than 90 days delinquent.

For condominium associations, prior to the 2010 legislation, suspension of common element use rights was not provided as a remedy in the statutes at all. The 2010 legislation provided for suspension of common elements and facilities as a potential remedy only for 90 day delinquencies, not for other violations of the governing documents. However, the statutory provisions providing for the hearing procedures required for suspending use rights, did reference the availability of common element use suspension as a remedy for other violations. These procedural provisions raised questions as to whether the right to suspend use of common elements and facilities was available for violations other than monetary delinquencies.

Homeowners’ Associations Right to Suspend

With the passing of House Bill 1195, a homeowners’ association may suspend the right of a member, or the member’s tenant, guest, or invitee, to use common areas and facilities both for failure to comply with any provision of the governing documents and for nonpayment ofContinue Reading Community Association Ability to Suspend Use and Voting Rights Clarified

Each year, the legislature makes changes to the laws regulating condominium, cooperative, and homeowner associations.  This year, many of the legislative changes were intended to address the unique problems which arose as a result of the severely depressed housing market and the effect it has had on these associations. This article summarizes some of legislative changes that took effect on July 1.
Continue Reading Recent Developments in Condominium Cooperative and Homeowner Association Law