Senate Bill sb1940

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    Florida Senate - 2006                                  SB 1940

    By Senator Clary





    4-1079-06

  1                      A bill to be entitled

  2         An act relating to real property improvements;

  3         amending s. 95.11, F.S.; decreasing the period

  4         within which actions based upon certain

  5         improvements to real property may be filed;

  6         amending s. 718.203, F.S.; clarifying

  7         provisions related to warranties of fitness on

  8         work or materials in condominiums which are

  9         supplied by contractors; establishing

10         requirements for the designation of an

11         improvement as a condominium before certain

12         warranties apply; amending s. 718.618, F.S.;

13         providing for the applicability of certain

14         provisions related to the conversion of

15         properties to condominium ownership; providing

16         for the applicability of specified changes made

17         by the act to limitations on actions under s.

18         95.11, F.S.; providing an effective date.

19  

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

21  

22         Section 1.  Paragraph (c) of subsection (3) of section

23  95.11, Florida Statutes, is amended to read:

24         95.11  Limitations other than for the recovery of real

25  property.--Actions other than for recovery of real property

26  shall be commenced as follows:

27         (3)  WITHIN FOUR YEARS.--

28         (c)  An action founded on the design, planning, or

29  construction of an improvement to real property, with the time

30  running from the date of actual possession by the owner, the

31  date of the issuance of a certificate of occupancy, the date

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    Florida Senate - 2006                                  SB 1940
    4-1079-06




 1  of abandonment of construction if not completed, or the date

 2  of completion or termination of the contract between the

 3  professional engineer, registered architect, or licensed

 4  contractor and his or her employer, whichever date is earliest

 5  latest; except that, when the action involves a latent defect,

 6  the time runs from the time the defect is discovered or should

 7  have been discovered with the exercise of due diligence.  In

 8  any event, the action must be commenced within 10 15 years

 9  after the date of actual possession by the owner, the date of

10  the issuance of a certificate of occupancy, the date of

11  abandonment of construction if not completed, or the date of

12  completion or termination of the contract between the

13  professional engineer, registered architect, or licensed

14  contractor and his or her employer, whichever date is earliest

15  latest.

16         Section 2.  Subsections (2), (6), and (7) of section

17  718.203, Florida Statutes, are amended to read:

18         718.203  Warranties.--

19         (2)  The contractor, and all subcontractors and

20  suppliers, grant to the developer and to the purchaser of each

21  unit implied warranties of fitness as to the work performed or

22  materials supplied by them, pursuant to the work or materials

23  specifications in their respective contracts or any amendments

24  to such contracts, as follows:

25         (a)  For a period of 3 years from the date of

26  completion of construction of a building or improvement, a

27  warranty as to the roof and structural components of the

28  building or improvement and mechanical and plumbing elements

29  serving a building or an improvement, except mechanical

30  elements serving only one unit.

31  

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    Florida Senate - 2006                                  SB 1940
    4-1079-06




 1         (b)  For a period of 1 year after completion of all

 2  construction, a warranty as to all other improvements and

 3  materials.

 4  

 5  Such warranties apply only to a building or improvement that

 6  is designated as a condominium in the construction contract

 7  between the developer and the contractor or any amendments to

 8  that contract.

 9         (6)  Nothing in this section affects a condominium as

10  to which rights are established by contracts for sale of 10

11  percent or more of the units in the condominium by the

12  developer to prospective unit owners prior to July 1, 1974, or

13  as to condominium buildings on which construction has been

14  commenced prior to July 1, 1974.

15         (6)(7)  Residential condominiums may be covered by an

16  insured warranty program underwritten by a licensed insurance

17  company registered in this state, provided that such warranty

18  program meets the minimum requirements of this chapter; to the

19  degree that such warranty program does not meet the minimum

20  requirements of this chapter, such requirements shall apply.

21         Section 3.  Subsection (9) is added to s. 718.618,

22  Florida Statutes, to read:

23         718.618  Converter reserve accounts; warranties.--

24         (9)  This section applies to the conversion on an

25  existing improvement if construction of the improvement

26  started before it was designated by the developer as a

27  condominium. Section 718.203 does not apply to such a

28  conversion.

29         Section 4.  Section 95.11(3)(c), Florida Statutes, as

30  amended by this act, applies to any action commenced on or

31  after July 1, 2006, regardless of when the cause of action

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    Florida Senate - 2006                                  SB 1940
    4-1079-06




 1  accrued. However, an action that would not have been barred by

 2  that section before July 1, 2006, may be commenced before July

 3  1, 2007, but if such action is not commenced by that date and

 4  it is barred by section 95.11(3)(c), Florida Statutes, as

 5  amended by this act, it is forever barred.

 6         Section 5.  This act shall take effect July 1, 2006.

 7  

 8            *****************************************

 9                          SENATE SUMMARY

10    Revises provisions relating to certain warranties and
      limitations on actions pertaining to improvements on real
11    property. Decreases the period within which actions based
      upon improvements to real property may be filed and
12    provides for applicability of such changes. Clarifies
      certain provisions related to warranties of fitness on
13    work performed on materials supplied by contractors on
      condominiums. Provides requirements for the designation
14    of an improvement as a condominium before certain
      warranties apply. Provides for the applicability of
15    certain provisions related to the conversion of
      properties to condominium ownership.
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