CODING: Words stricken are deletions; words underlined are additions.
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Senator Dudley moved the following amendment:
SENATE AMENDMENT
Bill No. CS/CS/HB 3321
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Dudley moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Section 718.103, Florida Statutes, is
18 amended to read:
19 718.103 Definitions.--As used in this chapter, the
20 term:
21 (1) "Assessment" means a share of the funds which are
22 required for the payment of common expenses, which from time
23 to time is assessed against the unit owner.
24 (2) "Association" means, in addition to those entities
25 responsible for the operation of common elements owned in
26 undivided shares by unit owners, any entity which operates or
27 maintains other real property in which condominium unit owners
28 have use rights, where unit owner membership in the entity is
29 composed exclusively of condominium unit owners or their
30 elected or appointed representatives, and where membership in
31 the entity is a required condition of unit ownership.
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1 (3) "Association property" means that property, real
2 and personal, which is owned or leased by, or is dedicated by
3 a recorded plat to, the association for the use and benefit of
4 its members.
5 (4) "Board of administration" means the board of
6 directors or other representative body which is responsible
7 for administration of the association.
8 (5) "Buyer" means a person who purchases a
9 condominium. The term "purchaser" may be used interchangeably
10 with the term "buyer."
11 (6)(5) "Bylaws" means the bylaws of the association as
12 they exist from time to time.
13 (7)(6) "Committee" means a group of board members,
14 unit owners, or board members and unit owners appointed by the
15 board or a member of the board to make recommendations to the
16 board regarding the association budget or take action on
17 behalf of the board.
18 (8)(7) "Common elements" means the portions of the
19 condominium property which are not included in the units.
20 (9)(8) "Common expenses" means all expenses and
21 assessments which are properly incurred by the association for
22 the condominium.
23 (10)(9) "Common surplus" means the excess of all
24 receipts of the association collected on behalf of a
25 condominium (including, but not limited to, assessments,
26 rents, profits, and revenues on account of the common
27 elements) over the common expenses.
28 (11)(10) "Condominium" means that form of ownership of
29 real property which is created pursuant to the provisions of
30 this chapter, which is comprised of units that may be owned by
31 one or more persons, and in which there is, appurtenant to
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Bill No. CS/CS/HB 3321
Amendment No.
1 each unit, an undivided share in common elements.
2 (12)(11) "Condominium parcel" means a unit, together
3 with the undivided share in the common elements which is
4 appurtenant to the unit.
5 (13)(12) "Condominium property" means the lands,
6 leaseholds, and personal property that are subjected to
7 condominium ownership, whether or not contiguous, and all
8 improvements thereon and all easements and rights appurtenant
9 thereto intended for use in connection with the condominium.
10 (14)(13) "Conspicuous type" means type in capital
11 letters no smaller than the largest type, exclusive of
12 headings, on the page on which it appears and, in all cases,
13 at least 10-point type. Where conspicuous type is required,
14 it must be separated on all sides from other type and print.
15 Conspicuous type may be used in contracts for purchase or
16 public offering statements only where required by law.
17 (15)(14) "Declaration" or "declaration of condominium"
18 means the instrument or instruments by which a condominium is
19 created, as they are from time to time amended.
20 (16)(15) "Developer" means a person who creates a
21 condominium or offers condominium parcels for sale or lease in
22 the ordinary course of business, but does not include an owner
23 or lessee of a condominium or cooperative unit who has
24 acquired the unit for his or her own occupancy, nor does it
25 include a cooperative association which creates a condominium
26 by conversion of an existing residential cooperative after
27 control of the association has been transferred to the unit
28 owners if, following the conversion, the unit owners will be
29 the same persons who were unit owners of the cooperative and
30 no units are offered for sale or lease to the public as part
31 of the plan of conversion.
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1 (17) "Division" means the Division of Florida Land
2 Sales, Condominiums, and Mobile Homes of the Department of
3 Business and Professional Regulation.
4 (18)(16) "Land" means, unless otherwise defined in the
5 declaration as hereinafter provided, the surface of a legally
6 described parcel of real property and includes, unless
7 otherwise specified in the declaration and whether separate
8 from or including such surface, airspace lying above and
9 subterranean space lying below such surface. However, if so
10 defined in the declaration, the term "land" may mean all or
11 any portion of the airspace or subterranean space between two
12 legally identifiable elevations and may exclude the surface of
13 a parcel of real property and may mean any combination of the
14 foregoing, whether or not contiguous.
15 (19)(17) "Limited common elements" means those common
16 elements which are reserved for the use of a certain
17 condominium unit or units to the exclusion of other units, as
18 specified in the declaration of condominium.
19 (20)(18) "Operation" or "operation of the condominium"
20 includes the administration and management of the condominium
21 property.
22 (21)(19) "Rental agreement" means any written
23 agreement, or oral agreement if for less duration than 1 year,
24 providing for use and occupancy of premises.
25 (22)(20) "Residential condominium" means a condominium
26 consisting of condominium units, any of which are intended for
27 use as a private temporary or permanent residence, except that
28 a condominium is not a residential condominium if the use for
29 which the units are intended is primarily commercial or
30 industrial and not more than three units are intended to be
31 used for private residence, and are intended to be used as
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Amendment No.
1 housing for maintenance, managerial, janitorial, or other
2 operational staff of the condominium. With respect to a
3 condominium that is not a timeshare condominium, a residential
4 unit includes a unit intended as a private temporary or
5 permanent residence as well as a unit not intended for
6 commercial or industrial use. With respect to a timeshare
7 condominium, the timeshare instrument as defined in s.
8 721.05(28) shall govern the intended use of each unit in the
9 condominium. If a condominium is a residential condominium but
10 contains units intended to be used for commercial or
11 industrial purposes, then, with respect to those units which
12 are not intended for or used as private residences, the
13 condominium is not a residential condominium. A condominium
14 which contains both commercial and residential units is a
15 mixed-use condominium subject to the requirements of s.
16 718.404.
17 (23)(21) "Special assessment" means any assessment
18 levied against unit owners other than the assessment required
19 by a budget adopted annually.
20 (24)(22) "Timeshare estate" means any interest in a
21 unit under which the exclusive right of use, possession, or
22 occupancy of the unit circulates among the various purchasers
23 of a timeshare plan pursuant to chapter 721 on a recurring
24 basis for a period of time.
25 (25)(23) "Timeshare unit" means a unit in which
26 timeshare estates have been created.
27 (26)(24) "Unit" means a part of the condominium
28 property which is subject to exclusive ownership. A unit may
29 be in improvements, land, or land and improvements together,
30 as specified in the declaration.
31 (27)(25) "Unit owner" or "owner of a unit" means a
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1 record owner of legal title to a condominium parcel.
2 (28)(26) "Voting certificate" means a document which
3 designates one of the record title owners, or the corporate,
4 partnership, or entity representative, who is authorized to
5 vote on behalf of a condominium unit that is owned by more
6 than one owner or by any entity.
7 (29)(27) "Voting interest" means the voting rights
8 distributed to the association members pursuant to s.
9 718.104(4)(i).
10 Section 2. Subsections (6) and (11), paragraph (c) of
11 subsection (12), and subsection (15) of section 718.111,
12 Florida Statutes, are amended to read:
13 718.111 The association.--
14 (6) OPERATION OF PHASE CONDOMINIUMS CREATED PRIOR TO
15 1977.--Notwithstanding any provision of this chapter, an
16 association may operate two or more residential condominiums
17 in which the initial condominium declaration was recorded
18 prior to January 1, 1977, a phase project initially created
19 pursuant to former s. 711.64 and may continue to so operate
20 such condominiums project as though it were a single
21 condominium for purposes of financial matters, including
22 budgets, assessments, accounting, recordkeeping, and similar
23 matters, if provision is made for such consolidated operation
24 in the applicable declarations of each such condominium as
25 initially recorded or in the bylaws as initially adopted. An
26 association for such condominiums may also provide for
27 consolidated financial operation as described in this section
28 either by amending its declaration pursuant to s.
29 718.110(1)(a) or by amending its bylaws and having the
30 amendment approved by not less than two-thirds of the total
31 voting interests. Notwithstanding any provision in this
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1 chapter, common expenses for residential condominiums in such
2 a project being operated by a single association may be
3 assessed against all unit owners in such project pursuant to
4 the proportions or percentages established therefor in the
5 declarations as initially recorded or in the bylaws as
6 initially adopted, subject, however, to the limitations of ss.
7 718.116 and 718.302.
8 (11) INSURANCE.--
9 (a) A unit-owner controlled The association shall use
10 its best efforts to obtain and maintain adequate insurance to
11 protect the association, the association property, the common
12 elements, and the condominium property required to be insured
13 by the association pursuant to paragraph (b). If the
14 association is developer-controlled, the association shall
15 exercise due diligence to obtain and maintain such insurance.
16 Failure to obtain and maintain adequate insurance during any
17 period of developer control shall constitute a breach of
18 fiduciary responsibility by the developer appointed members of
19 the board of directors of the association, unless said members
20 can show that despite such failure, they have exercised due
21 diligence. An The association may also obtain and maintain
22 liability insurance for directors and officers, insurance for
23 the benefit of association employees, and flood insurance for
24 common elements, association property, and units. An
25 association or group of associations may self-insure against
26 claims against the association, the association property, and
27 the condominium property required to be insured by an
28 association, upon compliance with ss. 624.460-624.488. A copy
29 of each policy of insurance in effect shall be made available
30 for inspection by unit owners at reasonable times.
31 (b) Every hazard policy which is issued to protect a
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Amendment No.
1 condominium building shall provide that the word "building"
2 wherever used in the policy include, but not necessarily be
3 limited to, fixtures, installations, or additions comprising
4 that part of the building within the unfinished interior
5 surfaces of the perimeter walls, floors, and ceilings of the
6 individual units initially installed, or replacements thereof
7 of like kind or quality, in accordance with the original plans
8 and specifications, or as they existed at the time the unit
9 was initially conveyed if the original plans and
10 specifications are not available. However, unless prior to
11 October 1, 1986, the association is required by the
12 declaration to provide coverage therefor, the word "building"
13 does not include unit floor coverings, wall coverings, or
14 ceiling coverings, and, as to contracts entered into after
15 July 1, 1992, does not include the following equipment if it
16 is located within a unit and the unit owner is required to
17 repair or replace such equipment: electrical fixtures,
18 appliances, air conditioner or heating equipment, water
19 heaters, or built-in cabinets. With respect to the coverage
20 provided for by this paragraph, the unit owners shall be
21 considered additional insureds under the policy.
22 (c) Every insurance policy issued to an individual
23 unit owner shall provide that the coverage afforded by such
24 policy is excess over the amount recoverable under any other
25 policy covering the same property without rights of
26 subrogation against the association.
27 (d) The association shall obtain and maintain adequate
28 insurance or fidelity bonding of all persons who control or
29 disburse funds of the association. The insurance policy or
30 fidelity bond must cover the maximum funds that will be in the
31 custody of the association or its management agent at any one
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Amendment No.
1 time. As used in this paragraph, the term "persons who control
2 or disburse funds of the association" includes, but is not
3 limited to, those individuals authorized to sign checks and
4 the president, secretary, and treasurer of the association.
5 The association shall bear the cost of bonding.
6 (12) OFFICIAL RECORDS.--
7 (c) The official records of the association are open
8 to inspection by any association member or the authorized
9 representative of such member at all reasonable times. The
10 right to inspect the records includes the right to make or
11 obtain copies, at the reasonable expense, if any, of the
12 association member. The association may adopt reasonable
13 rules regarding the frequency, time, location, notice, and
14 manner of record inspections and copying. The failure of an
15 association to provide the records within 10 working days
16 after receipt of a written request shall create a rebuttable
17 presumption that the association willfully failed to comply
18 with this paragraph. A unit owner who is denied access to
19 official records is entitled to the actual damages or minimum
20 damages for the association's willful failure to comply with
21 this paragraph. The minimum damages shall be $50 per calendar
22 day up to 10 days, the calculation to begin on the 11th
23 working day after receipt of the written request. The failure
24 to permit inspection of the association records as provided
25 herein entitles any person prevailing in an enforcement action
26 to recover reasonable attorney's fees from the person in
27 control of the records who, directly or indirectly, knowingly
28 denied access to the records for inspection. The association
29 shall maintain an adequate number of copies of the
30 declaration, articles of incorporation, bylaws, and rules, and
31 all amendments to each of the foregoing, as well as the
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Amendment No.
1 question and answer sheet provided for in s. 718.504 and
2 year-end financial information required in this section on the
3 condominium property to ensure their availability to unit
4 owners and prospective purchasers, and may charge its actual
5 costs for preparing and furnishing these documents to those
6 requesting the same. Notwithstanding the provisions of this
7 paragraph, the following records shall not be accessible to
8 unit owners:
9 1. A record which was prepared by an association
10 attorney or prepared at the attorney's express direction,
11 which reflects a mental impression, conclusion, litigation
12 strategy, or legal theory of the attorney or the association,
13 and which was prepared exclusively for civil or criminal
14 litigation or for adversarial administrative proceedings, or
15 which was prepared in anticipation of imminent civil or
16 criminal litigation or imminent adversarial administrative
17 proceedings until the conclusion of the litigation or
18 adversarial administrative proceedings.
19 2. Information obtained by an association in
20 connection with the approval of the lease, sale, or other
21 transfer of a unit.
22 3. Medical records of unit owners.
23 (15) COMMINGLING.--All funds shall be maintained
24 separately in the association's name. Reserve and operating
25 funds of the association shall not be commingled unless
26 combined for investment purposes. This subsection is not meant
27 to prohibit prudent investment of association funds even if
28 combined with operating or other reserve funds of the same
29 association, but such funds must be accounted for separately,
30 and the combined account balance may not, at any time, be less
31 than the amount identified as reserve funds in the combined
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Amendment No.
1 account. No manager or business entity required to be licensed
2 or registered under s. 468.432, and no agent, employee,
3 officer, or director of a condominium association shall
4 commingle any association funds with his or her funds or with
5 the funds of any other condominium association or community
6 association as defined in s. 468.431.
7 Section 3. Subsection (2) of section 718.112, Florida
8 Statutes, is amended to read:
9 718.112 Bylaws.--
10 (2) REQUIRED PROVISIONS.--The bylaws shall provide for
11 the following and, if they do not do so, shall be deemed to
12 include the following:
13 (a) Administration.--
14 1. The form of administration of the association shall
15 be described indicating the title of the officers and board of
16 administration and specifying the powers, duties, manner of
17 selection and removal, and compensation, if any, of officers
18 and boards. In the absence of such a provision, the board of
19 administration shall be composed of five members, except in
20 the case of a condominium which has five or fewer units, in
21 which case in a not-for-profit corporation the board shall
22 consist of not fewer than three members. In the absence of
23 provisions to the contrary in the bylaws, the board of
24 administration shall have a president, a secretary, and a
25 treasurer, who shall perform the duties of such officers
26 customarily performed by officers of corporations. Unless
27 prohibited in the bylaws, the board of administration may
28 appoint other officers and grant them the duties it deems
29 appropriate. Unless otherwise provided in the bylaws, the
30 officers shall serve without compensation and at the pleasure
31 of the board of administration. Unless otherwise provided in
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Amendment No.
1 the bylaws, the members of the board shall serve without
2 compensation.
3 2. When a unit owner files a written inquiry by
4 certified mail with the board of administration, the board
5 shall respond in writing to the unit owner within 30 days of
6 receipt of the inquiry. The board's response shall either
7 give a substantive response to the inquirer, notify the
8 inquirer that a legal opinion has been requested, or notify
9 the inquirer that advice has been requested from the division.
10 If the board requests advice from the division, the board
11 shall, within 10 days of its receipt of the advice, provide in
12 writing a substantive response to the inquirer. If a legal
13 opinion is requested, the board shall, within 60 days after
14 the receipt of the inquiry, provide in writing a substantive
15 response to the inquiry. The failure to provide a substantive
16 response to the inquiry as provided herein precludes the board
17 from recovering attorney's fees and costs in any subsequent
18 litigation, administrative proceeding, or arbitration arising
19 out of the inquiry. The association may through its board of
20 administration adopt reasonable rules and regulations
21 regarding the frequency and manner of responding to unit owner
22 inquiries, one of which may be that the association is only
23 obligated to respond to one written inquiry per unit in any
24 given 30-day period. In such a case, any additional inquiry
25 or inquiries must be responded to in the subsequent 30-day
26 period, or periods, as applicable.
27 (b) Quorum; voting requirements; proxies.--
28 1. Unless a lower number is provided in the bylaws,
29 the percentage of voting interests required to constitute a
30 quorum at a meeting of the members shall be a majority of the
31 voting interests. Unless otherwise provided in this chapter or
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Amendment No.
1 in the declaration, articles of incorporation, or bylaws, and
2 except as provided in subparagraph (d)3., decisions shall be
3 made by owners of a majority of the voting interests
4 represented at a meeting at which a quorum is present.
5 2. Except as specifically otherwise provided herein,
6 after January 1, 1992, unit owners may not vote by general
7 proxy, but may vote by limited proxies substantially
8 conforming to a limited proxy form adopted by the division.
9 Limited proxies and general proxies may be used to establish a
10 quorum. Limited proxies shall be used for votes taken to
11 waive or reduce reserves in accordance with subparagraph
12 (f)2.; for votes taken to waive financial statement
13 requirements as provided by s. 718.111(14); for votes taken to
14 amend the declaration pursuant to s. 718.110; for votes taken
15 to amend the articles of incorporation or bylaws pursuant to
16 this section; and for any other matter for which this chapter
17 requires or permits a vote of the unit owners. Except as
18 provided in paragraph (d), after January 1, 1992, no proxy,
19 limited or general, shall be used in the election of board
20 members. General proxies may be used for other matters for
21 which limited proxies are not required, and may also be used
22 in voting for nonsubstantive changes to items for which a
23 limited proxy is required and given. Notwithstanding the
24 provisions of this subparagraph, unit owners may vote in
25 person at unit owner meetings. Nothing contained herein shall
26 limit the use of general proxies or require the use of limited
27 proxies for any agenda item or election at any meeting of a
28 timeshare condominium association.
29 3. Any proxy given shall be effective only for the
30 specific meeting for which originally given and any lawfully
31 adjourned meetings thereof. In no event shall any proxy be
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Amendment No.
1 valid for a period longer than 90 days after the date of the
2 first meeting for which it was given. Every proxy is
3 revocable at any time at the pleasure of the unit owner
4 executing it.
5 (c) Board of administration meetings.--Meetings of the
6 board of administration at which a quorum of the members is
7 present shall be open to all unit owners. Any unit owner may
8 tape record or videotape meetings of the board of
9 administration. The right to attend such meetings includes
10 the right to speak at such meetings with reference to all
11 designated agenda items. The division shall adopt reasonable
12 rules governing the tape recording and videotaping of the
13 meeting. The association may adopt reasonable rules governing
14 the frequency, duration, and manner of unit owner statements.
15 Adequate notice of all meetings, which notice shall
16 specifically incorporate an identification of agenda items,
17 shall be posted conspicuously on the condominium property at
18 least 48 continuous hours preceding the meeting except in an
19 emergency. Any item not included on the notice may be taken
20 up on an emergency basis by at least a majority plus one of
21 the members of the board. Such emergency action shall be
22 noticed and ratified at the next regular meeting of the board.
23 However, written notice of any meeting at which nonemergency
24 special assessments, or at which amendment to rules regarding
25 unit use, will be considered shall be mailed or delivered to
26 the unit owners and posted conspicuously on the condominium
27 property not less than 14 days prior to the meeting. Evidence
28 of compliance with this 14-day notice shall be made by an
29 affidavit executed by the person providing the notice and
30 filed among the official records of the association. Upon
31 notice to the unit owners, the board shall by duly adopted
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Amendment No.
1 rule designate a specific location on the condominium property
2 or association property upon which all notices of board
3 meetings shall be posted. If there is no condominium property
4 or association property upon which notices can be posted,
5 notices of board meetings shall be mailed or delivered at
6 least 14 days before the meeting to the owner of each unit.
7 Notice of any meeting in which regular assessments against
8 unit owners are to be considered for any reason shall
9 specifically contain a statement that assessments will be
10 considered and the nature of any such assessments. Meetings of
11 a committee to take final action on behalf of the board or
12 make recommendations to the board regarding the association
13 budget are subject to the provisions of this paragraph.
14 Meetings of a committee that does not take final action on
15 behalf of the board or make recommendations to the board
16 regarding the association budget are subject to the provisions
17 of this section, unless those meetings are exempted from this
18 section by the bylaws of the association. Notwithstanding any
19 other law, the requirement that board meetings and committee
20 meetings be open to the unit owners is inapplicable to
21 meetings between the board or a committee and the
22 association's attorney, with respect to proposed or pending
23 litigation, when the meeting is held for the purpose of
24 seeking or rendering legal advice.
25 (d) Unit owner meetings.--
26 1. There shall be an annual meeting of the unit
27 owners. Unless the bylaws provide otherwise, a vacancy on the
28 board of administration caused by the expiration of a
29 director's term shall be filled by electing a new board
30 member, and the election shall be by secret closed ballot;
31 however, if the number of vacancies equals or exceeds the
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Amendment No.
1 number of candidates there is only one candidate for election
2 to fill the vacancy, no election is required. If there is no
3 provision in the bylaws for terms of the members of the board
4 of administration, the terms of all members of the board of
5 administration shall expire upon the election of their
6 successors at the annual meeting. Any unit owner desiring to
7 be a candidate for board membership shall comply with
8 subparagraph 3. In order to be eligible for board membership a
9 person must meet the requirements set forth in the
10 declaration. A person who has been convicted of any felony by
11 any court of record in the United States and who has not had
12 his or her right to vote restored pursuant to law in the
13 jurisdiction of his or her residence is not eligible for board
14 membership. The validity of an action by the board is not
15 affected if it is later determined that a member of the board
16 is ineligible for board membership due to having been
17 convicted of a felony.
18 2. The bylaws shall provide the method of calling
19 meetings of unit owners, including annual meetings. Written
20 notice, which notice must include an agenda, shall be mailed
21 or delivered to each unit owner at least 14 days prior to the
22 annual meeting and shall be posted in a conspicuous place on
23 the condominium property at least 14 continuous days preceding
24 the annual meeting. Upon notice to the unit owners, the board
25 shall by duly adopted rule designate a specific location on
26 the condominium property or association property upon which
27 all notices of unit owner meetings shall be posted; however,
28 if there is no condominium property or association property
29 upon which notices can be posted, this requirement does not
30 apply. Unless a unit owner waives in writing the right to
31 receive notice of the annual meeting by mail, the notice of
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Amendment No.
1 the annual meeting shall be sent by mail to each unit owner.
2 Where a unit is owned by more than one person, the association
3 shall provide notice, for meetings and all other purposes, to
4 that one address which the developer initially identifies for
5 that purpose and thereafter as one or more of the owners of
6 the unit shall so advise the association in writing, or if no
7 address is given or the owners of the unit do not agree, to
8 the address provided on the deed of record. An officer of the
9 association, or the manager or other person providing notice
10 of the association meeting, shall provide an affidavit or
11 United States Postal Service certificate of mailing, to be
12 included in the official records of the association affirming
13 that the notice was mailed or hand delivered, in accordance
14 with this provision, to each unit owner at the address last
15 furnished to the association.
16 3. After January 1, 1992, The members of the board of
17 administration shall be elected by written ballot or voting
18 machine. Proxies shall in no event be used in electing the
19 board of administration, either in general elections or
20 elections to fill vacancies caused by recall, resignation, or
21 otherwise, unless otherwise provided in this chapter. Not less
22 than 60 days before a scheduled election, the association
23 shall mail or deliver, whether by separate association mailing
24 or included in another association mailing or delivery
25 including regularly published newsletters, to each unit owner
26 entitled to a vote, a first notice of the date of the
27 election. Any unit owner or other eligible person desiring to
28 be a candidate for the board of administration must give
29 written notice to the association not less than 40 days before
30 a scheduled election. Together with the written notice and
31 agenda as set forth in subparagraph 2., the association shall
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Bill No. CS/CS/HB 3321
Amendment No.
1 mail or deliver a second notice of the election to all unit
2 owners entitled to vote therein, together with a ballot which
3 shall list all candidates. Upon request of a candidate, the
4 association shall include an information sheet, no larger than
5 8 1/2 inches by 11 inches, which must be furnished by the
6 candidate not less than 35 days before the election, to be
7 included with the mailing of the ballot, with the costs of
8 mailing or delivery and copying to be borne by the
9 association. However, the association has no liability for the
10 contents of the information sheets prepared by the candidates.
11 In order to reduce costs, the association may print or
12 duplicate the information sheets on both sides of the paper.
13 The division shall by rule establish voting procedures
14 consistent with the provisions contained herein, including
15 rules providing for the secrecy of ballots. Elections shall
16 be decided by a plurality of those ballots cast. There shall
17 be no quorum requirement; however, at least 20 percent of the
18 eligible voters must cast a ballot in order to have a valid
19 election of members of the board of administration. No unit
20 owner shall permit any other person to vote his or her ballot,
21 and any such ballots improperly cast shall be deemed invalid.
22 A unit owner who needs assistance in casting the ballot for
23 the reasons stated in s. 101.051 may obtain assistance in
24 casting the ballot. Any unit owner violating this provision
25 may be fined by the association in accordance with s. 718.303.
26 The regular election shall occur on the date of the annual
27 meeting. The provisions of this subparagraph shall not apply
28 to timeshare condominium associations. Notwithstanding the
29 provisions of this subparagraph, an election and balloting are
30 not required unless more candidates file notices of intent to
31 run or are nominated than vacancies exist on the board.
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1 4. Any approval by unit owners called for by this
2 chapter or the applicable declaration or bylaws, including,
3 but not limited to, the approval requirement in s. 718.111(8),
4 shall be made at a duly noticed meeting of unit owners and
5 shall be subject to all requirements of this chapter or the
6 applicable condominium documents relating to unit owner
7 decisionmaking, except that unit owners may take action by
8 written agreement, without meetings, on matters for which
9 action by written agreement without meetings is expressly
10 allowed by the applicable bylaws or declaration or any statute
11 that which provides for such action.
12 5. Unit owners may waive notice of specific meetings
13 if allowed by the applicable bylaws or declaration or any
14 statute.
15 6. Unit owners shall have the right to participate in
16 meetings of unit owners with reference to all designated
17 agenda items. However, the association may adopt reasonable
18 rules governing the frequency, duration, and manner of unit
19 owner participation.
20 7. Any unit owner may tape record or videotape a
21 meeting of the unit owners subject to reasonable rules adopted
22 by the division.
23 8. Unless otherwise provided in the bylaws, any
24 vacancy occurring on the board before the expiration of a term
25 may be filled by the affirmative vote of the majority of the
26 remaining directors, even if the remaining directors
27 constitute less than a quorum, or by the sole remaining
28 director. In the alternative, a board may hold an election to
29 fill the vacancy, in which case the election procedures must
30 conform to the requirements of subparagraph 3. unless the
31 association has opted out of the statutory election process,
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Amendment No.
1 in which case the bylaws of the association control. Unless
2 otherwise provided in the bylaws, a board member appointed or
3 elected under this section shall fill the vacancy for the
4 unexpired term of the seat being filled. Filling vacancies
5 created by recall is governed by paragraph (j) and rules
6 adopted by the division.
7
8 Notwithstanding subparagraphs (b)2. and (d)3., an association
9 may, by the affirmative vote of a majority of the total voting
10 interests, provide for different voting and election
11 procedures in its bylaws, which vote may be by a proxy
12 specifically delineating the different voting and election
13 procedures. The different voting and election procedures may
14 provide for elections to be conducted by limited or general
15 proxy.
16 (e) Budget meeting.--The board of administration shall
17 mail or hand deliver to each unit owner, or mail to each unit
18 owner at the address last furnished to the association, a
19 meeting notice and copies of the proposed annual budget of
20 common expenses not less than 14 days prior to the meeting of
21 the unit owners or the board of administration at which the
22 budget will be considered. Evidence of compliance with this
23 14-day notice must be made by an affidavit executed by an
24 officer of the association or the manager or other person
25 providing notice of the meeting and filed among the official
26 records of the association. The meeting must be open to the
27 unit owners. If an adopted budget requires assessments
28 against the unit owners in any fiscal or calendar year which
29 exceed 115 percent of the assessments for the preceding year,
30 the board, upon written application of 10 percent of the
31 voting interests to the board, shall call a special meeting of
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Bill No. CS/CS/HB 3321
Amendment No.
1 the unit owners within 30 days upon not less than 10 days'
2 written notice to each unit owner. At the special meeting,
3 unit owners shall consider and enact a budget. Unless the
4 bylaws require a larger vote, the adoption of the budget
5 requires a vote of not less than a majority vote of all the
6 voting interests. The board of administration may propose a
7 budget to the unit owners at a meeting of members or in
8 writing, and if the budget or proposed budget is approved by
9 the unit owners at the meeting or by a majority of all the
10 voting interests in writing, the budget is adopted. If a
11 meeting of the unit owners has been called and a quorum is not
12 attained or a substitute budget is not adopted by the unit
13 owners, the budget adopted by the board of directors goes into
14 effect as scheduled. In determining whether assessments
15 exceed 115 percent of similar assessments in prior years, any
16 authorized provisions for reasonable reserves for repair or
17 replacement of the condominium property, anticipated expenses
18 by the condominium association which are not anticipated to be
19 incurred on a regular or annual basis, or assessments for
20 betterments to the condominium property must be excluded from
21 the computation. However, as long as the developer is in
22 control of the board of administration, the board may not
23 impose an assessment for any year greater than 115 percent of
24 the prior fiscal or calendar year's assessment without
25 approval of a majority of all the voting interests.
26 (f) Annual budget.--
27 1. The proposed annual budget of common expenses shall
28 be detailed and shall show the amounts budgeted by accounts
29 and expense classifications, including, if applicable, but not
30 limited to, those expenses listed in s. 718.504(20). In
31 addition, if the association maintains limited common elements
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1 with the cost to be shared only by those entitled to use the
2 limited common elements as provided for in s. 718.113(1), the
3 budget or a schedule attached thereto shall show amounts
4 budgeted therefor. If, after turnover of control of the
5 association to the unit owners, any of the expenses listed in
6 s. 718.504(20) are not applicable, they need not be listed.
7 2. In addition to annual operating expenses, the
8 budget shall include reserve accounts for capital expenditures
9 and deferred maintenance. These accounts shall include, but
10 are not limited to, roof replacement, building painting, and
11 pavement resurfacing, regardless of the amount of deferred
12 maintenance expense or replacement cost, and for any other
13 item for which the deferred maintenance expense or replacement
14 cost exceeds $10,000. The amount to be reserved shall be
15 computed by means of a formula which is based upon estimated
16 remaining useful life and estimated replacement cost or
17 deferred maintenance expense of each reserve item. The
18 association may adjust replacement reserve assessments
19 annually to take into account any changes in estimates or
20 extension of the useful life of a reserve item caused by
21 deferred maintenance. This subsection does not apply to
22 budgets in which the members of an association have, by a
23 majority vote at a duly called meeting of the association, and
24 voting determined for a fiscal year to provide no reserves or
25 reserves less adequate than required by this subsection.
26 However, prior to turnover of control of an association by a
27 developer to unit owners other than a developer pursuant to s.
28 718.301, the developer may vote to waive the reserves or
29 reduce the funding of reserves for the first 2 years of the
30 operation of the association, after which time reserves may
31 only be waived or reduced only upon the vote of a majority of
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Amendment No.
1 all nondeveloper voting interests voting in person or by
2 limited proxy at a duly called meeting of the association. If
3 a meeting of the unit owners has been called to determine to
4 provide no reserves or reserves less adequate than required,
5 and such result is not attained or a quorum is not attained,
6 the reserves as included in the budget shall go into effect.
7 3. Reserve funds and any interest accruing thereon
8 shall remain in the reserve account or accounts, and shall be
9 used only for authorized reserve expenditures unless their use
10 for other purposes is approved in advance by a vote of the
11 majority vote of the voting interests voting in person or by
12 limited proxy at a duly called meeting of the association.
13 Prior to turnover of control of an association by a developer
14 to unit owners other than the developer pursuant to s.
15 718.301, the developer-controlled association shall not vote
16 to use reserves for purposes other than that for which they
17 were intended without the approval of a majority of all
18 nondeveloper voting interests, voting in person or by limited
19 proxy at a duly called meeting of the association.
20 (g) Assessments.--The manner of collecting from the
21 unit owners their shares of the common expenses shall be
22 stated in the bylaws. Assessments shall be made against units
23 not less frequently than quarterly in an amount which is not
24 less than that required to provide funds in advance for
25 payment of all of the anticipated current operating expenses
26 and for all of the unpaid operating expenses previously
27 incurred. Nothing in this paragraph shall preclude the right
28 of an association to accelerate assessments of an owner
29 delinquent in payment of common expenses. Accelerated
30 assessments shall be due and payable on the date the claim of
31 lien is filed. Such accelerated assessments shall include the
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Bill No. CS/CS/HB 3321
Amendment No.
1 amounts due for the remainder of the budget year in which the
2 claim of lien was filed.
3 (h) Amendment of bylaws.--
4 1. The method by which the bylaws may be amended
5 consistent with the provisions of this chapter shall be
6 stated. If the bylaws fail to provide a method of amendment,
7 the bylaws may be amended if the amendment is approved by the
8 owners of not less than two-thirds of the voting interests.
9 2. No bylaw shall be revised or amended by reference
10 to its title or number only. Proposals to amend existing
11 bylaws shall contain the full text of the bylaws to be
12 amended; new words shall be inserted in the text underlined,
13 and words to be deleted shall be lined through with hyphens.
14 However, if the proposed change is so extensive that this
15 procedure would hinder, rather than assist, the understanding
16 of the proposed amendment, it is not necessary to use
17 underlining and hyphens as indicators of words added or
18 deleted, but, instead, a notation must be inserted immediately
19 preceding the proposed amendment in substantially the
20 following language: "Substantial rewording of bylaw. See
21 bylaw .... for present text."
22 3. Nonmaterial errors or omissions in the bylaw
23 process will not invalidate an otherwise properly promulgated
24 amendment.
25 (i) Transfer fees.--No charge shall be made by the
26 association or any body thereof in connection with the sale,
27 mortgage, lease, sublease, or other transfer of a unit unless
28 the association is required to approve such transfer and a fee
29 for such approval is provided for in the declaration,
30 articles, or bylaws. Any such fee may be preset, but in no
31 event may such fee exceed $100 per applicant other than
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Amendment No.
1 husband/wife or parent/dependent child, which are considered
2 one applicant. However, if the lease or sublease is a renewal
3 of a lease or sublease with the same lessee or sublessee, no
4 charge shall be made. The foregoing notwithstanding, an
5 association may, if the authority to do so appears in the
6 declaration or bylaws, require that a prospective lessee place
7 a security deposit, in an amount not to exceed the equivalent
8 of 1 month's rent, into an escrow account maintained by the
9 association. The security deposit shall protect against
10 damages to the common elements or association property.
11 Payment of interest, claims against the deposit, refunds, and
12 disputes under this paragraph shall be handled in the same
13 fashion as provided in part II of chapter 83.
14 (j) Fidelity bonds.--The association shall obtain and
15 maintain adequate fidelity bonding of all persons who control
16 or disburse funds of the association. As used in this
17 section, the term "persons who control or disburse funds of
18 the association" means those individuals authorized to sign
19 checks, and the president, secretary, and treasurer of the
20 association. If an association's annual gross receipts do not
21 exceed $100,000, the bond shall be in the principal sum of not
22 less than $10,000 for each such person. If an association's
23 annual gross receipts exceed $100,000, but do not exceed
24 $300,000, the bond shall be in the principal sum of $30,000
25 for each such person. If an association's annual gross
26 receipts exceed $300,000, the bond shall be in the principal
27 sum of not less than $50,000 for each such person. The
28 association shall bear the cost of bonding.
29 (j)(k) Recall of board members.--Subject to the
30 provisions of s. 718.301, any member of the board of
31 administration may be recalled and removed from office with or
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Amendment No.
1 without cause by the vote or agreement in writing by a
2 majority of all the voting interests. A special meeting of the
3 unit owners to recall a member or members of the board of
4 administration may be called by 10 percent of the voting
5 interests giving notice of the meeting as required for a
6 meeting of unit owners, and the notice shall state the purpose
7 of the meeting.
8 1. If the recall is approved by a majority of all
9 voting interests by a vote at a meeting, the recall will be
10 effective as provided herein. The board shall duly notice and
11 hold a board meeting within 5 full business days of the
12 adjournment of the unit owner meeting to recall one or more
13 board members. At the meeting, the board shall either certify
14 the recall, in which case such member or members shall be
15 recalled effective immediately and shall turn over to the
16 board within 5 full business days any and all records and
17 property of the association in their possession, or shall
18 proceed as set forth in subparagraph 3.
19 2. If the proposed recall is by an agreement in
20 writing by a majority of all voting interests, the agreement
21 in writing or a copy thereof shall be served on the
22 association by certified mail or by personal service in the
23 manner authorized by chapter 48 and the Florida Rules of Civil
24 Procedure. The board of administration shall duly notice and
25 hold a meeting of the board within 5 full business days after
26 receipt of the agreement in writing. At the meeting, the board
27 shall either certify the written agreement to recall a member
28 or members of the board, in which case such member or members
29 shall be recalled effective immediately and shall turn over to
30 the board within 5 full business days any and all records and
31 property of the association in their possession, or proceed as
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Amendment No.
1 described in subparagraph 3.
2 3. If the board determines not to certify the written
3 agreement to recall a member or members of the board, or does
4 not certify the recall by a vote at a meeting, the board
5 shall, within 5 full business days after the meeting, file
6 with the division a petition for arbitration pursuant to the
7 procedures in s. 718.1255. For the purposes of this section,
8 the unit owners who voted at the meeting or who executed the
9 agreement in writing shall constitute one party under the
10 petition for arbitration. If the arbitrator certifies the
11 recall as to any member or members of the board, the recall
12 will be effective upon mailing of the final order of
13 arbitration to the association. If the association fails to
14 comply with the order of the arbitrator, the division may take
15 action pursuant to s. 718.501. Any member or members so
16 recalled shall deliver to the board any and all records of the
17 association in their possession within 5 full business days of
18 the effective date of the recall.
19 4. If the board fails to duly notice and hold a board
20 meeting within 5 full business days of service of an agreement
21 in writing or within 5 full business days of the adjournment
22 of the unit owner recall meeting, the recall shall be deemed
23 effective and the board members so recalled shall immediately
24 turn over to the board any and all records and property of the
25 association.
26 5. If a vacancy occurs on the board as a result of a
27 recall and less than a majority of the board members are
28 removed, the vacancy may be filled by the affirmative vote of
29 a majority of the remaining directors, notwithstanding any
30 provision to the contrary contained in this subsection. If
31 vacancies occur on the board as a result of a recall and a
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Amendment No.
1 majority or more of the board members are removed, the
2 vacancies shall be filled in accordance with procedural rules
3 to be adopted by the division, which rules need not be
4 consistent with this subsection. The rules must provide
5 procedures governing the conduct of the recall election as
6 well as the operation of the association during the period
7 after a recall but prior to the recall election.
8 (k)(l) Arbitration.--There shall be a provision for
9 mandatory nonbinding arbitration as provided for in s.
10 718.1255.
11 (l)(m) Certificate of compliance.--There shall be a
12 provision that a certificate of compliance from a licensed
13 electrical contractor or electrician may be accepted by the
14 association's board as evidence of compliance of the
15 condominium units to the applicable fire and life safety code.
16 (m)(n) Common elements; limited power to convey.--
17 1. With respect to condominiums created on or after
18 October 1, 1994, the bylaws shall include a provision granting
19 the association a limited power to convey a portion of the
20 common elements to a condemning authority for the purpose of
21 providing utility easements, right-of-way expansion, or other
22 public purposes, whether negotiated or as a result of eminent
23 domain proceedings.
24 2. In any case where the bylaws are silent as to the
25 association's power to convey common elements as described in
26 subparagraph 1., the bylaws shall be deemed to include the
27 provision described in subparagraph 1.
28 Section 4. Paragraph (b) of subsection (1) of section
29 718.115, Florida Statutes, is amended to read:
30 718.115 Common expenses and common surplus.--
31 (1)
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1 (b) If so provided in the declaration, the cost of a
2 master antenna television system or duly franchised cable
3 television service obtained pursuant to a bulk contract shall
4 be deemed a common expense. If the declaration does not
5 provide for the cost of a master antenna television system or
6 duly franchised cable television service obtained under a bulk
7 contract as a common expense, the board of administration may
8 enter into such a contract and the cost of the service will be
9 a common expense but allocated on a per-unit basis rather than
10 a percentage basis if the declaration provides for other than
11 an equal sharing of common expenses and any contract entered
12 into before July 1, 1998, in which the cost of the service is
13 not equally divided among all unit owners, may be changed by
14 vote of a majority of the voting interests present at a
15 regular or special meeting of the association, to allocate the
16 cost equally among all units., and if not, such cost shall be
17 considered common expense if it is designated as such in a
18 written contract between the board of administration and the
19 company providing the master television antenna system or the
20 cable television service. The contract shall be for a term of
21 not less than 2 years.
22 1. Any contract made by the board after the effective
23 date hereof for a community antenna system or duly franchised
24 cable television service may be canceled by a majority of the
25 voting interests present at the next regular or special
26 meeting of the association. Any member may make a motion to
27 cancel said contract, but if no motion is made or if such
28 motion fails to obtain the required majority at the next
29 regular or special meeting, whichever is sooner, following the
30 making of the contract, then such contract shall be deemed
31 ratified for the term therein expressed.
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Amendment No.
1 2. Any such contract shall provide, and shall be
2 deemed to provide if not expressly set forth, that any hearing
3 impaired or legally blind unit owner who does not occupy the
4 unit with a non-hearing-impaired nonhearing impaired or
5 sighted person may discontinue the service without incurring
6 disconnect fees, penalties, or subsequent service charges, and
7 as to such units, the owners shall not be required to pay any
8 common expenses charge related to such service. If less than
9 all members of an association share the expenses of cable
10 television, the expense shall be shared equally by all
11 participating unit owners. The association may use the
12 provisions of s. 718.116 to enforce payment of the shares of
13 such costs by the unit owners receiving cable television.
14 Section 5. Subsection (2) of section 718.503, Florida
15 Statutes, is amended to read:
16 718.503 Developer disclosure prior to sale;
17 nondeveloper unit owner disclosure prior to sale;
18 voidability.--
19 (2) NONDEVELOPER DISCLOSURE.--
20 (a) Each unit owner who is not a developer as defined
21 by this chapter shall comply with the provisions of this
22 subsection prior to the sale of his or her unit. Each
23 prospective purchaser who has entered into a contract for the
24 purchase of a condominium unit is entitled, at the seller's
25 expense, to a current copy of the declaration of condominium,
26 articles of incorporation of the association, bylaws, and
27 rules of the association, as well as a copy of the question
28 and answer sheet provided for by s. 718.504 and a copy of the
29 financial information required by s. 718.111.
30 (b) If a person licensed under part I of chapter 475
31 provides to or otherwise obtains for a prospective purchaser
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1 the documents described in this subsection, the person is not
2 liable for any error or inaccuracy contained in the documents.
3 (c) Each contract entered into after July 1, 1992, for
4 the resale of a residential unit shall contain in conspicuous
5 type either:
6 1. A clause which states: THE BUYER HEREBY
7 ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF
8 THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF
9 THE ASSOCIATION, BYLAWS, RULES OF THE ASSOCIATION, A COPY OF
10 THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND THE
11 QUESTION AND ANSWER SHEET MORE THAN 3 DAYS, EXCLUDING
12 SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
13 THIS CONTRACT; or
14 2. A clause which states: THIS AGREEMENT IS VOIDABLE
15 BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION
16 TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND
17 LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT
18 BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE
19 DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS,
20 AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
21 YEAR-END FINANCIAL INFORMATION AND QUESTION AND ANSWER SHEET
22 IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE
23 VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND
24 THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS,
25 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
26 BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
27 BYLAWS, RULES, AND QUESTION AND ANSWER SHEET IF REQUESTED IN
28 WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE
29 AT CLOSING.
30
31 A contract that does not conform to the requirements of this
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1 paragraph is voidable at the option of the purchaser prior to
2 closing.
3 Section 6. Section 718.504, Florida Statutes, is
4 amended to read:
5 718.504 Prospectus or offering circular.--Every
6 developer of a residential condominium which contains more
7 than 20 residential units, or which is part of a group of
8 residential condominiums which will be served by property to
9 be used in common by unit owners of more than 20 residential
10 units, shall prepare a prospectus or offering circular and
11 file it with the Division of Florida Land Sales, Condominiums,
12 and Mobile Homes prior to entering into an enforceable
13 contract of purchase and sale of any unit or lease of a unit
14 for more than 5 years and shall furnish a copy of the
15 prospectus or offering circular to each buyer. In addition to
16 the prospectus or offering circular, each buyer shall be
17 furnished a separate page entitled "Frequently Asked Questions
18 and Answers," which shall be in accordance with a format
19 approved by the division and a copy of the financial
20 information required by s. 718.111. This page shall, in
21 readable language, inform prospective purchasers regarding
22 their voting rights and unit use restrictions, including
23 restrictions on the leasing of a unit; shall indicate whether
24 and in what amount the unit owners or the association is
25 obligated to pay rent or land use fees for recreational or
26 other commonly used facilities; shall contain a statement
27 identifying that amount of assessment which, pursuant to the
28 budget, would be levied upon each unit type, exclusive of any
29 special assessments, and which shall further identify the
30 basis upon which assessments are levied, whether monthly,
31 quarterly, or otherwise; shall state and identify any court
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1 cases in which the association is currently a party of record
2 in which the association may face liability in excess of
3 $100,000; and which shall further state whether membership in
4 a recreational facilities association is mandatory, and if so,
5 shall identify the fees currently charged per unit type. The
6 division shall by rule require such other disclosure as in its
7 judgment will assist prospective purchasers. The prospectus or
8 offering circular may include more than one condominium,
9 although not all such units are being offered for sale as of
10 the date of the prospectus or offering circular. The
11 prospectus or offering circular must contain the following
12 information:
13 (1) The front cover or the first page must contain
14 only:
15 (a) The name of the condominium.
16 (b) The following statements in conspicuous type:
17 1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS
18 IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM
19 UNIT.
20 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
21 NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL
22 REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND
23 SALES MATERIALS.
24 3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS
25 CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER
26 TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR
27 CORRECT REPRESENTATIONS.
28 (2) Summary: The next page must contain all
29 statements required to be in conspicuous type in the
30 prospectus or offering circular.
31 (3) A separate index of the contents and exhibits of
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1 the prospectus.
2 (4) Beginning on the first page of the text (not
3 including the summary and index), a description of the
4 condominium, including, but not limited to, the following
5 information:
6 (a) Its name and location.
7 (b) A description of the condominium property,
8 including, without limitation:
9 1. The number of buildings, the number of units in
10 each building, the number of bathrooms and bedrooms in each
11 unit, and the total number of units, if the condominium is not
12 a phase condominium, or the maximum number of buildings that
13 may be contained within the condominium, the minimum and
14 maximum numbers of units in each building, the minimum and
15 maximum numbers of bathrooms and bedrooms that may be
16 contained in each unit, and the maximum number of units that
17 may be contained within the condominium, if the condominium is
18 a phase condominium.
19 2. The page in the condominium documents where a copy
20 of the plot plan and survey of the condominium is located.
21 3. The estimated latest date of completion of
22 constructing, finishing, and equipping. In lieu of a date,
23 the description shall include a statement that the estimated
24 date of completion of the condominium is in the purchase
25 agreement and a reference to the article or paragraph
26 containing that information.
27 (c) The maximum number of units that will use
28 facilities in common with the condominium. If the maximum
29 number of units will vary, a description of the basis for
30 variation and the minimum amount of dollars per unit to be
31 spent for additional recreational facilities or enlargement of
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Amendment No.
1 such facilities. If the addition or enlargement of facilities
2 will result in a material increase of a unit owner's
3 maintenance expense or rental expense, if any, the maximum
4 increase and limitations thereon shall be stated.
5 (5)(a) A statement in conspicuous type describing
6 whether the condominium is created and being sold as fee
7 simple interests or as leasehold interests. If the condominium
8 is created or being sold on a leasehold, the location of the
9 lease in the disclosure materials shall be stated.
10 (b) If timeshare estates are or may be created with
11 respect to any unit in the condominium, a statement in
12 conspicuous type stating that timeshare estates are created
13 and being sold in units in the condominium.
14 (6) A description of the recreational and other
15 commonly used facilities that will be used only by unit owners
16 of the condominium, including, but not limited to, the
17 following:
18 (a) Each room and its intended purposes, location,
19 approximate floor area, and capacity in numbers of people.
20 (b) Each swimming pool, as to its general location,
21 approximate size and depths, approximate deck size and
22 capacity, and whether heated.
23 (c) Additional facilities, as to the number of each
24 facility, its approximate location, approximate size, and
25 approximate capacity.
26 (d) A general description of the items of personal
27 property and the approximate number of each item of personal
28 property that the developer is committing to furnish for each
29 room or other facility or, in the alternative, a
30 representation as to the minimum amount of expenditure that
31 will be made to purchase the personal property for the
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Amendment No.
1 facility.
2 (e) The estimated date when each room or other
3 facility will be available for use by the unit owners.
4 (f)1. An identification of each room or other facility
5 to be used by unit owners that will not be owned by the unit
6 owners or the association;
7 2. A reference to the location in the disclosure
8 materials of the lease or other agreements providing for the
9 use of those facilities; and
10 3. A description of the terms of the lease or other
11 agreements, including the length of the term; the rent
12 payable, directly or indirectly, by each unit owner, and the
13 total rent payable to the lessor, stated in monthly and annual
14 amounts for the entire term of the lease; and a description of
15 any option to purchase the property leased under any such
16 lease, including the time the option may be exercised, the
17 purchase price or how it is to be determined, the manner of
18 payment, and whether the option may be exercised for a unit
19 owner's share or only as to the entire leased property.
20 (g) A statement as to whether the developer may
21 provide additional facilities not described above; their
22 general locations and types; improvements or changes that may
23 be made; the approximate dollar amount to be expended; and the
24 maximum additional common expense or cost to the individual
25 unit owners that may be charged during the first annual period
26 of operation of the modified or added facilities.
27
28 Descriptions as to locations, areas, capacities, numbers,
29 volumes, or sizes may be stated as approximations or minimums.
30 (7) A description of the recreational and other
31 facilities that will be used in common with other
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Amendment No.
1 condominiums, community associations, or planned developments
2 which require the payment of the maintenance and expenses of
3 such facilities, either directly or indirectly, by the unit
4 owners. The description shall include, but not be limited to,
5 the following:
6 (a) Each building and facility committed to be built.
7 (b) Facilities not committed to be built except under
8 certain conditions, and a statement of those conditions or
9 contingencies.
10 (c) As to each facility committed to be built, or
11 which will be committed to be built upon the happening of one
12 of the conditions in paragraph (b), a statement of whether it
13 will be owned by the unit owners having the use thereof or by
14 an association or other entity which will be controlled by
15 them, or others, and the location in the exhibits of the lease
16 or other document providing for use of those facilities.
17 (d) The year in which each facility will be available
18 for use by the unit owners or, in the alternative, the maximum
19 number of unit owners in the project at the time each of all
20 of the facilities is committed to be completed.
21 (e) A general description of the items of personal
22 property, and the approximate number of each item of personal
23 property, that the developer is committing to furnish for each
24 room or other facility or, in the alternative, a
25 representation as to the minimum amount of expenditure that
26 will be made to purchase the personal property for the
27 facility.
28 (f) If there are leases, a description thereof,
29 including the length of the term, the rent payable, and a
30 description of any option to purchase.
31
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Amendment No.
1 Descriptions shall include location, areas, capacities,
2 numbers, volumes, or sizes and may be stated as approximations
3 or minimums.
4 (8) Recreation lease or associated club membership:
5 (a) If any recreational facilities or other facilities
6 offered by the developer and available to, or to be used by,
7 unit owners are to be leased or have club membership
8 associated, the following statement in conspicuous type shall
9 be included: THERE IS A RECREATIONAL FACILITIES LEASE
10 ASSOCIATED WITH THIS CONDOMINIUM; or, THERE IS A CLUB
11 MEMBERSHIP ASSOCIATED WITH THIS CONDOMINIUM. There shall be a
12 reference to the location in the disclosure materials where
13 the recreation lease or club membership is described in
14 detail.
15 (b) If it is mandatory that unit owners pay a fee,
16 rent, dues, or other charges under a recreational facilities
17 lease or club membership for the use of facilities, there
18 shall be in conspicuous type the applicable statement:
19 1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
20 MANDATORY FOR UNIT OWNERS; or
21 2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF
22 OWNERSHIP, TO BE LESSEES UNDER THE RECREATIONAL FACILITIES
23 LEASE; or
24 3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
25 COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
26 REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
27 LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
28 4. A similar statement of the nature of the
29 organization or the manner in which the use rights are
30 created, and that unit owners are required to pay.
31
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Amendment No.
1 Immediately following the applicable statement, the location
2 in the disclosure materials where the development is described
3 in detail shall be stated.
4 (c) If the developer, or any other person other than
5 the unit owners and other persons having use rights in the
6 facilities, reserves, or is entitled to receive, any rent,
7 fee, or other payment for the use of the facilities, then
8 there shall be the following statement in conspicuous type:
9 THE UNIT OWNERS OR THE ASSOCIATION(S) MUST PAY RENT OR LAND
10 USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES.
11 Immediately following this statement, the location in the
12 disclosure materials where the rent or land use fees are
13 described in detail shall be stated.
14 (d) If, in any recreation format, whether leasehold,
15 club, or other, any person other than the association has the
16 right to a lien on the units to secure the payment of
17 assessments, rent, or other exactions, there shall appear a
18 statement in conspicuous type in substantially the following
19 form:
20 1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
21 SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
22 RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
23 PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
24 2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
25 SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING
26 DUE FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE
27 RECREATIONAL OR COMMONLY USED FACILITIES. THE UNIT OWNER'S
28 FAILURE TO MAKE THESE PAYMENTS MAY RESULT IN FORECLOSURE OF
29 THE LIEN.
30
31 Immediately following the applicable statement, the location
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Amendment No.
1 in the disclosure materials where the lien or lien right is
2 described in detail shall be stated.
3 (9) If the developer or any other person has the right
4 to increase or add to the recreational facilities at any time
5 after the establishment of the condominium whose unit owners
6 have use rights therein, without the consent of the unit
7 owners or associations being required, there shall appear a
8 statement in conspicuous type in substantially the following
9 form: RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED
10 WITHOUT CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S).
11 Immediately following this statement, the location in the
12 disclosure materials where such reserved rights are described
13 shall be stated.
14 (10) A statement of whether the developer's plan
15 includes a program of leasing units rather than selling them,
16 or leasing units and selling them subject to such leases. If
17 so, there shall be a description of the plan, including the
18 number and identification of the units and the provisions and
19 term of the proposed leases, and a statement in boldfaced type
20 that: THE UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
21 (11) The arrangements for management of the
22 association and maintenance and operation of the condominium
23 property and of other property that will serve the unit owners
24 of the condominium property, and a description of the
25 management contract and all other contracts for these purposes
26 having a term in excess of 1 year, including the following:
27 (a) The names of contracting parties.
28 (b) The term of the contract.
29 (c) The nature of the services included.
30 (d) The compensation, stated on a monthly and annual
31 basis, and provisions for increases in the compensation.
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Amendment No.
1 (e) A reference to the volumes and pages of the
2 condominium documents and of the exhibits containing copies of
3 such contracts.
4
5 Copies of all described contracts shall be attached as
6 exhibits. If there is a contract for the management of the
7 condominium property, then a statement in conspicuous type in
8 substantially the following form shall appear, identifying the
9 proposed or existing contract manager: THERE IS (IS TO BE) A
10 CONTRACT FOR THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH
11 (NAME OF THE CONTRACT MANAGER). Immediately following this
12 statement, the location in the disclosure materials of the
13 contract for management of the condominium property shall be
14 stated.
15 (12) If the developer or any other person or persons
16 other than the unit owners has the right to retain control of
17 the board of administration of the association for a period of
18 time which can exceed 1 year after the closing of the sale of
19 a majority of the units in that condominium to persons other
20 than successors or alternate developers, then a statement in
21 conspicuous type in substantially the following form shall be
22 included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
23 RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE
24 UNITS HAVE BEEN SOLD. Immediately following this statement,
25 the location in the disclosure materials where this right to
26 control is described in detail shall be stated.
27 (13) If there are any restrictions upon the sale,
28 transfer, conveyance, or leasing of a unit, then a statement
29 in conspicuous type in substantially the following form shall
30 be included: THE SALE, LEASE, OR TRANSFER OF UNITS IS
31 RESTRICTED OR CONTROLLED. Immediately following this
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Amendment No.
1 statement, the location in the disclosure materials where the
2 restriction, limitation, or control on the sale, lease, or
3 transfer of units is described in detail shall be stated.
4 (14) If the condominium is part of a phase project,
5 the following information shall be stated:
6 (a) A statement in conspicuous type in substantially
7 the following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL
8 LAND AND UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately
9 following this statement, the location in the disclosure
10 materials where the phasing is described shall be stated.
11 (b) A summary of the provisions of the declaration
12 which provide for the phasing.
13 (c) A statement as to whether or not residential
14 buildings and units which are added to the condominium may be
15 substantially different from the residential buildings and
16 units originally in the condominium. If the added residential
17 buildings and units may be substantially different, there
18 shall be a general description of the extent to which such
19 added residential buildings and units may differ, and a
20 statement in conspicuous type in substantially the following
21 form shall be included: BUILDINGS AND UNITS WHICH ARE ADDED TO
22 THE CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER
23 BUILDINGS AND UNITS IN THE CONDOMINIUM. Immediately following
24 this statement, the location in the disclosure materials where
25 the extent to which added residential buildings and units may
26 substantially differ is described shall be stated.
27 (d) A statement of the maximum number of buildings
28 containing units, the maximum and minimum numbers of units in
29 each building, the maximum number of units, and the minimum
30 and maximum square footage of the units that may be contained
31 within each parcel of land which may be added to the
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Amendment No.
1 condominium.
2 (15) If the condominium is created by conversion of
3 existing improvements, the following information shall be
4 stated:
5 (a) The information required by s. 718.616.
6 (b) A caveat that there are no express warranties
7 unless they are stated in writing by the developer.
8 (16) A summary of the restrictions, if any, to be
9 imposed on units concerning the use of any of the condominium
10 property, including statements as to whether there are
11 restrictions upon children and pets, and reference to the
12 volumes and pages of the condominium documents where such
13 restrictions are found, or if such restrictions are contained
14 elsewhere, then a copy of the documents containing the
15 restrictions shall be attached as an exhibit.
16 (17) If there is any land that is offered by the
17 developer for use by the unit owners and that is neither owned
18 by them nor leased to them, the association, or any entity
19 controlled by unit owners and other persons having the use
20 rights to such land, a statement shall be made as to how such
21 land will serve the condominium. If any part of such land
22 will serve the condominium, the statement shall describe the
23 land and the nature and term of service, and the declaration
24 or other instrument creating such servitude shall be included
25 as an exhibit.
26 (18) The manner in which utility and other services,
27 including, but not limited to, sewage and waste disposal,
28 water supply, and storm drainage, will be provided and the
29 person or entity furnishing them.
30 (19) An explanation of the manner in which the
31 apportionment of common expenses and ownership of the common
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Amendment No.
1 elements has been determined.
2 (20) An estimated operating budget for the condominium
3 and the association, and a schedule of the unit owner's
4 expenses shall be attached as an exhibit and shall contain the
5 following information:
6 (a) The estimated monthly and annual expenses of the
7 condominium and the association that are collected from unit
8 owners by assessments.
9 (b) The estimated monthly and annual expenses of each
10 unit owner for a unit, other than common expenses paid by all
11 unit owners, payable by the unit owner to persons or entities
12 other than the association, as well as to the association,
13 including fees assessed pursuant to s. 718.113(1) for
14 maintenance of limited common elements where such costs are
15 shared only by those entitled to use the limited common
16 element, and the total estimated monthly and annual expense.
17 There may be excluded from this estimate expenses which are
18 not provided for or contemplated by the condominium documents,
19 including, but not limited to, the costs of private telephone;
20 maintenance of the interior of condominium units, which is not
21 the obligation of the association; maid or janitorial services
22 privately contracted for by the unit owners; utility bills
23 billed directly to each unit owner for utility services to his
24 or her unit; insurance premiums other than those incurred for
25 policies obtained by the condominium; and similar personal
26 expenses of the unit owner. A unit owner's estimated payments
27 for assessments shall also be stated in the estimated amounts
28 for the times when they will be due.
29 (c) The estimated items of expenses of the condominium
30 and the association, except as excluded under paragraph (b),
31 including, but not limited to, the following items, which
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Amendment No.
1 shall be stated either as an association expense collectible
2 by assessments or as unit owners' expenses payable to persons
3 other than the association:
4 1. Expenses for the association and condominium:
5 a. Administration of the association.
6 b. Management fees.
7 c. Maintenance.
8 d. Rent for recreational and other commonly used
9 facilities.
10 e. Taxes upon association property.
11 f. Taxes upon leased areas.
12 g. Insurance.
13 h. Security provisions.
14 i. Other expenses.
15 j. Operating capital.
16 k. Reserves.
17 l. Fees payable to the division.
18 2. Expenses for a unit owner:
19 a. Rent for the unit, if subject to a lease.
20 b. Rent payable by the unit owner directly to the
21 lessor or agent under any recreational lease or lease for the
22 use of commonly used facilities, which use and payment is a
23 mandatory condition of ownership and is not included in the
24 common expense or assessments for common maintenance paid by
25 the unit owners to the association.
26 (d) The estimated amounts shall be stated for a period
27 of at least 12 months and may distinguish between the period
28 prior to the time unit owners other than the developer elect a
29 majority of the board of administration and the period after
30 that date.
31 (21) A schedule of estimated closing expenses to be
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Amendment No.
1 paid by a buyer or lessee of a unit and a statement of whether
2 title opinion or title insurance policy is available to the
3 buyer and, if so, at whose expense.
4 (22) The identity of the developer and the chief
5 operating officer or principal directing the creation and sale
6 of the condominium and a statement of its and his or her
7 experience in this field.
8 (23) Copies of the following, to the extent they are
9 applicable, shall be included as exhibits:
10 (a) The declaration of condominium, or the proposed
11 declaration if the declaration has not been recorded.
12 (b) The articles of incorporation creating the
13 association.
14 (c) The bylaws of the association.
15 (d) The ground lease or other underlying lease of the
16 condominium.
17 (e) The management agreement and all maintenance and
18 other contracts for management of the association and
19 operation of the condominium and facilities used by the unit
20 owners having a service term in excess of 1 year.
21 (f) The estimated operating budget for the condominium
22 and the required schedule of unit owners' expenses.
23 (g) A copy of the floor plan of the unit and the plot
24 plan showing the location of the residential buildings and the
25 recreation and other common areas.
26 (h) The lease of recreational and other facilities
27 that will be used only by unit owners of the subject
28 condominium.
29 (i) The lease of facilities used by owners and others.
30 (j) The form of unit lease, if the offer is of a
31 leasehold.
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Amendment No.
1 (k) A declaration of servitude of properties serving
2 the condominium but not owned by unit owners or leased to them
3 or the association.
4 (l) The statement of condition of the existing
5 building or buildings, if the offering is of units in an
6 operation being converted to condominium ownership.
7 (m) The statement of inspection for termite damage and
8 treatment of the existing improvements, if the condominium is
9 a conversion.
10 (n) The form of agreement for sale or lease of units.
11 (o) A copy of the agreement for escrow of payments
12 made to the developer prior to closing.
13 (p) A copy of the documents containing any
14 restrictions on use of the property required by subsection
15 (16).
16 (24) Any prospectus or offering circular complying,
17 prior to the effective date of this act, with the provisions
18 of former ss. 711.69 and 711.802 may continue to be used
19 without amendment or may be amended to comply with the
20 provisions of this chapter.
21 (25) A brief narrative description of the location and
22 effect of all existing and intended easements located or to be
23 located on the condominium property other than those described
24 in the declaration.
25 (26) If the developer is required by state or local
26 authorities to obtain acceptance or approval of any dock or
27 marina facilities intended to serve the condominium, a copy of
28 any such acceptance or approval acquired by the time of filing
29 with the division under s. 718.502(1) or a statement that such
30 acceptance or approval has not been acquired or received.
31 (27) Evidence demonstrating that the developer has an
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Amendment No.
1 ownership, leasehold, or contractual interest in the land upon
2 which the condominium is to be developed.
3 Section 7. Paragraph (a) of subsection (9) of section
4 718.116, Florida Statutes, is amended to read:
5 718.116 Assessments; liability; lien and priority;
6 interest; collection.--
7 (9)(a) No unit owner may be excused from the payment
8 of his or her share of the common expense of a condominium
9 unless all unit owners are likewise proportionately excused
10 from payment, except as provided in subsection (1) and in the
11 following cases:
12 1. If the declaration so provides, a developer or
13 other person who owns condominium units offered for sale may
14 be excused from the payment of the share of the common
15 expenses and assessments related to those units for a stated
16 period of time subsequent to the recording of the declaration
17 of condominium. The period must terminate no later than the
18 first day of the fourth calendar month following the month in
19 which the closing of the purchase and sale of the first
20 condominium unit occurs. However, the developer must pay
21 those the portion of common expenses incurred during that
22 period which exceed the amount assessed against other unit
23 owners. Notwithstanding this limitation, if a
24 developer-controlled association has maintained all insurance
25 coverages required by s. 718.111(11)(a), the common expenses
26 incurred during the foregoing period resulting from a natural
27 disaster or an act of God, which are not covered by insurance
28 proceeds from the insurance maintained by the association, may
29 be assigned against all unit owners owning units on the date
30 of such natural disaster or act of God, and their successors
31 and assigns, including the developer with respect to units
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Amendment No.
1 owned by the developer. In the event of such an assessment,
2 all units shall be assessed in accordance with their ownership
3 interest in the common elements as required by s. 718.115(2).
4 2. A developer or other person who owns condominium
5 units or who has an obligation to pay condominium expenses may
6 be excused from the payment of his or her share of the common
7 expense which would have been assessed against those units
8 during the period of time that he or she has guaranteed to
9 each purchaser in the purchase contract, declaration, or
10 prospectus, or by agreement between the developer and a
11 majority of the unit owners other than the developer, that the
12 assessment for common expenses of the condominium imposed upon
13 the unit owners would not increase over a stated dollar amount
14 and has obligated himself or herself to pay any amount of
15 common expenses incurred during that period and not produced
16 by the assessments at the guaranteed level receivable from
17 other unit owners. Notwithstanding this limitation, if a
18 developer-controlled association has maintained all insurance
19 coverages required by s. 718.111(11)(a), the common expenses
20 incurred during the guarantee period resulting from a natural
21 disaster or an act of God, which are not covered by insurance
22 proceeds from the insurance maintained by the association, may
23 be assessed against all unit owners owning units on the date
24 of such natural disaster or act of God, and their successors
25 and assigns, including the developer with respect to units
26 owned by the developer. In the event of such an assessment,
27 all units shall be assessed in accordance with their ownership
28 interest in the common elements as required by s. 718.115(2).
29 The guarantee may provide that after an initial stated period,
30 the developer has an option or options to extend the guarantee
31 for one or more additional stated periods.
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Bill No. CS/CS/HB 3321
Amendment No.
1 Section 8. Section 719.103, Florida Statutes, is
2 amended to read:
3 719.103 Definitions.--As used in this chapter:
4 (1) "Assessment" means a share of the funds required
5 for the payment of common expenses, which from time to time is
6 assessed against the unit owner.
7 (2) "Association" means the corporation for profit or
8 not for profit that owns the record interest in the
9 cooperative property or a leasehold of the property of a
10 cooperative and that is responsible for the operation of the
11 cooperative.
12 (3) "Board of administration" means the board of
13 directors or other representative body responsible for
14 administration of the association.
15 (4) "Buyer" means a person who purchases a
16 cooperative. The term "purchaser" may be used interchangeably
17 with the term "buyer."
18 (5)(4) "Bylaws" means the bylaws of the association
19 existing from time to time.
20 (6)(5) "Committee" means a group of board members,
21 unit owners, or board members and unit owners appointed by the
22 board or a member of the board to make recommendations to the
23 board regarding the association budget or take action on
24 behalf of the board.
25 (7)(6) "Common areas" means the portions of the
26 cooperative property not included in the units.
27 (8) "Common areas" includes within its meaning the
28 following:
29 (a) The cooperative property which is not included
30 within the units.
31 (b) Easements through units for conduits, ducts,
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Amendment No.
1 plumbing, wiring, and other facilities for the furnishing of
2 utility services to units and the common areas.
3 (c) An easement of support in every portion of a unit
4 which contributes to the support of a building.
5 (d) The property and installations required for the
6 furnishing of utilities and other services to more than one
7 unit or to the common areas.
8 (e) Any other part of the cooperative property
9 designated in the cooperative documents as common areas.
10 (9)(7) "Common expenses" means all expenses and
11 assessments properly incurred by the association for the
12 cooperative.
13 (10)(8) "Common surplus" means the excess of all
14 receipts of the association--including, but not limited to,
15 assessments, rents, profits, and revenues on account of the
16 common areas--over the amount of common expenses.
17 (11) "Conspicuous type" means type in capital letters
18 no smaller than the largest type on the page on which it
19 appears.
20 (12)(9) "Cooperative" means that form of ownership of
21 real property wherein legal title is vested in a corporation
22 or other entity and the beneficial use is evidenced by an
23 ownership interest in the association and a lease or other
24 muniment of title or possession granted by the association as
25 the owner of all the cooperative property.
26 (13)(10) "Cooperative documents" means:
27 (a) The documents that create a cooperative,
28 including, but not limited to, articles of incorporation of
29 the association, bylaws, and the ground lease or other
30 underlying lease, if any.
31 (b) The document evidencing a unit owner's membership
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1 or share in the association.
2 (c) The document recognizing a unit owner's title or
3 right of possession to his or her unit.
4 (14)(11) "Cooperative parcel" means the shares or
5 other evidence of ownership in a cooperative representing an
6 undivided share in the assets of the association, together
7 with the lease or other muniment of title or possession.
8 (15)(12) "Cooperative property" means the lands,
9 leaseholds, and personal property owned by a cooperative
10 association.
11 (16)(13) "Developer" means a person who creates a
12 cooperative or who offers cooperative parcels for sale or
13 lease in the ordinary course of business, but does not include
14 the owner or lessee of a unit who has acquired or leased the
15 unit for his or her own occupancy, nor does it include a
16 condominium association which creates a cooperative by
17 conversion of an existing residential condominium after
18 control of the association has been transferred to the unit
19 owners if, following the conversion, the unit owners will be
20 the same persons.
21 (17) "Division" means the Division of Florida Land
22 Sales, Condominiums and Mobile Homes of the Department of
23 Business and Professional Regulation.
24 (18) "Limited common areas" means those common areas
25 which are reserved for the use of a certain cooperative unit
26 or units to the exclusion of other units, as specified in the
27 cooperative documents.
28 (19)(14) "Operation" or "operation of the cooperative"
29 includes the administration and management of the cooperative
30 property.
31 (20) "Rental agreement" means any written agreement,
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1 or oral agreement if for less duration than 1 year, providing
2 for use and occupancy of premises.
3 (21) "Residential cooperative" means a cooperative
4 consisting of cooperative units, any of which are intended for
5 use as a private residence. A cooperative is not a residential
6 cooperative if the use of the units is intended as primarily
7 commercial or industrial and not more than three units are
8 intended to be used for private residence, domicile, or
9 homestead, or if the units are intended to be used as housing
10 for maintenance, managerial, janitorial, or other operational
11 staff of the cooperative. If a cooperative is a residential
12 cooperative under this definition, but has units intended to
13 be commercial or industrial, then the cooperative is a
14 residential cooperative with respect to those units intended
15 for use as a private residence, domicile, or homestead, but
16 not a residential cooperative with respect to those units
17 intended for use commercially or industrially.
18 (22)(15) "Unit" means a part of the cooperative
19 property which is subject to exclusive use and possession. A
20 unit may be improvements, land, or land and improvements
21 together, as specified in the cooperative documents.
22 (23)(16) "Unit owner" or "owner of a unit" means the
23 person holding a share in the cooperative association and a
24 lease or other muniment of title or possession of a unit that
25 is granted by the association as the owner of the cooperative
26 property.
27 (17) "Residential cooperative" means a cooperative
28 consisting of cooperative units, any of which are intended for
29 use as a private residence. A cooperative is not a
30 residential cooperative if the use of the units is intended as
31 primarily commercial or industrial and not more than three
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1 units are intended to be used for private residence, domicile,
2 or homestead, or if the units are intended to be used as
3 housing for maintenance, managerial, janitorial, or other
4 operational staff of the cooperative. If a cooperative is a
5 residential cooperative under this definition, but has units
6 intended to be commercial or industrial, then the cooperative
7 is a residential cooperative with respect to those units
8 intended for use as a private residence, domicile, or
9 homestead, but not a residential cooperative with respect to
10 those units intended for use commercially or industrially.
11 (18) "Rental agreement" means any written agreement,
12 or oral agreement if for less duration than 1 year, providing
13 for use and occupancy of premises.
14 (19) "Conspicuous type" means type in capital letters
15 no smaller than the largest type on the page on which it
16 appears.
17 (20) "Limited common areas" means those common areas
18 which are reserved for the use of a certain cooperative unit
19 or units to the exclusion of other units, as specified in the
20 cooperative documents.
21 (21) "Common areas" includes within its meaning the
22 following:
23 (a) The cooperative property which is not included
24 within the units.
25 (b) Easements through units for conduits, ducts,
26 plumbing, wiring, and other facilities for the furnishing of
27 utility services to units and the common areas.
28 (c) An easement of support in every portion of a unit
29 which contributes to the support of a building.
30 (d) The property and installations required for the
31 furnishing of utilities and other services to more than one
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1 unit or to the common areas.
2 (e) Any other part of the cooperative property
3 designated in the cooperative documents as common areas.
4 Section 9. Section 719.1035, Florida Statutes, is
5 amended to read:
6 719.1035 Creation of cooperatives.--The date when
7 cooperative existence shall commence is upon commencement of
8 corporate existence of the cooperative association as provided
9 in s. 607.0203. The cooperative documents must be recorded in
10 the county in which the cooperative is located before property
11 may be conveyed or transferred to the cooperative. All
12 persons who have any record interest in any mortgage
13 encumbering the interest in the land being submitted to
14 cooperative ownership must either join in the execution of the
15 cooperative documents or execute, with the requirements for
16 deed, and record, a consent to the cooperative documents or an
17 agreement subordinating their mortgage interest to the
18 cooperative documents. Upon creation of a cooperative, the
19 developer or association shall file the recording information
20 with the division within 30 working days on a form prescribed
21 by the division.
22 Section 10. Subsection (10) is added to section
23 719.104, Florida Statutes, to read:
24 719.104 Cooperatives; access to units; records;
25 financial reports; assessments; purchase of leases.--
26 (10) NOTIFICATION OF DIVISION.--When the board of
27 directors intends to dissolve or merge the cooperative
28 association, the board shall so notify the division before
29 taking any action to dissolve or merge the cooperative
30 association.
31 Section 11. Paragraphs (b) and (c) of subsection (1)
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1 of section 719.106, Florida Statutes, are amended to read:
2 719.106 Bylaws; cooperative ownership.--
3 (1) MANDATORY PROVISIONS.--The bylaws or other
4 cooperative documents shall provide for the following, and if
5 they do not, they shall be deemed to include the following:
6 (b) Quorum; voting requirements; proxies.--
7 1. Unless otherwise provided in the bylaws, the
8 percentage of voting interests required to constitute a quorum
9 at a meeting of the members shall be a majority of voting
10 interests, and decisions shall be made by owners of a majority
11 of the voting interests. Unless otherwise provided in this
12 chapter, or in the articles of incorporation, bylaws, or other
13 cooperative documents, and except as provided in subparagraph
14 (d)1., decisions shall be made by owners of a majority of the
15 voting interests represented at a meeting at which a quorum is
16 present.
17 2. Except as specifically otherwise provided herein,
18 after January 1, 1992, unit owners may not vote by general
19 proxy, but may vote by limited proxies substantially
20 conforming to a limited proxy form adopted by the division.
21 Limited proxies and general proxies may be used to establish a
22 quorum. Limited proxies shall be used for votes taken to
23 waive or reduce reserves in accordance with subparagraph
24 (j)2., for votes taken to amend the articles of incorporation
25 or bylaws pursuant to this section, and for any other matter
26 for which this chapter requires or permits a vote of the unit
27 owners. Except as provided in paragraph (d), after January 1,
28 1992, no proxy, limited or general, shall be used in the
29 election of board members. General proxies may be used for
30 other matters for which limited proxies are not required, and
31 may also be used in voting for nonsubstantive changes to items
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1 for which a limited proxy is required and given.
2 Notwithstanding the provisions of this section, unit owners
3 may vote in person at unit owner meetings. Nothing contained
4 herein shall limit the use of general proxies or require the
5 use of limited proxies or require the use of limited proxies
6 for any agenda item or election at any meeting of a timeshare
7 cooperative.
8 3. Any proxy given shall be effective only for the
9 specific meeting for which originally given and any lawfully
10 adjourned meetings thereof. In no event shall any proxy be
11 valid for a period longer than 90 days after the date of the
12 first meeting for which it was given. Every proxy shall be
13 revocable at any time at the pleasure of the unit owner
14 executing it.
15 4. A member of the board of administration or a
16 committee may submit in writing his or her agreement or
17 disagreement with any action taken at a meeting that the
18 member did not attend. This agreement or disagreement may not
19 be used as a vote for or against the action taken and may not
20 be used for the purposes of creating a quorum.
21 5. When some or all of the board or committee members
22 meet by telephone conference, those board or committee members
23 attending by telephone conference may be counted toward
24 obtaining a quorum and may vote by telephone. A telephone
25 speaker shall be utilized so that the conversation of those
26 board or committee members attending by telephone may be heard
27 by the board or committee members attending in person, as well
28 as by unit owners present at a meeting.
29 (c) Board of administration meetings.--Meetings of the
30 board of administration at which a quorum of the members is
31 present shall be open to all unit owners. Any unit owner may
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1 tape record or videotape meetings of the board of
2 administration. The right to attend such meetings includes
3 the right to speak at such meetings with reference to all
4 designated agenda items. The division shall adopt reasonable
5 rules governing the tape recording and videotaping of the
6 meeting. The association may adopt reasonable written rules
7 governing the frequency, duration, and manner of unit owner
8 statements. Adequate notice of all meetings shall be posted in
9 a conspicuous place upon the cooperative property at least 48
10 continuous hours preceding the meeting, except in an
11 emergency. Any item not included on the notice may be taken
12 up on an emergency basis by at least a majority plus one of
13 the members of the board. Such emergency action shall be
14 noticed and ratified at the next regular meeting of the board.
15 However, written notice of any meeting at which nonemergency
16 special assessments, or at which amendment to rules regarding
17 unit use, will be considered shall be mailed or delivered to
18 the unit owners and posted conspicuously on the cooperative
19 property not less than 14 days prior to the meeting. Evidence
20 of compliance with this 14-day notice shall be made by an
21 affidavit executed by the person providing the notice and
22 filed among the official records of the association. Upon
23 notice to the unit owners, the board shall by duly adopted
24 rule designate a specific location on the cooperative property
25 upon which all notices of board meetings shall be posted.
26 Notice of any meeting in which regular assessments against
27 unit owners are to be considered for any reason shall
28 specifically contain a statement that assessments will be
29 considered and the nature of any such assessments. Meetings of
30 a committee to take final action on behalf of the board or to
31 make recommendations to the board regarding the association
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1 budget are subject to the provisions of this paragraph.
2 Meetings of a committee that does not take final action on
3 behalf of the board or make recommendations to the board
4 regarding the association budget are subject to the provisions
5 of this section, unless those meetings are exempted from this
6 section by the bylaws of the association. Notwithstanding any
7 other law to the contrary, the requirement that board meetings
8 and committee meetings be open to the unit owners is
9 inapplicable to meetings between the board or a committee and
10 the association's attorney, with respect to proposed or
11 pending litigation, when the meeting is held for the purpose
12 of seeking or rendering legal advice.
13 Section 12. Subsection (6) is added to section
14 719.301, Florida Statutes, to read:
15 719.301 Transfer of association control.--
16 (6) The division may adopt rules administering the
17 provisions of this section.
18 Section 13. Subsection (7) is added to section
19 719.403, Florida Statutes, to read:
20 719.403 Phase cooperatives.--
21 (7) Upon recording the cooperative documents or
22 amendments adding phases pursuant to this section, the
23 developer or association shall file the recording information
24 with the division within 30 working days on a form prescribed
25 by the division.
26 Section 14. Subsection (1) of section 719.502, Florida
27 Statutes, is amended to read:
28 719.502 Filing prior to sale or lease.--
29 (1)(a) A developer of a residential cooperative shall
30 file with the division one copy of each of the documents and
31 items required to be furnished to a buyer or lessee by ss.
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1 719.503 and 719.504, if applicable. Until the developer has
2 so filed, a contract for sale or lease of a unit for more than
3 5 years shall be voidable by the purchaser or lessee prior to
4 the closing of his or her purchase or lease of a unit. A
5 developer shall not close on any contract for sale or contract
6 for a lease period of more than 5 years until the developer
7 prepares and files with the division documents complying with
8 the requirements of this chapter and the rules promulgated by
9 the division and until the division notifies the developer
10 that the filing is proper. A developer shall not close on any
11 contract for sale or contract for a lease period of more than
12 5 years, as further provided in s. 719.503(1)(b), until the
13 developer prepares and delivers all documents required by s.
14 719.503(1)(b) to the prospective buyer.
15 (b) The division may by rule develop filing, review,
16 and examination requirements and the relevant timetables
17 necessary to ensure compliance with the notice and disclosure
18 requirements of this section.
19 Section 15. Paragraph (b) of subsection (1) of section
20 719.503, Florida Statutes, is amended to read:
21 719.503 Disclosure prior to sale.--
22 (1) DEVELOPER DISCLOSURE.--
23 (b) Copies of documents to be furnished to prospective
24 buyer or lessee.--Until such time as the developer has
25 furnished the documents listed below to a person who has
26 entered into a contract to purchase a unit or lease it for
27 more than 5 years, the contract may be voided by that person,
28 entitling the person to a refund of any deposit together with
29 interest thereon as provided in s. 719.202. The contract may
30 be terminated by written notice from the proposed buyer or
31 lessee delivered to the developer within 15 days after the
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1 buyer or lessee receives all of the documents required by this
2 section. The developer shall not close for 15 days following
3 the execution of the agreement and delivery of the documents
4 to the buyer as evidenced by a receipt for documents signed by
5 the buyer unless the buyer is informed in the 15-day
6 voidability period and agrees to close prior to the expiration
7 of the 15 days. The developer shall retain in his or her
8 records a separate signed agreement as proof of the buyer's
9 agreement to close prior to the expiration of said voidability
10 period. Said proof shall be retained for a period of 5 years
11 after the date of the closing transaction. The documents to be
12 delivered to the prospective buyer are the prospectus or
13 disclosure statement with all exhibits, if the development is
14 subject to the provisions of s. 719.504, or, if not, then
15 copies of the following which are applicable:
16 1. The question and answer sheet described in s.
17 719.504, and cooperative documents, or the proposed
18 cooperative documents if the documents have not been recorded,
19 which shall include the certificate of a surveyor
20 approximately representing the locations required by s.
21 719.104.
22 2. The documents creating the association.
23 3. The bylaws.
24 4. The ground lease or other underlying lease of the
25 cooperative.
26 5. The management contract, maintenance contract, and
27 other contracts for management of the association and
28 operation of the cooperative and facilities used by the unit
29 owners having a service term in excess of 1 year, and any
30 management contracts that are renewable.
31 6. The estimated operating budget for the cooperative
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1 and a schedule of expenses for each type of unit, including
2 fees assessed to a shareholder who has exclusive use of
3 limited common areas, where such costs are shared only by
4 those entitled to use such limited common areas.
5 7. The lease of recreational and other facilities that
6 will be used only by unit owners of the subject cooperative.
7 8. The lease of recreational and other common areas
8 that will be used by unit owners in common with unit owners of
9 other cooperatives.
10 9. The form of unit lease if the offer is of a
11 leasehold.
12 10. Any declaration of servitude of properties serving
13 the cooperative but not owned by unit owners or leased to them
14 or the association.
15 11. If the development is to be built in phases or if
16 the association is to manage more than one cooperative, a
17 description of the plan of phase development or the
18 arrangements for the association to manage two or more
19 cooperatives.
20 12. If the cooperative is a conversion of existing
21 improvements, the statements and disclosure required by s.
22 719.616.
23 13. The form of agreement for sale or lease of units.
24 14. A copy of the floor plan of the unit and the plot
25 plan showing the location of the residential buildings and the
26 recreation and other common areas.
27 15. A copy of all covenants and restrictions which
28 will affect the use of the property and which are not
29 contained in the foregoing.
30 16. If the developer is required by state or local
31 authorities to obtain acceptance or approval of any dock or
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1 marina facilities intended to serve the cooperative, a copy of
2 any such acceptance or approval acquired by the time of filing
3 with the division pursuant to s. 719.502(1) or a statement
4 that such acceptance or approval has not been acquired or
5 received.
6 17. Evidence demonstrating that the developer has an
7 ownership, leasehold, or contractual interest in the land upon
8 which the cooperative is to be developed.
9 Section 16. Section 719.621, Florida Statutes, is
10 created to read:
11 719.621 Rulemaking authority.--The division may adopt
12 rules to administer and ensure compliance with a developer's
13 obligations with respect to cooperative conversions concerning
14 the filing and noticing of intended conversions, rental
15 agreement extensions, rights of first refusal, and disclosures
16 and post-purchase protections.
17 Section 17. Subsection (28) of section 721.05, Florida
18 Statutes, is amended to read:
19 721.05 Definitions.--As used in this chapter, the
20 term:
21 (28) "Timeshare estate" means a right to occupy a
22 timeshare unit, coupled with a freehold estate or an estate
23 for years with a future interest in a timeshare property or a
24 specified portion thereof. The term shall also mean an
25 interest in a condominium unit pursuant to s. 718.103 s.
26 718.103(22).
27 Section 18. This act shall take effect upon becoming a
28 law.
29
30
31
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1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 Delete everything before the enacting clause
4
5 and insert:
6 A bill to be entitled
7 An act relating to condominiums and
8 cooperatives; amending s. 718.103, F.S.;
9 defining the terms "buyer" and "division";
10 amending s. 718.111, F.S.; providing for the
11 operation of certain condominiums created prior
12 to 1977 as single associations; permitting
13 consolidated financial operation; requiring a
14 developer-controlled association to exercise
15 due diligence to obtain and maintain insurance;
16 providing that failure to obtain and maintain
17 adequate insurance shall constitute a breach of
18 fiduciary responsibility by the
19 developer-appointed members of the board of
20 directors; requiring adequate insurance or
21 fidelity bonding to cover funds in the custody
22 of an association; providing for financial
23 reporting requirements; providing for the
24 commingling of reserve and operating funds;
25 amending s. 718.112, F.S.; providing
26 requirements for eligibility to be a candidate
27 for the board; providing for the validity of
28 certain actions by the board; amending
29 procedures for elections; amending procedures
30 for recall of board members; amending
31 procedures for mailing of notices; amending
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1 procedures for annual budgets; deleting
2 fidelity bonding requirements; amending s.
3 718.115, F.S.; providing procedures that
4 allocate cable television services as a common
5 expense; amending ss. 718.503, 718.504, F.S.;
6 requiring disclosure of financial information;
7 amending s. 718.116, F.S.; providing for unit
8 owners and the developer to be assessed in
9 accordance with their ownership interest in
10 losses resulting from a natural disaster or an
11 act of God; amending s. 719.103, F.S.; defining
12 the terms "buyer" and "division"; amending s.
13 719.1035, F.S.; requiring filing of
14 information; amending s. 719.104, F.S.;
15 requiring notification; amending s. 719.106,
16 F.S.; providing requirements relating to
17 association meetings; amending s. 719.301,
18 F.S.; providing rulemaking authority; amending
19 s. 719.403, F.S.; requiring filing of
20 information; amending s. 719.502, F.S.;
21 providing conditions precedent to closing on a
22 contract for sale or specified contracts for
23 lease; providing rulemaking authority; amending
24 s. 719.503, F.S.; providing conditions for
25 closing within the 15-day voidability period;
26 creating s. 719.621, F.S.; providing rulemaking
27 authority; amending s. 721.05, F.S.; conforming
28 a cross-reference; providing an effective date.
29
30
31
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