FS 718

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FS 718
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2011-08-19 18:21:22
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FS 718
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  1. 718.104 Creation of condominiums; contents of declaration.--

    Every condominium created in this state shall be created pursuant to this chapter.
    (1) A condominium may be created on land owned in fee simple or held under a lease complying with the provisions of s. 718.401.

    • (2) A condominium is created by recording a declaration in the
    • public records of the county where the land is located, executed and
    • acknowledged with the requirements for a deed. All persons who have
    • record title to the interest in the land being submitted to condominium
    • ownership, or their lawfully authorized agents, must join in the
    • execution of the declaration
  2. (4) The declaration must contain or provide for the following matters:
    • (a) A statement submitting the property to condominium ownership.
    • (b) The name by which the condominium property is to be
    • identified, which shall include the word "condominium" or be followed by
    • the words "a condominium."
    • (c) The legal description of the land and, if a leasehold estate is submitted to condominium, an identification of the lease.
    • (d) An identification of each unit by letter, name, or number,
    • or combination thereof, so that no unit bears the same designation as
    • any other unit.
    • (e) A survey of the land which meets the minimum technical
    • standards set forth by the Board of Professional Surveyors and Mappers,
    • pursuant to s. 472.027, and a graphic description of the improvements in
    • which units are located and a plot plan
  3. (f) The undivided share of ownership of the common elements and common
    surplus of the condominium that is appurtenant to each unit stated as a
    percentage or a fraction of the whole. In the declaration
    • of condominium for residential condominiums created after April 1, 1992,
    • the ownership share of the common elements assigned to each residential
    • unit shall be based either upon the total square footage of each
    • residential unit in uniform relationship to the total square footage of
    • each other residential unit in the condominium or on an equal fractional
    • basis.
  4. (i) The name of the association, which
    must be a corporation for profit or a corporation not for profit.
  5. (j) Unit owners' membership and
    voting rights in the association
  6. (l) A copy of the bylaws, which shall be attached
    • as an exhibit. Defects or omissions in the bylaws shall not affect the
    • validity of the condominium or title to the condominium parcels.
  7. (n) The creation of a nonexclusive easement
    • for ingress and egress over streets, walks, and other rights-of-way
    • serving the units of a condominium, as part of the common elements
    • necessary to provide reasonable access to the public ways, or a
    • dedication of the streets, walks, and other rights-of-way to the public.
    • All easements for ingress and egress shall not be encumbered by any
    • leasehold or lien other than those on the condominium parcels,
  8. (5) The declaration as originally recorded or as amended under the
    procedures provided therein may include covenants and restrictions
    concerning the use, occupancy, and transfer
    of the units permitted by law with reference to real property.
  9. 718.105 Recording of declaration.--
    • (3) The clerk of the circuit court recording the declaration may, for
    • his or her convenience, file the exhibits of a declaration which
    • contains graphic descriptions of improvements in a separate book, and
    • shall indicate the place of filing upon the margin of the record of the
    • declaration.
  10. 718.107 Restraint upon separation and partition of common elements.-
    • (1) The undivided share in the common elements which is appurtenant to a
    • unit shall not be separated from it and shall pass with the title to
    • the unit, whether or not separately described.
  11. 718.108 Common elements.-
    • (1) "Common elements" includes within its meaning the following:
    • (a) The condominium property which is not included within the units.
    • (b) Easements through units for conduits, ducts, plumbing,
    • wiring, and other facilities for the furnishing of utility services to
    • units and the common elements.
    • (c) An easement of support in every portion of a unit which contributes to the support of a building.
    • (d) The property and installations required for the furnishing
    • of utilities and other services to more than one unit or to the common
    • elements.
    • (2) The declaration may designate other parts of the condominium property as common elements.
  12. 718.111 The association.--
    (1) CORPORATE ENTITY.--
    • (a) The operation of the condominium shall be by the association, which
    • must be a Florida corporation for profit or a Florida corporation not
    • for profit.
  13. The owners of units shall be
    members of the association
  14. The officers and directors of the association have a
    fiduciary relationship to the unit owners.
  15. (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, SUE, AND BE
    SUED.--The association may contract, sue, or be sued with respect to the
    exercise or nonexercise of its powers
    • For these purposes, the powers of the association include, but are not
    • limited to, the maintenance, management, and operation of the
    • condominium property.
  16. (4) ASSESSMENTS; MANAGEMENT OF COMMON ELEMENTS.--The association has the power to make and collect assessments
    • and to lease, maintain, repair, and replace the common elements or
    • association property; however, the association may not charge a use fee
    • against a unit owner for the use of common elements or association
    • property unless otherwise provided for in the declaration of condominium
    • or by a majority vote of the association or unless the charges relate
    • to expenses incurred by an owner having exclusive use of the common
    • elements or association property
  17. (5) RIGHT OF ACCESS TO UNITS.--The association has the irrevocable
    right of access to each unit during reasonable hours, when necessary for
    the
    • maintenance, repair, or replacement of any common elements or of any
    • portion of a unit to be maintained by the association pursuant to the
    • declaration or as necessary to prevent damage to the common elements or
    • to a unit or units.
  18. (7) TITLE TO PROPERTY.--

    (a) The association has the power to acquire title to property or
    otherwise hold, convey, lease, and mortgage association property for the
    use and benefit of its members.
    • The power to acquire personal property shall be exercised by the board
    • of administration. Except as otherwise permitted in subsections (8) and
    • (9) and in s. 718.114, no association may acquire, convey, lease, or
    • mortgage association real property except in the manner provided in the
    • declaration, and if the declaration does not specify the procedure, then
    • approval of 75 percent of the total voting interests shall be required.
  19. An association may also obtain and maintain liability insurance for
    directors and officers, insurance for the benefit of association
    employees, and flood insurance for common elements, association
    property, and units.
    • Adequate insurance, regardless of any requirement in the declaration of
    • condominium for coverage by the association for "full insurable value,"
    • "replacement cost," or the like, may include reasonable deductibles as
    • determined by the board based upon available funds or predetermined
    • assessment authority at the time that the insurance is obtained.
  20. (b) Every hazard insurance policy issued or renewed on or after January
    1, 2004, to protect the condominium shall provide primary coverage for:
    • 1. All portions of the condominium property located outside the units;
    • 2. The condominium property located inside the units as such
    • property was initially installed, or replacements thereof of like kind
    • and quality and in accordance with the original plans and specifications
    • or, if the original plans and specifications are not available, as they
    • existed at the time the unit was initially conveyed; and
    • 3. All portions of the condominium property for which the declaration of condominium requires coverage by the association.
  21. Anything to the contrary notwithstanding, the terms "condominium
    property," "building," "improvements," "insurable improvements," "common
    elements," "association property," or any other term found in the
    declaration of condominium which defines the scope of property or
    casualty insurance that a condominium association must obtain shall
    exclude
    • all floor, wall, and ceiling coverings, electrical fixtures, appliances,
    • air conditioner or heating equipment, water heaters, water filters,
    • built-in cabinets and countertops, and window treatments, including
    • curtains, drapes, blinds, hardware, and similar window treatment
    • components, or replacements of any of the foregoing which are located
    • within the boundaries of a unit and serve only one unit and all air
    • conditioning compressors that service only an individual unit, whether
    • or not located within the unit boundaries
  22. (d) The association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control
    • or disburse funds of the association. The insurance policy or fidelity
    • bond must cover the maximum funds that will be in the custody of the
    • association or its management agent at any one time.
  23. (12) OFFICIAL RECORDS.-

    (a) From the inception of the association, the association shall
    maintain each of the following items, when applicable, which shall
    constitute the official records of the association:
    • 1. A copy of the plans, permits, warranties, and other items provided by the developer pursuant to s. 718.301(4).
    • 2. A photocopy of the recorded declaration of condominium of
    • each condominium operated by the association and of each amendment to
    • each declaration.
    • 3. A photocopy of the recorded bylaws of the association and of each amendment to the bylaws.
  24. cont
    • 4. A certified copy of the articles of incorporation of the
    • association, or other documents creating the association, and of each
    • amendment thereto.
    • 5. A copy of the current rules of the association.
    • 6. A book or books which contain the minutes of all meetings of
    • the association, of the board of directors, and of unit owners, which
    • minutes shall be retained for a period of not less than 7 years.
    • 7. A current roster of all unit owners and their mailing
    • addresses, unit identifications, voting certifications, and, if known,
    • telephone numbers. The association shall also maintain the electronic
    • mailing addresses and the numbers designated by unit owners for
    • receiving notice sent by electronic transmission of those unit owners
    • consenting to receive notice by electronic transmission. The electronic
    • mailing addresses and numbers provided by unit owners to receive notice
    • by electronic transmission shall be removed from association records
    • when consent to receive notice by electronic transmission is revoked.
    • However, the association is not liable for an erroneous disclosure of
    • the electronic mail address or the number for receiving electronic
    • transmission of notices.
  25. cont
    • 8. All current insurance policies of the association and condominiums operated by the association.
    • 9. A current copy of any management agreement, lease, or other
    • contract to which the association is a party or under which the
    • association or the unit owners have an obligation or responsibility.
    • 10. Bills of sale or transfer for all property owned by the association.
    • 11. Accounting records for the association and separate
    • accounting records for each condominium which the association operates.
    • All accounting records shall be maintained for a period of not less than
    • 7 years. The accounting records shall include, but are not limited to:
    • a. Accurate, itemized, and detailed records of all receipts and expenditures.
    • b. A current account and a monthly, bimonthly, or quarterly
    • statement of the account for each unit designating the name of the unit
    • owner, the due date and amount of each assessment, the amount paid upon
    • the account, and the balance due.
    • c. All audits, reviews, accounting statements, and financial reports of the association or condominium.
    • d. All contracts for work to be performed. Bids for work to be
    • performed shall also be considered official records and shall be
    • maintained for a period of 1 year.
  26. cont
    • 12. Ballots, sign-in sheets, voting proxies, and all other papers
    • relating to voting by unit owners, which shall be maintained for a
    • period of 1 year from the date of the election, vote, or meeting to
    • which the document relates.
    • 13. All rental records, when the association is acting as agent for the rental of condominium units.
    • 14. A copy of the current question and answer sheet as described by s. 718.504.
    • 15. All other records of the association not specifically
    • included in the foregoing which are related to the operation of the
    • association.
  27. 15. All other records of the association not specifically included in
    the foregoing which are related to the operation of the association.
    • (b) The official records of the association shall be maintained within
    • the state. The records of the association shall be made available to a
    • unit owner within 5 working days after receipt of written request by the
    • board or its designee. This paragraph may be complied with by having a
    • copy of the official records of the association available for inspection
    • or copying on the condominium property or association property.
  28. (c) The official records of the association are open to inspection by
    any association member or the authorized representative of such member
    at all
    • reasonable times. The right to inspect the records includes the right to
    • make or obtain copies, at the reasonable expense, if any, of the
    • association member. The association may adopt reasonable rules regarding
    • the frequency, time, location, notice, and manner of record inspections
    • and copying. The failure of an association to provide the records
    • within 10 working days after receipt of a written request shall create a
    • rebuttable presumption that the association willfully failed to comply
    • with this paragraph.
  29. the following records shall not be accessible to unit owners:
    • 1. Any record protected by the lawyer-client privilege as described
    • in s. 90.502; and any record protected by the work-product privilege,
    • including any record prepared by an association attorney or prepared at
    • the attorney's express direction; which reflects a mental impression,
    • conclusion, litigation strategy, or legal theory of the attorney or the
    • association, and which was prepared exclusively for civil or criminal
    • litigation or for adversarial administrative proceedings, or which was
    • prepared in anticipation of imminent civil or criminal litigation or
    • imminent adversarial administrative proceedings until the conclusion of
    • the litigation or adversarial administrative proceedings.
    • 2. Information obtained by an association in connection with the approval of the lease, sale, or other transfer of a unit.
    • 3. Medical records of unit owners.
  30. (13) FINANCIAL REPORTING.--Within
    • 90 days after the end of the fiscal year, or annually on a date provided
    • in the bylaws, the association shall prepare and complete, or contract
    • for the preparation and completion of, a financial report for the
    • preceding fiscal year. Within 21 days after the final financial report
    • is completed by the association or received from the third party, but
    • not later than 120 days after the end of the fiscal year or other date
    • as provided in the bylaws, the association shall mail to each unit owner
    • at the address last furnished to the association by the unit owner, or
    • hand deliver to each unit owner, a copy of the financial report or a
    • notice that a copy of the financial report will be mailed or hand
    • delivered to the unit owner, without charge, upon receipt of a written
    • request from the unit owner. The division shall adopt rules setting
    • forth uniform accounting principles and standards to be used by all
    • associations and shall adopt rules addressing financial reporting
    • requirements for multicondominium associations. In adopting such rules,
    • the division shall consider the number of members and annual revenues of
    • an association. Financial reports shall be prepared as follows:
  31. (a) An association that meets the criteria of this paragraph shall
    prepare or cause to be prepared a complete set of financial statements
    in accordance with generally accepted accounting principles. The
    financial statements shall be based upon the association's total annual
    revenues, as follows:
    • 1. An association with total annual revenues of $100,000 or more,
    • but less than $200,000, shall prepare compiled financial statements.
    • 2. An association with total annual revenues of at least
    • $200,000, but less than $400,000, shall prepare reviewed financial
    • statements.
    • 3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements.
    • (b)1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.
  32. 2. An association which operates less than 50 units, regardles
    • of the association's annual revenues, shall prepare a report of cash
    • receipts and expenditures in lieu of financial statements required by
    • paragraph (a).
  33. 3. A report of cash receipts and disbursements must disclose
    • the amount of receipts by accounts and receipt classifications and the
    • amount of expenses by accounts and expense classifications, including,
    • but not limited to, the following, as applicable: costs for security,
    • professional and management fees and expenses, taxes, costs for
    • recreation facilities, expenses for refuse collection and utility
    • services, expenses for lawn care, costs for building maintenance and
    • repair, insurance costs, administration and salary expenses, and
    • reserves accumulated and expended for capital expenditures, deferred
    • maintenance, and any other category for which the association maintains
    • reserves.
  34. (c) An association may prepare or cause to be prepared, without a meeting of or approval by the unit owners:
    • 1. Compiled, reviewed, or audited financial statements, if the
    • association is required to prepare a report of cash receipts and
    • expenditures;
    • 2. Reviewed or audited financial statements, if the association is required to prepare compiled financial statements; or
    • 3. Audited financial statements if the association is required to prepare reviewed financial statements.
  35. (d) If approved by a majority of the voting interests present at a
    properly called meeting of the association, an association may prepare
    or cause to be prepared:
    • 1. A report of cash receipts and expenditures in lieu of a compiled, reviewed, or audited financial statement;
    • 2. A report of cash receipts and expenditures or a compiled
    • financial statement in lieu of a reviewed or audited financial
    • statement; or
    • 3. A report of cash receipts and expenditures, a compiled
    • financial statement, or a reviewed financial statement in lieu of an
    • audited financial statement.
  36. Such meeting and approval must occur prior
    to the end of the fiscal year and is effective only for the fiscal year in which the vote is taken.
  37. 718.111(13)d: Waiver of financial reports

    This change allows the waiver of the financial reporting requirement to be effective for the followingfiscal year as well as the current one.
    Additionally, any audit or review prepared under this section shall be paid for by the developer if doneprior to turnover of control of the association. An association may not waive the financial reportingrequirements of this section for more than three consecutive years.Based on a recent e‐mail between John W. Johnson, director of governmental affairs for the FICPA, andJonathon M. Peet, chief of compliance for the Division of Florida Condominiums, Timeshares and MobileHomes, “The Division will be taking the position that the law applies to waivers taken after the effectivedate of the law change. Therefore, financial reporting requirements may be waived for threeconsecutive fiscal year ends following Oct. 1, 2008.”
  38. ANNUAL BUDGET718.112(2)(f)4:
    Proxies and waiver of reserves in the annual budget
    Now proxy questions relating to waiving or reducing the funding of reserves or using existing reservefunds for purposes other than the purposes for which the reserves were intended shall contain thefollowing statement in capitalized, bold letters in a font size larger than any other used on the face ofthe proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OFEXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIALASSESSMENTS REGARDING THOSE ITEMS.
  39. ACCOUNTING RECORDS
    718.111(12)(a)16 expands the definition of accounting records to include a copy of the inspectionreport as provided for in S.718.301(4)(p) (see 718.113(6) below for the complete definition).718.111(12)(b) has been amended as follows: The official records of the association shall be maintainedwithin the state for at least seven years. The records of the association shall be made available to a unitowner within 45 miles of the condominium property or within the county in which the condominiumproperty is located within five working days after receipt of written request by the board or its designee.However, such distance requirement does not apply to an association governing a timesharecondominium. This paragraph may be complied with by having a copy of the official records of theassociation available for inspection or copying on the condominium property, or the association mayoffer the option of making the records of the association available to a unit owner either electronicallyvia the Internet or by allowing the records to be viewed in electronic format on a computer screen andprinted upon request.
  40. FINANCIAL REPORTING718.111(13) Financial Reporting: The section relating to the rules for financial reporting has beenexpanded as follows:
    • The rules shall include, but not be limited to, uniform accounting principles and standards for stating thedisclosure of at least a summary of the reserves, including information as to whether such reserves arebeing funded at a level to prevent the need for a special assessment and, if not, the amount ofassessments necessary to bring reserves up to the level necessary to avoid a special assessment.
    • Theperson preparing the financial reports shall be entitled to rely on an inspection report prepared for orprovided to the association to meet the fiscal and fiduciary standards of this chapter (see 718.113(6)below for the complete definition).
  41. MAINTENANCE718.113(6): An inspection report is now required and defined as follows:
    As to any condominium building greater than three stories in height, at least every five years, and withinfive years if not available for inspection on Oct. 1, 2008, the board shall have the condominium buildinginspected to provide a report under seal of an architect or engineer authorized to practice in this stateattesting to the required maintenance, useful life and replacement costs of the common elements.
  42. TRANSFER OF ASSOCIATION CONTROL718.301(1)(e) and (f): Transfer of association control now also will occur:
    (e) When the developer files a petition seeking protection in bankruptcy or(f) When a receiver for the developer is appointed by a circuit court and is not discharged within 30 daysafter such appointment.718.301(4)(p) A Turnover Inspection Report is now required to be provided by the developer and isdefined as follows:A report included in the official records, under seal of an architect or engineer authorized to practice inthis state, attesting to required maintenance, useful life and replacement costs of the followingapplicable common elements comprising a turnover inspection report

    :1. Roof2. Structure3. Fireproofing and fire protection systems4. Elevators5. Heating and cooling systems6. Plumbing7. Electrical systems8. Swimming pool or spa equipment9. Seawalls10. Pavement and parking areas11. Drainage systems12. Painting13. Irrigation systemsThis information, which goes far beyond what inormally is reserved for in a condominiumassociation, may cause some additional issues for the turnover audit.The reader
  43. 718.101 Short title.—This chapter shall be known
    and may be cited as the “Condominium Act.”
  44. 718.111 The association.—(1) CORPORATE ENTITY.—
    • (a) The
    • operation of the condominium shall be by the association, which must be
    • a Florida corporation for profit or a Florida corporation not for
    • profit. However, any association which was in existence on January 1,
    • 1977, need not be incorporated. The owners of units shall be
    • shareholders or members of the association. The officers and directors
    • of the association have a fiduciary relationship to the unit owners. It
    • is the intent of the Legislature that nothing in this paragraph shall be
    • construed as providing for or removing a requirement of a fiduciary
    • relationship between any manager employed by the association and the
    • unit owners. An officer, director, or manager may not solicit, offer to
    • accept, or accept any thing or service of value for which consideration
    • has not been provided for his or her own benefit or that of his or her
    • immediate family, from any person providing or proposing to provide
    • goods or services to the association. Any such officer, director, or
    • manager who knowingly so solicits, offers to accept, or accepts any
    • thing or service of value is subject to a civil penalty pursuant to s.
    • 718.501(1)(d). However, this paragraph does not prohibit an officer,
    • director, or manager from accepting services or items received in
    • connection with trade fairs or education programs. An association may
    • operate more than one condominium.(b) A
    • director of the association who is present at a meeting of its board at
    • which action on any corporate matter is taken shall be presumed to have
    • assented to the action taken unless he or she votes against such action
    • or abstains from voting. A director of the association who abstains
    • from voting on any action taken on any corporate matter shall be
    • presumed to have taken no position with regard to the action. Directors
    • may not vote by proxy or by secret ballot at board meetings, except that
    • officers may be elected by secret ballot. A vote or abstention for each
    • member present shall be recorded in the minutes.(c) A unit owner does not have any authority to act for the association by reason of being a unit owner.(d) As
    • required by s. 617.0830, an officer, director, or agent shall discharge
    • his or her duties in good faith, with the care an ordinarily prudent
    • person in a like position would exercise under similar circumstances,
    • and in a manner he or she reasonably believes to be in the interests of
    • the association. An officer, director, or agent shall be liable for
    • monetary damages as provided in s. 617.0834 if such officer, director,
    • or agent breached or failed to perform his or her duties and the breach
    • of, or failure to perform, his or her duties constitutes a violation of
    • criminal law as provided in s. 617.0834; constitutes a transaction from
    • which the officer or director derived an improper personal benefit,
    • either directly or indirectly; or constitutes recklessness or an act or
    • omission that was in bad faith, with malicious purpose, or in a manner
    • exhibiting wanton and willful disregard of human rights, safety, or
    • property.(2) POWERS AND DUTIES.—The
    • powers and duties of the association include those set forth in this
    • section and, except as expressly limited or restricted in this chapter,
    • those set forth in the declaration and bylaws and chapters 607 and 617,
    • as applicable.
  45. (11) INSURANCE.—In
    order to protect the safety, health, and welfare of the people of the
    State of Florida and to ensure consistency in the provision of insurance
    coverage to condominiums and their unit owners, this subsection applies
    to every residential condominium in the state, regardless of the date
    of its declaration of condominium. It is the intent of the Legislature
    to encourage lower or stable insurance premiums for associations
    described in this subsection.(a) Adequate
    property insurance, regardless of any requirement in the declaration of
    condominium for coverage by the association for full insurable value,
    replacement cost, or similar coverage, must be based on the replacement
    cost of the property to be insured as determined by an independent
    insurance appraisal or update of a prior appraisal.
    The replacement cost must be determined at least once every 36 months.
  46. 718.501(1)(d). The accounting records must include, but are not limited to:
    • a. Accurate, itemized, and detailed records of all receipts and expenditures.b. A
    • current account and a monthly, bimonthly, or quarterly statement of the
    • account for each unit designating the name of the unit owner, the due
    • date and amount of each assessment, the amount paid on the account, and
    • the balance due.c. All audits, reviews, accounting statements, and financial reports of the association or condominium.d. All
    • contracts for work to be performed. Bids for work to be performed are
    • also considered official records and must be maintained by the
    • association
  47. The
    failure of an association to provide the records within 10 working days
    after receipt of a written request creates a rebuttable presumption
    that the association willfully failed to comply with this paragraph. A
    unit owner who is denied access to official records is entitled to the
    actual damages or minimum damages
    • for
    • the association’s willful failure to comply. Minimum damages are $50
    • per calendar day for up to 10 days, beginning on the 11th working day
    • after receipt of the written request.
  48. 2. An
    association that operates fewer than 75 units, regardless of the
    association’s annual revenues, shall prepare a report of cash receipts
    and expenditures in lieu of financial statements required by paragraph
    (a).
  49. (14) COMMINGLING.—All funds collected by an association shall be maintained separately
    • association’s
    • name. For investment purposes only, reserve funds may be commingled
    • with operating funds of the association. Commingled operating and
    • reserve funds shall be accounted for separately, and a commingled
    • account shall not, at any time, be less than the amount identified as
    • reserve funds. This subsection does not prohibit a multicondominium
    • association from commingling the operating funds of separate
    • condominiums or the reserve funds of separate condominiums. Furthermore,
    • for investment purposes only, a multicondominium association may
    • commingle the operating funds of separate condominiums with the reserve
    • funds of separate condominiums. A manager or business entity required to
    • be licensed or registered under s. 468.432, or an agent, employee,
    • officer, or director of an association, shall not commingle any
    • association funds with his or her funds or with the funds of any other
    • condominium association or the funds of a community association as
    • defined in s. 468.431.
  50. (2) REQUIRED PROVISIONS.—The bylaws shall provide for the following and, if they do not do so, shall be deemed to include the following
    • 1. The
    • form of administration of the association shall be described indicating
    • the title of the officers and board of administration and specifying
    • the powers, duties, manner of selection and removal, and compensation,
    • if any, of officers and boards. In the absence of such a provision, the
    • board of administration shall be composed of five members, except in the
    • case of a condominium which has five or fewer units, in which case in a
    • not-for-profit corporation the board shall consist of not fewer than
    • three members. In the absence of provisions to the contrary in the
    • bylaws, the board of administration shall have a president, a secretary,
    • and a treasurer, who shall perform the duties of such officers
    • customarily performed by officers of corporations. Unless prohibited in
    • the bylaws, the board of administration may appoint other officers and
    • grant them the duties it deems appropriate. Unless otherwise provided in
    • the bylaws, the officers shall serve without compensation and at the
    • pleasure of the board of administration. Unless otherwise provided in
    • the bylaws, the members of the board shall serve without compensation.2. When
    • a unit owner files a written inquiry by certified mail with the board
    • of administration, the board shall respond in writing to the unit owner
    • within 30 days of receipt of the inquiry. The board’s response shall
    • either give a substantive response to the inquirer, notify the inquirer
    • that a legal opinion has been requested, or notify the inquirer that
    • advice has been requested from the division. If the board requests
    • advice from the division, the board shall, within 10 days of its receipt
    • of the advice, provide in writing a substantive response to the
    • inquirer. If a legal opinion is requested, the board shall, within 60
    • days after the receipt of the inquiry, provide in writing a substantive
    • response to the inquiry. The failure to provide a substantive response
    • to the inquiry as provided herein precludes the board from recovering
    • attorney’s fees and costs in any subsequent litigation, administrative
    • proceeding, or arbitration arising out of the inquiry.
  51. (d) Unit owner meetings.—1. An
    annual meeting of the unit owners shall be held at the location
    provided in the association bylaws and, if the bylaws are silent as to
    the location, the meeting shall be held within 45 miles of the
    condominium property.
    • However, such distance requirement does not apply to an association governing a timeshare condominium.2. Unless
    • the bylaws provide otherwise, a vacancy on the board caused by the
    • expiration of a director’s term shall be filled by electing a new board
    • member, and the election must be by secret ballot. An election is not
    • required if the number of vacancies equals or exceeds the number of
    • candidates. For purposes of this paragraph, the term “candidate” means
    • an eligible person who has timely submitted the written notice, as
    • described in sub-subparagraph 4.a., of his or her intention to become a
    • candidate. Except in a timeshare condominium, or if the staggered term
    • of a board member does not expire until a later annual meeting, or if
    • all members’ terms would otherwise expire but there are no candidates,
    • the terms of all board members expire at the annual meeting, and such
    • members may stand for reelection unless prohibited by the bylaws. If the
    • bylaws permit staggered terms of no more than 2 years and upon approval
    • of a majority of the total voting interests, the association board
    • members may serve 2-year staggered terms. If the number of board members
    • whose terms expire at the annual meeting equals or exceeds the number
    • of candidates, the candidates become members of the board effective upon
    • the adjournment of the annual meeting. Unless the bylaws provide
    • otherwise, any remaining vacancies shall be filled by the affirmative
    • vote of the majority of the directors making up the newly constituted
    • board even if the directors constitute less than a quorum or there is
    • only one director. In a condominium association of more than 10 units or
    • in a condominium association that does not include timeshare units or
    • timeshare interests, coowners of a unit may not serve as members of the
    • board of directors at the same time unless they own more than one unit
    • or unless there are not enough eligible candidates to fill the vacancies
    • on the board at the time of the vacancy. Any unit owner desiring to be a
    • candidate for board membership must comply with sub-subparagraph 4.a.
    • and must be eligible to serve on the board of directors at the time of
    • the deadline for submitting a notice of intent to run in order to have
    • his or her name listed as a proper candidate on the ballot or to serve
    • on the board. A person who has been suspended or removed by the division
    • under this chapter, or who is delinquent in the payment of any fee,
    • fine, or special or regular assessment as provided in paragraph (n), is
    • not eligible for board membership. A person who has been convicted of
    • any felony in this state or in a United States District or Territorial
    • Court, or who has been convicted of any offense in another jurisdiction
    • which would be considered a felony if committed in this state, is not
    • eligible for board membership unless such felon’s civil rights have been
    • restored for at least 5 years as of the date such person seeks election
    • to the board. The validity of an action by the board is not affected if
    • it is later determined that a board member is ineligible for board
    • membership due to having been convicted of a felony.
  52. (e) Budget meeting.—
    • 1. Any
    • meeting at which a proposed annual budget of an association will be
    • considered by the board or unit owners shall be open to all unit owners.
    • At least 14 days prior to such a meeting, the board shall hand deliver
    • to each unit owner, mail to each unit owner at the address last
    • furnished to the association by the unit owner, or electronically
    • transmit to the location furnished by the unit owner for that purpose a
    • notice of such meeting and a copy of the proposed annual budget. An
    • officer or manager of the association, or other person providing notice
    • of such meeting, shall execute an affidavit evidencing compliance with
    • such notice requirement, and such affidavit shall be filed among the
    • official records of the association.2.a. If
    • a board adopts in any fiscal year an annual budget which requires
    • assessments against unit owners which exceed 115 percent of assessments
    • for the preceding fiscal year, the board shall conduct a special meeting
    • of the unit owners to consider a substitute budget if the board
    • receives, within 21 days after adoption of the annual budget, a written
    • request for a special meeting from at least 10 percent of all voting
    • interests. The special meeting shall be conducted within 60 days after
    • adoption of the annual budget. At least 14 days prior to such special
    • meeting, the board shall hand deliver to each unit owner, or mail to
    • each unit owner at the address last furnished to the association, a
    • notice of the meeting. An officer or manager of the association, or
    • other person providing notice of such meeting shall execute an affidavit
    • evidencing compliance with this notice requirement, and such affidavit
    • shall be filed among the official records of the association. Unit
    • owners may consider and adopt a substitute budget at the special
    • meeting. A substitute budget is adopted if approved by a majority of all
    • voting interests unless the bylaws require adoption by a greater
    • percentage of voting interests. If there is not a quorum at the special
    • meeting or a substitute budget is not adopted, the annual budget
    • previously adopted by the board shall take effect as scheduled.b. Any
    • determination of whether assessments exceed 115 percent of assessments
    • for the prior fiscal year shall exclude any authorized provision for
    • reasonable reserves for repair or replacement of the condominium
    • property, anticipated expenses of the association which the board does
    • not expect to be incurred on a regular or annual basis, or assessments
    • for betterments to the condominium property
  53. (f) Annual budget.—
    • 1. The
    • proposed annual budget of estimated revenues and expenses shall be
    • detailed and shall show the amounts budgeted by accounts and expense
    • classifications, including, if applicable, but not limited to, those
    • expenses listed in s. 718.504(21). A multicondominium association shall
    • adopt a separate budget of common expenses for each condominium the
    • association operates and shall adopt a separate budget of common
    • expenses for the association. In addition, if the association maintains
    • limited common elements with the cost to be shared only by those
    • entitled to use the limited common elements as provided for in s.
    • 718.113(1), the budget or a schedule attached thereto shall show amounts
    • budgeted therefor. If, after turnover of control of the association to
    • the unit owners, any of the expenses listed in s. 718.504(21) are not
    • applicable, they need not be listed.2. In
    • addition to annual operating expenses, the budget shall include reserve
    • accounts for capital expenditures and deferred maintenance. These
    • accounts shall include, but are not limited to, roof replacement,
    • building painting, and pavement resurfacing, regardless of the amount of
    • deferred maintenance expense or replacement cost, and for any other
    • item for which the deferred maintenance expense or replacement cost
    • exceeds $10,000. The amount to be reserved shall be computed by means of
    • a formula which is based upon estimated remaining useful life and
    • estimated replacement cost or deferred maintenance expense of each
    • reserve item. The association may adjust replacement reserve assessments
    • annually to take into account any changes in estimates or extension of
    • the useful life of a reserve item caused by deferred maintenance. This
    • subsection does not apply to an adopted budget in which the members of
    • an association have determined, by a majority vote at a duly called
    • meeting of the association, to provide no reserves or less reserves than
    • required by this subsection.
  54. (g) Assessments.—The manner of collecting from the unit owners their shares of the common expenses shall be stated in the bylaws
  55. Assessments shall be made against units not less frequently than
    • quarterly in an amount which is not less than that required to provide
    • funds in advance for payment of all of the anticipated current operating
    • expenses and for all of the unpaid operating expenses previously
    • incurred. Nothing in this paragraph shall preclude the right of an
    • association to accelerate assessments of an owner delinquent in payment
    • of common expenses. Accelerated assessments shall be due and payable on
    • the date the claim of lien is filed. Such accelerated assessments shall
    • include the amounts due for the remainder of the budget year in which
    • the claim of lien was filed
  56. 718.115 Common expenses and common surplus.—
    • (1)(a) Common
    • expenses include the expenses of the operation, maintenance, repair,
    • replacement, or protection of the common elements and association
    • property, costs of carrying out the powers and duties of the
    • association, and any other expense, whether or not included in the
    • foregoing, designated as common expense by this chapter, the
    • declaration, the documents creating the association, or the bylaws.
    • Common expenses also include reasonable transportation services,
    • insurance for directors and officers, road maintenance and operation
    • expenses, in-house communications, and security services, which are
    • reasonably related to the general benefit of the unit owners even if
    • such expenses do not attach to the common elements or property of the
    • condominium. However, such common expenses must either have been
    • services or items provided on or after the date control of the
    • association is transferred from the developer to the unit owners or must
    • be services or items provided for in the condominium documents or
    • bylaws. Unless the manner of payment or allocation of expenses is
    • otherwise addressed in the declaration of condominium, the expenses of
    • any items or services required by any federal, state, or local
    • governmental entity to be installed, maintained, or supplied to the
    • condominium property by the association, including, but not limited to,
    • firesafety equipment or water and sewer service where a master meter
    • serves the condominium, shall be common expenses whether or not such
    • items or services are specifically identified as common expenses in the
    • declaration of condominium, articles of incorporation, or bylaws of the
    • association.
  57. (d) If
    provided in the declaration, the cost of communications services as
    defined in chapter 202, information services, or Internet services
    obtained pursuant to a bulk contract is a common expense
    • If
    • the declaration does not provide for the cost of such services as a
    • common expense, the board may enter into such a contract, and the cost
    • of the service will be a common expense. The cost for the services under
    • a bulk rate contract may be allocated on a per-unit basis rather than a
    • percentage basis if the declaration provides for other than an equal
    • sharing of common expenses, and any contract entered into before July 1,
    • 1998, in which the cost of the service is not equally divided among all
    • unit owners, may be changed by vote of a majority of the voting
    • interests present at a regular or special meeting of the association, to
    • allocate the cost equally among all units. The contract must be for at
    • least 2 years.
  58. 718.116 Assessments; liability; lien and priority; interest; collection.—(1)(a) A
    unit owner, regardless of how his or her title has been acquired,
    including by purchase at a foreclosure sale or by deed in lieu of
    foreclosure, is liable for all assessments which come due while he or
    she is the unit owner. Additionally, a unit owner is jointly and
    severally liable with the previous owner for all unpaid assessments that
    came due up to the time of transfer of title. This liability is without
    prejudice to any right the owner may have to recover from the previous
    owner the amounts paid by the owner.(b)1. The
    liability of a first mortgagee or its successor or assignees who
    acquire title to a unit by foreclosure or by deed in lieu of foreclosure
    for the unpaid assessments that became due before the mortgagee’s
    acquisition of title is limited to the lesser of:
    • a. The
    • unit’s unpaid common expenses and regular periodic assessments which
    • accrued or came due during the 12 months immediately preceding the
    • acquisition of title and for which payment in full has not been received
    • by the association; orb. One
    • percent of the original mortgage debt. The provisions of this paragraph
    • apply only if the first mortgagee joined the association as a defendant
    • in the foreclosure action. Joinder of the association is not required
    • if, on the date the complaint is filed, the association was dissolved or
    • did not maintain an office or agent for service of process at a
    • location which was known to or reasonably discoverable by the mortgagee.2. An
    • association, or its successor or assignee, that acquires title to a
    • unit through the foreclosure of its lien for assessments is not liable
    • for any unpaid assessments, late fees, interest, or reasonable
    • attorney’s fees and costs that came due before the association’s
    • acquisition of title in favor of any other association, as defined in s.
    • 718.103(2) or s. 720.301(9), which holds a superior lien interest on
    • the unit. This subparagraph is intended to clarify existing law.(c) The
    • person acquiring title shall pay the amount owed to the association
    • within 30 days after transfer of title. Failure to pay the full amount
    • when due shall entitle the association to record a claim of lien against
    • the parcel and proceed in the same manner as provided in this section
    • for the collection of unpaid assessments.(d) With
    • respect to each timeshare unit, each owner of a timeshare estate
    • therein is jointly and severally liable for the payment of all
    • assessments and other charges levied against or with respect to that
    • unit pursuant to the declaration or bylaws, except to the extent that
    • the declaration or bylaws may provide to the contrary.(e) Notwithstanding
    • the provisions of paragraph (b), a first mortgagee or its successor or
    • assignees who acquire title to a condominium unit as a result of the
    • foreclosure of the mortgage or by deed in lieu of foreclosure of the
    • mortgage shall be exempt from liability for all unpaid assessments
    • attributable to the parcel or chargeable to the previous owner which
    • came due prior to acquisition of title if the first mortgage was
    • recorded prior to April 1, 1992. If, however, the first mortgage was
    • recorded on or after April 1, 1992, or on the date the mortgage was
    • recorded, the declaration included language incorporating by reference
    • future amendments to this chapter, the provisions of paragraph (b) shall
    • apply.(f) The
    • provisions of this subsection are intended to clarify existing law, and
    • shall not be available in any case where the unpaid assessments sought
    • to be recovered by the association are secured by a lien recorded prior
    • to the recording of the mortgage. Notwithstanding the provisions of
    • chapter 48, the association shall be a proper party to intervene in any
    • foreclosure proceeding to seek equitable relief.(g) For
    • purposes of this subsection, the term “successor or assignee” as used
    • with respect to a first mortgagee includes only a subsequent holder of
    • the first mortgage.(2) The
    • liability for assessments may not be avoided by waiver of the use or
    • enjoyment of any common element or by abandonment of the unit for which
    • the assessments are made.(3) Assessments
    • and installments on assessments which are not paid when due bear
    • interest at the rate provided in the declaration, from the due date
    • until paid. The rate may not exceed the rate allowed by law, and, if no
    • rate is provided in the declaration, interest accrues at the rate of 18
    • percent per year. If provided by the declaration or bylaws, the
    • association may, in addition to such interest, charge an administrative
    • late fee of up to the greater of $25 or 5 percent of each delinquent
    • installment for which the payment is late. Any payment received by an
    • association must be applied first to any interest accrued by the
    • association, then to any administrative late fee, then to any costs and
    • reasonable attorney’s fees incurred in collection, and then to the
    • delinquent assessment. The foregoing is applicable notwithstanding any
    • restrictive endorsement, designation, or instruction placed on or
    • accompanying a payment. A late fee is not subject to chapter 687 or s.
    • 718.303(4)
  59. (5)(a) The association has a lien on each condominium parcel to secure the payment of assessments.
    • Except
    • as otherwise provided in subsection (1) and as set forth below, the
    • lien is effective from and shall relate back to the recording of the
    • original declaration of condominium, or, in the case of lien on a parcel
    • located in a phase condominium, the last to occur of the recording of
    • the original declaration or amendment thereto creating the parcel.
    • However, as to first mortgages of record, the lien is effective from and
    • after recording of a claim of lien in the public records of the county
    • in which the condominium parcel is located. Nothing in this subsection
    • shall be construed to bestow upon any lien, mortgage, or certified
    • judgment of record on April 1, 1992, including the lien for unpaid
    • assessments created herein, a priority which, by law, the lien,
    • mortgage, or judgment did not have before that date.(b) To
    • be valid, a claim of lien must state the description of the condominium
    • parcel, the name of the record owner, the name and address of the
    • association, the amount due, and the due dates. It must be executed and
    • acknowledged by an officer or authorized agent of the association. The
    • lien is not effective 1 year after the claim of lien was recorded
    • unless, within that time, an action to enforce the lien is commenced.
    • The 1-year period is automatically extended for any length of time
    • during which the association is prevented from filing a foreclosure
    • action by an automatic stay resulting from a bankruptcy petition filed
    • by the parcel owner or any other person claiming an interest in the
    • parcel. The claim of lien secures all unpaid assessments that are due
    • and that may accrue after the claim of lien is recorded and through the
    • entry of a final judgment, as well as interest and all reasonable costs
    • and attorney’s fees incurred by the association incident to the
    • collection process. Upon payment in full, the person making the payment
    • is entitled to a satisfaction of the lien.(c) By
    • recording a notice in substantially the following form, a unit owner or
    • the unit owner’s agent or attorney may require the association to
    • enforce a recorded claim of lien against his or her condominium parcel:
  60. NOTICE OF CONTEST OF LIENTO: (Name and address of association) You are notified that the undersigned contests the claim of lien filed by you on , (year) , and recorded in Official Records Book at Page , of the public records of
    County, Florida, and that the time within which you may file suit to
    enforce your lien is limited to 90 days from the date of service of this
    notice. Executed this day of , (year) .Signed: (Owner or Attorney)
  61. After notice of
    contest of lien has been recorded, the clerk of the circuit court shall
    mail a copy of the recorded notice to the association by certified
    mail, return receipt requested, at the address shown in the claim of
    lien or most recent amendment to it and shall certify to the service on
    the face of the notice. Service is complete upon mailing. After service,
    the association has 90 days in which to file an action to enforce the
    lien; and, if the action is not filed within the 90-day period, the lien
    is void. However, the 90-day period shall be extended for any length of
    time during which the association is prevented from filing its action
    because of an automatic stay resulting from the filing of a bankruptcy
    petition by the unit owner or by any other person claiming an interest
    in the parcel.
    • (6)(a) The
    • association may bring an action in its name to foreclose a lien for
    • assessments in the manner a mortgage of real property is foreclosed and
    • may also bring an action to recover a money judgment for the unpaid
    • assessments without waiving any claim of lien. The association is
    • entitled to recover its reasonable attorney’s fees incurred in either a
    • lien foreclosure action or an action to recover a money judgment for
    • unpaid assessments.(b) No
    • foreclosure judgment may be entered until at least 30 days after the
    • association gives written notice to the unit owner of its intention to
    • foreclose its lien to collect the unpaid assessments. If this notice is
    • not given at least 30 days before the foreclosure action is filed, and
    • if the unpaid assessments, including those coming due after the claim of
    • lien is recorded, are paid before the entry of a final judgment of
    • foreclosure, the association shall not recover attorney’s fees or costs.
    • The notice must be given by delivery of a copy of it to the unit owner
    • or by certified or registered mail, return receipt requested, addressed
    • to the unit owner at his or her last known address; and, upon such
    • mailing, the notice shall be deemed to have been given, and the court
    • shall proceed with the foreclosure action and may award attorney’s fees
    • and costs as permitted by law. The notice requirements of this
    • subsection are satisfied if the unit owner records a notice of contest
    • of lien as provided in subsection (5). The notice requirements of this
    • subsection do not apply if an action to foreclose a mortgage on the
    • condominium unit is pending before any court; if the rights of the
    • association would be affected by such foreclosure; and if actual,
    • constructive, or substitute service of process has been made on the unit
    • owner.
  62. (c) If
    the unit owner remains in possession of the unit after a foreclosure
    judgment has been entered, the court, in its discretion, may require the
    unit owner to pay a reasonable rental for the unit.
    • If
    • the unit is rented or leased during the pendency of the foreclosure
    • action, the association is entitled to the appointment of a receiver to
    • collect the rent. The expenses of the receiver shall be paid by the
    • party which does not prevail in the foreclosure action.
  63. (4) Except
    as otherwise provided in this chapter, no lien may be filed by the
    association against a condominium unit until 30 days after the date on
    which a notice of intent to file a lien has been delivered to
    • the
    • owner by registered or certified mail, return receipt requested, and by
    • first-class United States mail to the owner at his or her last address
    • as reflected in the records of the association, if the address is within
    • the United States, and delivered to the owner at the address of the
    • unit if the owner’s address as reflected in the records of the
    • association is not the unit address. If the address reflected in the
    • records is outside the United States, sending the notice to that address
    • and to the unit address by first-class United States mail is
    • sufficient. Delivery of the notice shall be deemed given upon mailing as
    • required by this subsection.

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