Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 154
       
       
       
       
       
       
                                Ì120426ÃÎ120426                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/22/2023           .                                
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       The Committee on Regulated Industries (Bradley) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 1215 - 1301
    4  and insert:
    5         Section 13. Paragraph (b) of subsection (1) of section
    6  719.503, Florida Statutes, is amended, paragraph (d) is added to
    7  that subsection, and paragraph (d) is added to subsection (2) of
    8  that section, to read:
    9         719.503 Disclosure prior to sale.—
   10         (1) DEVELOPER DISCLOSURE.—
   11         (b) Copies of documents to be furnished to prospective
   12  buyer or lessee.—Until such time as the developer has furnished
   13  the documents listed below to a person who has entered into a
   14  contract to purchase a unit or lease it for more than 5 years,
   15  the contract may be voided by that person, entitling the person
   16  to a refund of any deposit together with interest thereon as
   17  provided in s. 719.202. The contract may be terminated by
   18  written notice from the proposed buyer or lessee delivered to
   19  the developer within 15 days after the buyer or lessee receives
   20  all of the documents required by this section. The developer may
   21  not close for 15 days after the execution of the agreement and
   22  delivery of the documents to the buyer as evidenced by a receipt
   23  for documents signed by the buyer unless the buyer is informed
   24  in the 15-day voidability period and agrees to close before the
   25  expiration of the 15 days. The developer shall retain in his or
   26  her records a separate signed agreement as proof of the buyer’s
   27  agreement to close before the expiration of the voidability
   28  period. The developer must retain such proof for a period of 5
   29  years after the date of the closing transaction. The documents
   30  to be delivered to the prospective buyer are the prospectus or
   31  disclosure statement with all exhibits, if the development is
   32  subject to s. 719.504, or, if not, then copies of the following
   33  which are applicable:
   34         1. The question and answer sheet described in s. 719.504,
   35  and cooperative documents, or the proposed cooperative documents
   36  if the documents have not been recorded, which shall include the
   37  certificate of a surveyor approximately representing the
   38  locations required by s. 719.104.
   39         2. The documents creating the association.
   40         3. The bylaws.
   41         4. The ground lease or other underlying lease of the
   42  cooperative.
   43         5. The management contract, maintenance contract, and other
   44  contracts for management of the association and operation of the
   45  cooperative and facilities used by the unit owners having a
   46  service term in excess of 1 year, and any management contracts
   47  that are renewable.
   48         6. The estimated operating budget for the cooperative and a
   49  schedule of expenses for each type of unit, including fees
   50  assessed to a shareholder who has exclusive use of limited
   51  common areas, where such costs are shared only by those entitled
   52  to use such limited common areas.
   53         7. The lease of recreational and other facilities that will
   54  be used only by unit owners of the subject cooperative.
   55         8. The lease of recreational and other common areas that
   56  will be used by unit owners in common with unit owners of other
   57  cooperatives.
   58         9. The form of unit lease if the offer is of a leasehold.
   59         10. Any declaration of servitude of properties serving the
   60  cooperative but not owned by unit owners or leased to them or
   61  the association.
   62         11. If the development is to be built in phases or if the
   63  association is to manage more than one cooperative, a
   64  description of the plan of phase development or the arrangements
   65  for the association to manage two or more cooperatives.
   66         12. If the cooperative is a conversion of existing
   67  improvements, the statements and disclosure required by s.
   68  719.616.
   69         13. The form of agreement for sale or lease of units.
   70         14. A copy of the floor plan of the unit and the plot plan
   71  showing the location of the residential buildings and the
   72  recreation and other common areas.
   73         15. A copy of all covenants and restrictions that will
   74  affect the use of the property and are not contained in the
   75  foregoing.
   76         16. If the developer is required by state or local
   77  authorities to obtain acceptance or approval of any dock or
   78  marina facilities intended to serve the cooperative, a copy of
   79  any such acceptance or approval acquired by the time of filing
   80  with the division pursuant to s. 719.502(1) or a statement that
   81  such acceptance or approval has not been acquired or received.
   82         17. Evidence demonstrating that the developer has an
   83  ownership, leasehold, or contractual interest in the land upon
   84  which the cooperative is to be developed.
   85         18. A copy of the inspector-prepared summary of the
   86  milestone inspection report as described in ss. 553.899 and
   87  719.301(4)(p), or a statement in conspicuous type indicating
   88  that the association has not completed the milestone inspection
   89  described in ss. 553.899 and 719.301(4)(p) or that the
   90  association is not required to perform a milestone inspection,
   91  as if applicable.
   92         19. A copy of the association’s most recent structural
   93  integrity reserve study or a statement in conspicuous type
   94  indicating that the association has not completed a structural
   95  integrity reserve study or that the association is not required
   96  to perform a structural integrity reserve study, as applicable.
   97         (d)Milestone inspection or structural integrity reserve
   98  study.—If the association is required to have completed a
   99  milestone inspection as described in ss. 553.899 and
  100  719.301(4)(p) or a structural integrity reserve study, and the
  101  association has failed to complete the milestone inspection or
  102  the structural integrity reserve study, each contract entered
  103  into after December 31, 2024, for the sale of a residential unit
  104  shall contain in conspicuous type a statement indicating that
  105  the association is required to have a milestone inspection or a
  106  structural integrity reserve study and has failed to complete
  107  such inspection or study, as appropriate. If the association is
  108  not required to have a milestone inspection as described in ss.
  109  553.899 and 719.301(4)(p) or a structural integrity reserve
  110  study, each contract entered into after December 31, 2024, for
  111  the sale of a residential unit shall contain in conspicuous type
  112  a statement indicating that the association is not required to
  113  have a milestone inspection or a structural integrity reserve
  114  study, as appropriate. If the association is required to have
  115  completed a milestone inspection as described in ss. 553.899 and
  116  719.301(4)(p) or a structural integrity reserve study, each
  117  contract entered into after December 31, 2024, for the sale of a
  118  residential unit shall contain in conspicuous type:
  119         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  120  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  121  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  122  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
  123  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  124  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
  125  719.106(1)(k), FLORIDA STATUTES, MORE THAN 15 DAYS, EXCLUDING
  126  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  127  THIS CONTRACT; and
  128         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  129  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  130  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  131  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  132  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  133  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  134  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
  135  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  136  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
  137  719.106(1)(k), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
  138  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
  139  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS,
  140  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
  141  BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
  142  OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS
  143  553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE
  144  ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY
  145  DESCRIBED IN SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA
  146  STATUTES, IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS
  147  AGREEMENT SHALL TERMINATE AT CLOSING.
  148  
  149  A contract that does not conform to the requirements of this
  150  paragraph is voidable at the option of the purchaser prior to
  151  closing.
  152         (2) NONDEVELOPER DISCLOSURE.—
  153         (d)If the association is required to have completed a
  154  milestone inspection as described in ss. 553.899 and
  155  719.301(4)(p) or a structural integrity reserve study, and the
  156  association has failed to complete the milestone inspection or
  157  the structural integrity reserve study, each contract entered
  158  into after December 31, 2024, for the sale of a residential unit
  159  shall contain in conspicuous type a statement indicating that
  160  the association is required to have a milestone inspection or a
  161  structural integrity reserve study and has failed to complete
  162  such inspection or study, as appropriate. If the association is
  163  not required to have a milestone inspection as described in ss.
  164  553.899 and 719.301(4)(p) or a structural integrity reserve
  165  study, each contract entered into after December 31, 2024, for
  166  the sale of a residential unit shall contain in conspicuous type
  167  a statement indicating that the association is not required to
  168  have a milestone inspection or a structural integrity reserve
  169  study, as appropriate. If the association is required to have
  170  completed a milestone inspection as described in ss. 553.899 and
  171  719.301(4)(p) or a structural integrity reserve study, each
  172  contract entered into after December 31, 2024, for the resale of
  173  a residential unit shall contain in conspicuous type:
  174         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  175  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  176  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  177  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
  178  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  179  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
  180  719.106(1)(k), FLORIDA STATUTES, MORE THAN 3 DAYS, EXCLUDING
  181  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  182  THIS CONTRACT; and
  183  
  184  ================= T I T L E  A M E N D M E N T ================
  185  And the title is amended as follows:
  186         Delete line 73
  187  and insert:
  188         by the act; amending s. 719.503, F.S.; revising the
  189         types of documents developers are required to provide
  190         to prospective buyers and lessees; requiring