Senate Bill 1452c1

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1998                           CS for SB 1452

    By the Committee on Regulated Industries and Senator Dudley





    315-1682-98

  1                      A bill to be entitled

  2         An act relating to condominiums and cooperative

  3         property; amending ss. 718.103, 719.103, F.S.;

  4         defining the term "buyer"; amending s. 721.05,

  5         F.S.; conforming a cross-reference; providing

  6         an effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

  9

10         Section 1.  Present subsections (5), (6), (7), (8),

11  (9), (10), (11), (12), (13), (14), (15), (16), (17), (18),

12  (19), (20), (21), (22), (23), (24), (25), (26), and (27) of

13  section 718.103, Florida Statutes, are redesignated as

14  subsections (6), (7), (8), (9), (10), (11), (12), (13), (14),

15  (15), (16), (17), (18), (19), (20), (21), (22), (23), (24),

16  (25), (26), (27) and (28), respectively, and a new subsection

17  (5) is added to that section to read:

18         718.103  Definitions.--As used in this chapter, the

19  term:

20         (5)  "Buyer" means a person who purchases a

21  condominium. The term "purchaser" may be used interchangeably

22  with the term "buyer."

23         Section 2.  Section 719.103, Florida Statutes, is

24  amended to read:

25         719.103  Definitions.--As used in this chapter:

26         (1)  "Assessment" means a share of the funds required

27  for the payment of common expenses, which from time to time is

28  assessed against the unit owner.

29         (2)  "Association" means the corporation for profit or

30  not for profit that owns the record interest in the

31  cooperative property or a leasehold of the property of a

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1  cooperative and that is responsible for the operation of the

  2  cooperative.

  3         (3)  "Board of administration" means the board of

  4  directors or other representative body responsible for

  5  administration of the association.

  6         (4)  "Buyer" means a person who purchases a

  7  cooperative. The term "purchaser" may be used interchangeably

  8  with the term "buyer."

  9         (5)(4)  "Bylaws" means the bylaws of the association

10  existing from time to time.

11         (6)(5)  "Committee" means a group of board members,

12  unit owners, or board members and unit owners appointed by the

13  board or a member of the board to make recommendations to the

14  board regarding the association budget or take action on

15  behalf of the board.

16         (7)(6)  "Common areas" means the portions of the

17  cooperative property not included in the units.

18         (8)  "Common areas" includes within its meaning the

19  following:

20         (a)  The cooperative property which is not included

21  within the units.

22         (b)  Easements through units for conduits, ducts,

23  plumbing, wiring, and other facilities for the furnishing of

24  utility services to units and the common areas.

25         (c)  An easement of support in every portion of a unit

26  which contributes to the support of a building.

27         (d)  The property and installations required for the

28  furnishing of utilities and other services to more than one

29  unit or to the common areas.

30         (e)  Any other part of the cooperative property

31  designated in the cooperative documents as common areas.

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1         (9)(7)  "Common expenses" means all expenses and

  2  assessments properly incurred by the association for the

  3  cooperative.

  4         (10)(8)  "Common surplus" means the excess of all

  5  receipts of the association--including, but not limited to,

  6  assessments, rents, profits, and revenues on account of the

  7  common areas--over the amount of common expenses.

  8         (11)  "Conspicuous type" means type in capital letters

  9  no smaller than the largest type on the page on which it

10  appears.

11         (12)(9)  "Cooperative" means that form of ownership of

12  real property wherein legal title is vested in a corporation

13  or other entity and the beneficial use is evidenced by an

14  ownership interest in the association and a lease or other

15  muniment of title or possession granted by the association as

16  the owner of all the cooperative property.

17         (13)(10)  "Cooperative documents" means:

18         (a)  The documents that create a cooperative,

19  including, but not limited to, articles of incorporation of

20  the association, bylaws, and the ground lease or other

21  underlying lease, if any.

22         (b)  The document evidencing a unit owner's membership

23  or share in the association.

24         (c)  The document recognizing a unit owner's title or

25  right of possession to his or her unit.

26         (14)(11)  "Cooperative parcel" means the shares or

27  other evidence of ownership in a cooperative representing an

28  undivided share in the assets of the association, together

29  with the lease or other muniment of title or possession.

30

31

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1         (15)(12)  "Cooperative property" means the lands,

  2  leaseholds, and personal property owned by a cooperative

  3  association.

  4         (16)(13)  "Developer" means a person who creates a

  5  cooperative or who offers cooperative parcels for sale or

  6  lease in the ordinary course of business, but does not include

  7  the owner or lessee of a unit who has acquired or leased the

  8  unit for his or her own occupancy, nor does it include a

  9  condominium association which creates a cooperative by

10  conversion of an existing residential condominium after

11  control of the association has been transferred to the unit

12  owners if, following the conversion, the unit owners will be

13  the same persons.

14         (17)  "Limited common areas" means those common areas

15  which are reserved for the use of a certain cooperative unit

16  or units to the exclusion of other units, as specified in the

17  cooperative documents.

18         (18)(14)  "Operation" or "operation of the cooperative"

19  includes the administration and management of the cooperative

20  property.

21         (19)  "Rental agreement" means any written agreement,

22  or oral agreement if for less duration than 1 year, providing

23  for use and occupancy of premises.

24         (20)  "Residential cooperative" means a cooperative

25  consisting of cooperative units, any of which are intended for

26  use as a private residence. A cooperative is not a residential

27  cooperative if the use of the units is intended as primarily

28  commercial or industrial and not more than three units are

29  intended to be used for private residence, domicile, or

30  homestead, or if the units are intended to be used as housing

31  for maintenance, managerial, janitorial, or other operational

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1  staff of the cooperative. If a cooperative is a residential

  2  cooperative under this definition, but has units intended to

  3  be commercial or industrial, then the cooperative is a

  4  residential cooperative with respect to those units intended

  5  for use as a private residence, domicile, or homestead, but

  6  not a residential cooperative with respect to those units

  7  intended for use commercially or industrially.

  8         (21)(15)  "Unit" means a part of the cooperative

  9  property which is subject to exclusive use and possession.  A

10  unit may be improvements, land, or land and improvements

11  together, as specified in the cooperative documents.

12         (22)(16)  "Unit owner" or "owner of a unit" means the

13  person holding a share in the cooperative association and a

14  lease or other muniment of title or possession of a unit that

15  is granted by the association as the owner of the cooperative

16  property.

17         (17)  "Residential cooperative" means a cooperative

18  consisting of cooperative units, any of which are intended for

19  use as a private residence.  A cooperative is not a

20  residential cooperative if the use of the units is intended as

21  primarily commercial or industrial and not more than three

22  units are intended to be used for private residence, domicile,

23  or homestead, or if the units are intended to be used as

24  housing for maintenance, managerial, janitorial, or other

25  operational staff of the cooperative.  If a cooperative is a

26  residential cooperative under this definition, but has units

27  intended to be commercial or industrial, then the cooperative

28  is a residential cooperative with respect to those units

29  intended for use as a private residence, domicile, or

30  homestead, but not a residential cooperative with respect to

31  those units intended for use commercially or industrially.

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1         (18)  "Rental agreement" means any written agreement,

  2  or oral agreement if for less duration than 1 year, providing

  3  for use and occupancy of premises.

  4         (19)  "Conspicuous type" means type in capital letters

  5  no smaller than the largest type on the page on which it

  6  appears.

  7         (20)  "Limited common areas" means those common areas

  8  which are reserved for the use of a certain cooperative unit

  9  or units to the exclusion of other units, as specified in the

10  cooperative documents.

11         (21)  "Common areas" includes within its meaning the

12  following:

13         (a)  The cooperative property which is not included

14  within the units.

15         (b)  Easements through units for conduits, ducts,

16  plumbing, wiring, and other facilities for the furnishing of

17  utility services to units and the common areas.

18         (c)  An easement of support in every portion of a unit

19  which contributes to the support of a building.

20         (d)  The property and installations required for the

21  furnishing of utilities and other services to more than one

22  unit or to the common areas.

23         (e)  Any other part of the cooperative property

24  designated in the cooperative documents as common areas.

25         Section 3.  Subsection (28) of section 721.05, Florida

26  Statutes, is amended to read:

27         721.05  Definitions.--As used in this chapter, the

28  term:

29         (28)  "Timeshare estate" means a right to occupy a

30  timeshare unit, coupled with a freehold estate or an estate

31  for years with a future interest in a timeshare property or a

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1452
    315-1682-98




  1  specified portion thereof.  The term shall also mean an

  2  interest in a condominium unit pursuant to s. 718.103 s.

  3  718.103(22).

  4         Section 4.  This act shall take effect upon becoming a

  5  law.

  6

  7          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  8                             SB 1452

  9

10  Defines the terms "buyer" and "purchaser" to be used
    interchangeably in laws relating to condominiums and
11  cooperatives.

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  7