HB 1223

CS

CHAMBER ACTION

1	The Committee on State Administration recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to condominium associations; amending s.
7	718.110, F.S.; providing for grandfathering and
8	modification of rental rights; providing for certain
9	application of the amendment of unit owners' rental
10	rights; providing certain voting and approval criteria for
11	amendments depriving owners of certain rights; creating s.
12	718.5011, F.S.; creating an Office of the Condominium
13	Ombudsman within the Division of Florida Land Sales,
14	Condominiums, and Mobile Homes; providing for the office's
15	independence from the division; authorizing the Joint
16	Legislative Auditing Committee to appoint the ombudsman;
17	requiring the ombudsman to be an attorney; providing for
18	the filling of a vacant ombudsman position; requiring the
19	ombudsman and staff to subscribe to the oath of office
20	required of state officers; prohibiting the ombudsman and
21	staff from engaging in any other profession, serving as a
22	representative or employee of any political party, or
23	receiving remuneration for activities on behalf of
24	political candidates; prohibiting the ombudsman and staff
25	from seeking public office unless resigned from the Office
26	of the Condominium Ombudsman; providing requirements and
27	limitations for office staff; creating s. 718.5012, F.S.;
28	providing for powers and duties of the ombudsman; creating
29	s. 718.5013, F.S.; providing for compensation and expenses
30	for the office; authorizing the ombudsman to employ
31	clerical and technical assistants for certain purposes;
32	creating s. 718.5014, F.S.; providing for the location of
33	the ombudsman's office; creating s. 718.5015, F.S.;
34	creating the Advisory Council on Condominiums; providing
35	for membership, functions, meetings, and offices of the
36	council; amending s. 718.504, F.S.; revising provisions
37	relating to certain prospectus and offering circulars;
38	requiring developers of certain condominiums to provide a
39	prospectus including a "Frequently Asked Questions and
40	Answers" document; requiring the document to contain
41	certain information; reducing the threshold amount to be
42	required to be disclosed in controversy for litigation;
43	preserving the department's authority to pursue certain
44	remedies; providing an effective date.
45
46	Be It Enacted by the Legislature of the State of Florida:
47
48	Section 1.  Subsection (13) is added to section 718.110,
49	Florida Statutes, to read:
50	718.110  Amendment of declaration; correction of error or
51	omission in declaration by circuit court; grandfathering and
52	modification of certain rights.--
53	(13)(a)  Unless expressly stated in the amendment, any
54	amendment restricting unit owners' rights relating to the rental
55	of units, keeping of pets, or allocation of parking spaces shall
56	apply only to unit owners who purchase their unit after the
57	effective date of that amendment.
58	(b)  Notwithstanding any other provision of law, or of the
59	declaration or bylaws, if an amendment expressly deprives
60	current unit owners of any part of their rights mentioned in
61	subsection (a), it must be approved by at least a majority of
62	the voting interests. A declaration or an amendment to a
63	declaration may provide for a higher super majority vote
64	requirement.
65	Section 2.  Section 718.5011, Florida Statutes, is created
66	to read:
67	718.5011  Ombudsman; appointment; oath; restrictions on
68	ombudsman and his or her employees.--
69	(1)  There is created an Office of the Condominium
70	Ombudsman that for administrative purposes shall be located
71	within the Division of Florida Land Sales, Condominiums, and
72	Mobile Homes. However, the office shall be independent of the
73	division.
74	(2)  The Joint Legislative Auditing Committee shall appoint
75	an ombudsman by majority vote of the members of that committee.
76	The ombudsman shall be an attorney admitted to practice before
77	the Florida Supreme Court and shall serve at the pleasure of the
78	Joint Legislative Auditing Committee. Vacancies in the office
79	shall be filled in the same manner as the original appointment.
80	The ombudsman and attorneys under his or her staff shall take
81	and subscribe to the oath of office required of state officers
82	by the State Constitution. No officer or full-time employee of
83	the ombudsman's office shall actively engage in any other
84	business or profession; serve as the representative of any
85	political party, executive committee, or other governing body
86	thereof; serve as an executive, officer, or employee of any
87	political party, committee, organization, or association;
88	receive remuneration for activities on behalf of any candidate
89	for public office; or engage on behalf of any candidate for
90	public office in the solicitation of votes or other activities
91	on behalf of such candidacy. Neither the ombudsman nor any
92	employee of his or her office shall become a candidate for
93	election to public office unless he or she first resigns from
94	his or her office or employment.
95	Section 3.  Section 718.5012, Florida Statutes, is created
96	to read:
97	718.5012  Ombudsman; powers and duties.--The ombudsman
98	shall have such powers as are necessary to carry out the duties
99	of his or her office, including, but not limited to, the
100	following specific powers:
101	(1)  To have access to and use of all files and records of
102	the division and of all condominium associations, by subpoena if
103	necessary.
104	(2)  To conduct onsite inspections of condominiums,
105	including surprise inspections in accordance with rules
106	providing for such inspections.
107	(3)  To prepare and issue reports, recommendations, and
108	proposed orders to the division, the Governor, the Advisory
109	Council on Condominiums, the President of the Senate, the
110	Speaker of the House of Representatives, and minority leaders of
111	the Senate and the House of Representatives on any matter or
112	subject within the jurisdiction of the division, and to make
113	such recommendations as he or she deems appropriate for
114	legislation relative to division procedures, rules,
115	jurisdiction, personnel, and functions.
116	(4)  To act as liaison between the division and unit
117	owners, and to assist any unit owner in the preparation and
118	filing of a complaint to be investigated by the division. The
119	ombudsman shall establish procedures for receiving complaints.
120	Any complaint deemed valid by the ombudsman and properly falling
121	within the jurisdiction of the division and requiring remedial
122	action shall be identified and promptly filed with the division.
123	Upon the concurrence of the division, the ombudsman shall
124	establish target dates for concluding an investigation and for
125	taking appropriate specified remedial action. The ombudsman may
126	recommend that the division initiate enforcement proceedings in
127	accordance with chapter 120. The department and the ombudsman
128	may take findings of a criminal nature and submit them as
129	evidence to the state attorney's office and work with such
130	office to bring charges against the alleged parties involved.
131	(5)  To monitor, investigate, and review condominium
132	elections and meetings. In addition, the ombudsman shall:
133	(a)  Prove to the division, by clear and convincing
134	evidence, that a member of a condominium board has attempted,
135	engaged in, conspired to engage in, or willfully and knowingly
136	benefited from electoral fraud in order for the division to
137	order such member removed from office. Such an order of removal
138	shall also prohibit such member from running for election to any
139	office of the condominium board in the state for 4 years. If any
140	person is so removed from office twice, such person shall be
141	barred for life from serving on a condominium board. Factual
142	findings forming the basis for an order of removal shall be
143	subject to judicial review only for abuse of discretion.
144	(b)  Jointly, with the division, adopt rules governing
145	removal proceedings. Such rules shall, at a minimum, provide the
146	accused board member with adequate notice, opportunity to be
147	heard, the right to confront and cross-examine witnesses, the
148	right to submit rebuttal evidence, and the right to counsel.
149
150	Neither this subsection nor rules adopted to implement it shall
151	be construed to require provision of counsel or witnesses, or
152	other assistance, at public expense.
153	(6)  To resolve disputes among unit owners by ordering
154	mediation or arbitration in the same manner as the division.
155	(7)  To make recommendations to the division for changes in
156	rules and procedures for the filing, investigation, and
157	resolution of complaints filed by unit owners, associations, and
158	managers.
159	Section 4.  Section 718.5013, Florida Statutes, is created
160	to read:
161	718.5013  Ombudsman; compensation and expenses.--
162	(1)  All costs and expenses incurred by the Office of the
163	Condominium Ombudsman shall be paid from disbursements from the
164	Division of Florida Land Sales, Condominiums, and Mobile Homes
165	Trust Fund and shall require approval of the Joint Legislative
166	Auditing Committee.
167	(2)  The Joint Legislative Auditing Committee may authorize
168	the ombudsman to employ clerical and technical assistants whose
169	qualifications, duties, and responsibilities the committee shall
170	from time to time prescribe, and to enter into such contracts as
171	necessary. The committee may authorize retention of the services
172	of additional attorneys or experts to the extent that the best
173	interests of the people of the state will be better served
174	thereby, including the retention of expert witnesses and other
175	technical personnel for participation in contested proceedings
176	before the division.
177	Section 5.  Section 718.5014, Florida Statutes, is created
178	to read:
179	718.5014  Ombudsman; location.--The ombudsman shall
180	maintain his or her principal office in Leon County on the
181	premises of the division or, if suitable space cannot be
182	provided there, at such other place convenient to the offices of
183	the division as will enable the ombudsman to expeditiously carry
184	out the duties and functions of his or her office. The ombudsman
185	may establish branch offices upon the concurrence of the Joint
186	Legislative Auditing Committee
187	Section 6.  Section 718.5015, Florida Statutes, is created
188	to read:
189	718.5015  Advisory council; membership functions.--
190	(1)  There is created the Advisory Council on Condominiums.
191	The council shall consist of seven members. Two members shall be
192	appointed by the Speaker of the House of Representatives, two
193	members shall be appointed by the President of the Senate, and
194	three members shall be appointed by the Governor. At least one
195	member shall represent timeshare condominiums. Members shall be
196	appointed to 2-year terms; however, of the initial appointments,
197	one of the members appointed by each of the Governor, the
198	Speaker of the House of Representatives, and the President of
199	the Senate shall be appointed to 1-year terms. In addition to
200	these appointed members, the director of the Division of Florida
201	Land Sales, Condominiums, and Mobile Homes shall serve as an ex
202	officio member of the council. It is the intent of the
203	Legislature that the persons appointed to this council represent
204	a cross-section of persons interested in condominium issues. For
205	administrative purposes, the council shall be located in the
206	Division of Florida Land Sales, Condominiums, and Mobile Homes
207	of the Department of Business and Professional Regulation.
208	Members of the council shall serve without compensation, but
209	shall be entitled to receive per diem and travel expenses
210	pursuant to s. 112.061 while on official business.
211	(2)  The functions of the advisory council shall be to:
212	(a)  Receive input from the public regarding issues of
213	concern with respect to condominiums and to receive
214	recommendations for any changes to be made in the condominium
215	law. The issues that the council shall consider shall include,
216	but shall not be limited to, the rights and responsibilities of
217	the unit owners in relation to the rights and responsibilities
218	of the association.
219	(b)  Review, evaluate, and advise the division concerning
220	revisions and adoption of rules affecting condominiums.
221	(c)  Recommend improvements, if needed, in the education
222	programs offered by the division.
223	(3)  The council is authorized to elect a chair and vice
224	chair and such other offices as it may deem advisable. The
225	council shall meet at the call of its chair, at the request of a
226	majority of its membership, at the request of the division, or
227	at such times as may be prescribed by its rules. A majority of
228	the members of the council shall constitute a quorum for the
229	transaction of all business and the carrying out of the duties
230	of the council.
231	Section 7.  Section 718.504, Florida Statutes, is amended
232	to read:
233	718.504  Prospectus or offering circular; "Frequently Asked
234	Questions and Answers".--Every developer of a residential
235	condominium which contains more than 20 residential units, or
236	which is part of a group of residential condominiums which will
237	be served by property to be used in common by unit owners of
238	more than 20 residential units, shall prepare a prospectus or
239	offering circular and file it with the Division of Florida Land
240	Sales, Condominiums, and Mobile Homes prior to entering into an
241	enforceable contract of purchase and sale of any unit or lease
242	of a unit for more than 5 years and shall furnish a copy of the
243	prospectus or offering circular to each buyer. In addition to
244	the prospectus or offering circular, any prospective each buyer
245	from the developer or a current unit owner shall be furnished a
246	separate document page entitled "Frequently Asked Questions and
247	Answers," which shall be in accordance with a format approved by
248	the division and a copy of the financial information required by
249	s. 718.111. This document page shall, in readable language,
250	inform prospective purchasers regarding their voting rights and
251	unit use restrictions, including restrictions on the leasing of
252	a unit; shall indicate whether and in what amount the unit
253	owners or the association is obligated to pay rent or land use
254	fees for recreational or other commonly used facilities; shall
255	contain a statement identifying that amount of assessment which,
256	pursuant to the budget, would be levied upon each unit type,
257	exclusive of any special assessments, and which shall further
258	identify the basis upon which assessments are levied, whether
259	monthly, quarterly, or otherwise; shall state and identify any
260	court cases in which the association is currently a party of
261	record in which the association may face liability in excess of
262	$25,000 or more $100,000; and which shall further state whether
263	membership in a recreational facilities association is
264	mandatory, and if so, shall identify the fees currently charged
265	per unit type. The division shall by rule require such other
266	disclosure as in its judgment will assist prospective
267	purchasers. The prospectus or offering circular may include more
268	than one condominium, although not all such units are being
269	offered for sale as of the date of the prospectus or offering
270	circular. The prospectus or offering circular must contain the
271	following information:
272	(1)  The front cover or the first page must contain only:
273	(a)  The name of the condominium.
274	(b)  The following statements in conspicuous type:
275	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
276	MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
277	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
278	NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
279	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
280	MATERIALS.
281	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
282	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
283	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
284	REPRESENTATIONS.
285	(2)  Summary: The next page must contain all statements
286	required to be in conspicuous type in the prospectus or offering
287	circular.
288	(3)  A separate index of the contents and exhibits of the
289	prospectus.
290	(4)  Beginning on the first page of the text (not including
291	the summary and index), a description of the condominium,
292	including, but not limited to, the following information:
293	(a)  Its name and location.
294	(b)  A description of the condominium property, including,
295	without limitation:
296	1.  The number of buildings, the number of units in each
297	building, the number of bathrooms and bedrooms in each unit, and
298	the total number of units, if the condominium is not a phase
299	condominium, or the maximum number of buildings that may be
300	contained within the condominium, the minimum and maximum
301	numbers of units in each building, the minimum and maximum
302	numbers of bathrooms and bedrooms that may be contained in each
303	unit, and the maximum number of units that may be contained
304	within the condominium, if the condominium is a phase
305	condominium.
306	2.  The page in the condominium documents where a copy of
307	the plot plan and survey of the condominium is located.
308	3.  The estimated latest date of completion of
309	constructing, finishing, and equipping. In lieu of a date, the
310	description shall include a statement that the estimated date of
311	completion of the condominium is in the purchase agreement and a
312	reference to the article or paragraph containing that
313	information.
314	(c)  The maximum number of units that will use facilities
315	in common with the condominium. If the maximum number of units
316	will vary, a description of the basis for variation and the
317	minimum amount of dollars per unit to be spent for additional
318	recreational facilities or enlargement of such facilities. If
319	the addition or enlargement of facilities will result in a
320	material increase of a unit owner's maintenance expense or
321	rental expense, if any, the maximum increase and limitations
322	thereon shall be stated.
323	(5)(a)  A statement in conspicuous type describing whether
324	the condominium is created and being sold as fee simple
325	interests or as leasehold interests. If the condominium is
326	created or being sold on a leasehold, the location of the lease
327	in the disclosure materials shall be stated.
328	(b)  If timeshare estates are or may be created with
329	respect to any unit in the condominium, a statement in
330	conspicuous type stating that timeshare estates are created and
331	being sold in units in the condominium.
332	(6)  A description of the recreational and other commonly
333	used facilities that will be used only by unit owners of the
334	condominium, including, but not limited to, the following:
335	(a)  Each room and its intended purposes, location,
336	approximate floor area, and capacity in numbers of people.
337	(b)  Each swimming pool, as to its general location,
338	approximate size and depths, approximate deck size and capacity,
339	and whether heated.
340	(c)  Additional facilities, as to the number of each
341	facility, its approximate location, approximate size, and
342	approximate capacity.
343	(d)  A general description of the items of personal
344	property and the approximate number of each item of personal
345	property that the developer is committing to furnish for each
346	room or other facility or, in the alternative, a representation
347	as to the minimum amount of expenditure that will be made to
348	purchase the personal property for the facility.
349	(e)  The estimated date when each room or other facility
350	will be available for use by the unit owners.
351	(f)1.  An identification of each room or other facility to
352	be used by unit owners that will not be owned by the unit owners
353	or the association;
354	2.  A reference to the location in the disclosure materials
355	of the lease or other agreements providing for the use of those
356	facilities; and
357	3.  A description of the terms of the lease or other
358	agreements, including the length of the term; the rent payable,
359	directly or indirectly, by each unit owner, and the total rent
360	payable to the lessor, stated in monthly and annual amounts for
361	the entire term of the lease; and a description of any option to
362	purchase the property leased under any such lease, including the
363	time the option may be exercised, the purchase price or how it
364	is to be determined, the manner of payment, and whether the
365	option may be exercised for a unit owner's share or only as to
366	the entire leased property.
367	(g)  A statement as to whether the developer may provide
368	additional facilities not described above; their general
369	locations and types; improvements or changes that may be made;
370	the approximate dollar amount to be expended; and the maximum
371	additional common expense or cost to the individual unit owners
372	that may be charged during the first annual period of operation
373	of the modified or added facilities.
374
375	Descriptions as to locations, areas, capacities, numbers,
376	volumes, or sizes may be stated as approximations or minimums.
377	(7)  A description of the recreational and other facilities
378	that will be used in common with other condominiums, community
379	associations, or planned developments which require the payment
380	of the maintenance and expenses of such facilities, either
381	directly or indirectly, by the unit owners. The description
382	shall include, but not be limited to, the following:
383	(a)  Each building and facility committed to be built.
384	(b)  Facilities not committed to be built except under
385	certain conditions, and a statement of those conditions or
386	contingencies.
387	(c)  As to each facility committed to be built, or which
388	will be committed to be built upon the happening of one of the
389	conditions in paragraph (b), a statement of whether it will be
390	owned by the unit owners having the use thereof or by an
391	association or other entity which will be controlled by them, or
392	others, and the location in the exhibits of the lease or other
393	document providing for use of those facilities.
394	(d)  The year in which each facility will be available for
395	use by the unit owners or, in the alternative, the maximum
396	number of unit owners in the project at the time each of all of
397	the facilities is committed to be completed.
398	(e)  A general description of the items of personal
399	property, and the approximate number of each item of personal
400	property, that the developer is committing to furnish for each
401	room or other facility or, in the alternative, a representation
402	as to the minimum amount of expenditure that will be made to
403	purchase the personal property for the facility.
404	(f)  If there are leases, a description thereof, including
405	the length of the term, the rent payable, and a description of
406	any option to purchase.
407
408	Descriptions shall include location, areas, capacities, numbers,
409	volumes, or sizes and may be stated as approximations or
410	minimums.
411	(8)  Recreation lease or associated club membership:
412	(a)  If any recreational facilities or other facilities
413	offered by the developer and available to, or to be used by,
414	unit owners are to be leased or have club membership associated,
415	the following statement in conspicuous type shall be included:
416	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
417	CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
418	CONDOMINIUM. There shall be a reference to the location in the
419	disclosure materials where the recreation lease or club
420	membership is described in detail.
421	(b)  If it is mandatory that unit owners pay a fee, rent,
422	dues, or other charges under a recreational facilities lease or
423	club membership for the use of facilities, there shall be in
424	conspicuous type the applicable statement:
425	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
426	MANDATORY FOR UNIT OWNERS; or
427	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
428	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
429	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
430	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
431	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
432	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
433	4.  A similar statement of the nature of the organization
434	or the manner in which the use rights are created, and that unit
435	owners are required to pay.
436
437	Immediately following the applicable statement, the location in
438	the disclosure materials where the development is described in
439	detail shall be stated.
440	(c)  If the developer, or any other person other than the
441	unit owners and other persons having use rights in the
442	facilities, reserves, or is entitled to receive, any rent, fee,
443	or other payment for the use of the facilities, then there shall
444	be the following statement in conspicuous type: THE UNIT OWNERS
445	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
446	RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
447	following this statement, the location in the disclosure
448	materials where the rent or land use fees are described in
449	detail shall be stated.
450	(d)  If, in any recreation format, whether leasehold, club,
451	or other, any person other than the association has the right to
452	a lien on the units to secure the payment of assessments, rent,
453	or other exactions, there shall appear a statement in
454	conspicuous type in substantially the following form:
455	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
456	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
457	RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
458	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
459	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
460	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
461	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
462	OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
463	THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
464
465	Immediately following the applicable statement, the location in
466	the disclosure materials where the lien or lien right is
467	described in detail shall be stated.
468	(9)  If the developer or any other person has the right to
469	increase or add to the recreational facilities at any time after
470	the establishment of the condominium whose unit owners have use
471	rights therein, without the consent of the unit owners or
472	associations being required, there shall appear a statement in
473	conspicuous type in substantially the following form:
474	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
475	OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
476	statement, the location in the disclosure materials where such
477	reserved rights are described shall be stated.
478	(10)  A statement of whether the developer's plan includes
479	a program of leasing units rather than selling them, or leasing
480	units and selling them subject to such leases. If so, there
481	shall be a description of the plan, including the number and
482	identification of the units and the provisions and term of the
483	proposed leases, and a statement in boldfaced type that: THE
484	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
485	(11)  The arrangements for management of the association
486	and maintenance and operation of the condominium property and of
487	other property that will serve the unit owners of the
488	condominium property, and a description of the management
489	contract and all other contracts for these purposes having a
490	term in excess of 1 year, including the following:
491	(a)  The names of contracting parties.
492	(b)  The term of the contract.
493	(c)  The nature of the services included.
494	(d)  The compensation, stated on a monthly and annual
495	basis, and provisions for increases in the compensation.
496	(e)  A reference to the volumes and pages of the
497	condominium documents and of the exhibits containing copies of
498	such contracts.
499
500	Copies of all described contracts shall be attached as exhibits.
501	If there is a contract for the management of the condominium
502	property, then a statement in conspicuous type in substantially
503	the following form shall appear, identifying the proposed or
504	existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
505	THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
506	CONTRACT MANAGER). Immediately following this statement, the
507	location in the disclosure materials of the contract for
508	management of the condominium property shall be stated.
509	(12)  If the developer or any other person or persons other
510	than the unit owners has the right to retain control of the
511	board of administration of the association for a period of time
512	which can exceed 1 year after the closing of the sale of a
513	majority of the units in that condominium to persons other than
514	successors or alternate developers, then a statement in
515	conspicuous type in substantially the following form shall be
516	included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
517	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
518	HAVE BEEN SOLD. Immediately following this statement, the
519	location in the disclosure materials where this right to control
520	is described in detail shall be stated.
521	(13)  If there are any restrictions upon the sale,
522	transfer, conveyance, or leasing of a unit, then a statement in
523	conspicuous type in substantially the following form shall be
524	included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
525	CONTROLLED. Immediately following this statement, the location
526	in the disclosure materials where the restriction, limitation,
527	or control on the sale, lease, or transfer of units is described
528	in detail shall be stated.
529	(14)  If the condominium is part of a phase project, the
530	following information shall be stated:
531	(a)  A statement in conspicuous type in substantially the
532	following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
533	UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
534	this statement, the location in the disclosure materials where
535	the phasing is described shall be stated.
536	(b)  A summary of the provisions of the declaration which
537	provide for the phasing.
538	(c)  A statement as to whether or not residential buildings
539	and units which are added to the condominium may be
540	substantially different from the residential buildings and units
541	originally in the condominium. If the added residential
542	buildings and units may be substantially different, there shall
543	be a general description of the extent to which such added
544	residential buildings and units may differ, and a statement in
545	conspicuous type in substantially the following form shall be
546	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
547	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
548	UNITS IN THE CONDOMINIUM. Immediately following this statement,
549	the location in the disclosure materials where the extent to
550	which added residential buildings and units may substantially
551	differ is described shall be stated.
552	(d)  A statement of the maximum number of buildings
553	containing units, the maximum and minimum numbers of units in
554	each building, the maximum number of units, and the minimum and
555	maximum square footage of the units that may be contained within
556	each parcel of land which may be added to the condominium.
557	(15)  If a condominium created on or after July 1, 2000, is
558	or may become part of a multicondominium, the following
559	information must be provided:
560	(a)  A statement in conspicuous type in substantially the
561	following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
562	MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
563	(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
564	this statement, the location in the prospectus or offering
565	circular and its exhibits where the multicondominium aspects of
566	the offering are described must be stated.
567	(b)  A summary of the provisions in the declaration,
568	articles of incorporation, and bylaws which establish and
569	provide for the operation of the multicondominium, including a
570	statement as to whether unit owners in the condominium will have
571	the right to use recreational or other facilities located or
572	planned to be located in other condominiums operated by the same
573	association, and the manner of sharing the common expenses
574	related to such facilities.
575	(c)  A statement of the minimum and maximum number of
576	condominiums, and the minimum and maximum number of units in
577	each of those condominiums, which will or may be operated by the
578	association, and the latest date by which the exact number will
579	be finally determined.
580	(d)  A statement as to whether any of the condominiums in
581	the multicondominium may include units intended to be used for
582	nonresidential purposes and the purpose or purposes permitted
583	for such use.
584	(e)  A general description of the location and approximate
585	acreage of any land on which any additional condominiums to be
586	operated by the association may be located.
587	(16)  If the condominium is created by conversion of
588	existing improvements, the following information shall be
589	stated:
590	(a)  The information required by s. 718.616.
591	(b)  A caveat that there are no express warranties unless
592	they are stated in writing by the developer.
593	(17)  A summary of the restrictions, if any, to be imposed
594	on units concerning the use of any of the condominium property,
595	including statements as to whether there are restrictions upon
596	children and pets, and reference to the volumes and pages of the
597	condominium documents where such restrictions are found, or if
598	such restrictions are contained elsewhere, then a copy of the
599	documents containing the restrictions shall be attached as an
600	exhibit.
601	(18)  If there is any land that is offered by the developer
602	for use by the unit owners and that is neither owned by them nor
603	leased to them, the association, or any entity controlled by
604	unit owners and other persons having the use rights to such
605	land, a statement shall be made as to how such land will serve
606	the condominium. If any part of such land will serve the
607	condominium, the statement shall describe the land and the
608	nature and term of service, and the declaration or other
609	instrument creating such servitude shall be included as an
610	exhibit.
611	(19)  The manner in which utility and other services,
612	including, but not limited to, sewage and waste disposal, water
613	supply, and storm drainage, will be provided and the person or
614	entity furnishing them.
615	(20)  An explanation of the manner in which the
616	apportionment of common expenses and ownership of the common
617	elements has been determined.
618	(21)  An estimated operating budget for the condominium and
619	the association, and a schedule of the unit owner's expenses
620	shall be attached as an exhibit and shall contain the following
621	information:
622	(a)  The estimated monthly and annual expenses of the
623	condominium and the association that are collected from unit
624	owners by assessments.
625	(b)  The estimated monthly and annual expenses of each unit
626	owner for a unit, other than common expenses paid by all unit
627	owners, payable by the unit owner to persons or entities other
628	than the association, as well as to the association, including
629	fees assessed pursuant to s. 718.113(1) for maintenance of
630	limited common elements where such costs are shared only by
631	those entitled to use the limited common element, and the total
632	estimated monthly and annual expense. There may be excluded from
633	this estimate expenses which are not provided for or
634	contemplated by the condominium documents, including, but not
635	limited to, the costs of private telephone; maintenance of the
636	interior of condominium units, which is not the obligation of
637	the association; maid or janitorial services privately
638	contracted for by the unit owners; utility bills billed directly
639	to each unit owner for utility services to his or her unit;
640	insurance premiums other than those incurred for policies
641	obtained by the condominium; and similar personal expenses of
642	the unit owner. A unit owner's estimated payments for
643	assessments shall also be stated in the estimated amounts for
644	the times when they will be due.
645	(c)  The estimated items of expenses of the condominium and
646	the association, except as excluded under paragraph (b),
647	including, but not limited to, the following items, which shall
648	be stated either as an association expense collectible by
649	assessments or as unit owners' expenses payable to persons other
650	than the association:
651	1.  Expenses for the association and condominium:
652	a.  Administration of the association.
653	b.  Management fees.
654	c.  Maintenance.
655	d.  Rent for recreational and other commonly used
656	facilities.
657	e.  Taxes upon association property.
658	f.  Taxes upon leased areas.
659	g.  Insurance.
660	h.  Security provisions.
661	i.  Other expenses.
662	j.  Operating capital.
663	k.  Reserves.
664	l.  Fees payable to the division.
665	2.  Expenses for a unit owner:
666	a.  Rent for the unit, if subject to a lease.
667	b.  Rent payable by the unit owner directly to the lessor
668	or agent under any recreational lease or lease for the use of
669	commonly used facilities, which use and payment is a mandatory
670	condition of ownership and is not included in the common expense
671	or assessments for common maintenance paid by the unit owners to
672	the association.
673	(d)  The estimated amounts shall be stated for a period of
674	at least 12 months and may distinguish between the period prior
675	to the time unit owners other than the developer elect a
676	majority of the board of administration and the period after
677	that date.
678	(22)  A schedule of estimated closing expenses to be paid
679	by a buyer or lessee of a unit and a statement of whether title
680	opinion or title insurance policy is available to the buyer and,
681	if so, at whose expense.
682	(23)  The identity of the developer and the chief operating
683	officer or principal directing the creation and sale of the
684	condominium and a statement of its and his or her experience in
685	this field.
686	(24)  Copies of the following, to the extent they are
687	applicable, shall be included as exhibits:
688	(a)  The declaration of condominium, or the proposed
689	declaration if the declaration has not been recorded.
690	(b)  The articles of incorporation creating the
691	association.
692	(c)  The bylaws of the association.
693	(d)  The ground lease or other underlying lease of the
694	condominium.
695	(e)  The management agreement and all maintenance and other
696	contracts for management of the association and operation of the
697	condominium and facilities used by the unit owners having a
698	service term in excess of 1 year.
699	(f)  The estimated operating budget for the condominium and
700	the required schedule of unit owners' expenses.
701	(g)  A copy of the floor plan of the unit and the plot plan
702	showing the location of the residential buildings and the
703	recreation and other common areas.
704	(h)  The lease of recreational and other facilities that
705	will be used only by unit owners of the subject condominium.
706	(i)  The lease of facilities used by owners and others.
707	(j)  The form of unit lease, if the offer is of a
708	leasehold.
709	(k)  A declaration of servitude of properties serving the
710	condominium but not owned by unit owners or leased to them or
711	the association.
712	(l)  The statement of condition of the existing building or
713	buildings, if the offering is of units in an operation being
714	converted to condominium ownership.
715	(m)  The statement of inspection for termite damage and
716	treatment of the existing improvements, if the condominium is a
717	conversion.
718	(n)  The form of agreement for sale or lease of units.
719	(o)  A copy of the agreement for escrow of payments made to
720	the developer prior to closing.
721	(p)  A copy of the documents containing any restrictions on
722	use of the property required by subsection (17).
723	(25)  Any prospectus or offering circular complying, prior
724	to the effective date of this act, with the provisions of former
725	ss. 711.69 and 711.802 may continue to be used without amendment
726	or may be amended to comply with the provisions of this chapter.
727	(26)  A brief narrative description of the location and
728	effect of all existing and intended easements located or to be
729	located on the condominium property other than those described
730	in the declaration.
731	(27)  If the developer is required by state or local
732	authorities to obtain acceptance or approval of any dock or
733	marina facilities intended to serve the condominium, a copy of
734	any such acceptance or approval acquired by the time of filing
735	with the division under s. 718.502(1) or a statement that such
736	acceptance or approval has not been acquired or received.
737	(28)  Evidence demonstrating that the developer has an
738	ownership, leasehold, or contractual interest in the land upon
739	which the condominium is to be developed.
740	Section 8.  The Department of Business and Professional
741	Regulation may continue to prosecute any existing legal
742	proceedings and related administrative cases that are in
743	existence on the effective date of this act.
744	Section 9.  This act shall take effect July 1, 2004.

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