Beginning July 1, 2017, Florida community associations will have to comply with more burdensome estoppel requirements.
The 2017 Florida legislature just recently passed a new law that will require associations to comply with a request for an estoppel certificate within 10 business days. If they fail to do so, they will forfeit their right to charge a fee for the preparation and delivery of the document.
Furthermore, the fee that an association may charge is now strictly regulated. The fee is capped at $250 if there are no delinquent amounts owed to the association for the applicable unit or parcel, or $400 if a delinquent amount is owed. However, associations may charge an additional $100 if an expedited request is made, and the association delivers the estoppel within three (3) business days after the request.
In addition to the changes to the timeframe and fees related estoppel certificate issuance, the new law will require associations to provide more information than previously required. Associations will have to provide, among other things, information about parking or garage spaces, any open violations noticed to the owner or mortgagee, and contact information for all insurance maintained by the association.
While the law appears strict on its face, the intent behind the law is to provide more uniformity to the estoppel process in order to help buyers and sellers expedite their closings.
If you or your association have any questions about this new law, please give me a call at 239- 344-1231 or email me at firstname.lastname@example.org.