Florida Senate - 2008 SB 2086

By Senator Jones

13-03340B-08 20082086__

A bill to be entitled

An act relating to condominium associations; amending

s. 718.111, F.S.; requiring that hazard insurance be

based upon the replacement cost of the property to be

insured as determined by an independent insurance

appraisal or update of a prior appraisal; requiring

that the full insurable value be determined at

specified intervals; providing a means by which an

association may provide adequate hazard insurance;

authorizing an association to consider certain

information when determining coverage amounts;

providing for coverage by developer-controlled

associations; providing that policies may include

deductibles as determined by the association's board of

directors; providing requirements and guidelines for

the establishment of such deductibles; requiring that

the amounts of deductibles be set at a meeting of the

board; providing requirements for such meeting;

requiring that an association controlled by unit owners

operating as a residential condominium use its best

efforts to obtain and maintain adequate insurance to

protect the association and property under its

supervision or control; providing that a declaration of

condominium may provide that condominium property

consisting of freestanding buildings comprised of no

more than one building in or on such unit need not be

insured by the association if the declaration requires

the unit owner to obtain adequate insurance for the

condominium property; authorizing an association to

obtain and maintain liability insurance for directors

and officers, insurance for the benefit of association

employees, and flood insurance for common elements,

association property, and units; requiring that every

hazard insurance policy issued or renewed on or after a

specified date for the purpose of protecting the

condominium provide certain coverage; requiring that

such policies contain certain provisions; providing

that such policies issued to individual unit owners do

not provide rights of subrogation against the

condominium association; providing for the insurance of

improvements or additions benefiting fewer than all

unit owners; requiring that an association require each

owner to provide evidence of a current policy of hazard

and liability insurance upon request; limiting the

frequency with which an association may make such a

request; authorizing an association to purchase

coverage on behalf of an owner under certain

circumstances; providing for the collection of the

costs of such a policy; providing responsibilities of

the unit owner and association with regard to

reconstruction work and associated costs after a

casualty loss; authorizing a multicondominium

association to operate such condominiums as a single

condominium for certain purposes by majority vote of

the members of all applicable condominiums; providing

that such election constitutes an amendment to the

declaration of all applicable condominiums; requiring

that an association maintain insurance or fidelity

bonding for all persons who control or disburse

association funds; requiring that such insurance policy

or fidelity bond cover the maximum funds in the custody

of the association or its management agent at any one

time; defining the term "persons who control or

disburse funds of the association"; authorizing an

association to amend the declaration of condominium

without regard to any requirement for approval by

mortgagees of amendments affecting insurance

requirements for the purpose of conforming the

declaration of condominium to certain coverage

requirements; providing that any portion of the

condominium property required to be insured by the

association against casualty loss which is damaged be

reconstructed, repaired, or replaced as necessary by

the association as a common expense; providing that all

hazard insurance deductibles, uninsured losses, and

other damages in excess of hazard insurance coverage

under the hazard insurance policies maintained by the

association are a common expense of the condominium;

providing exceptions; allocating responsibility for

certain costs of repair or reconstruction; authorizing

an association to opt out of certain requirements

related to such allocation of responsibility by

majority vote; providing a procedure by which a

multicondominium association that has not consolidated

its financial operations may opt out of such allocation

of responsibility; requiring that a decision to opt out

be recorded; providing that such decision takes effect

on the date on which it is recorded; authorizing the

reversal of such decision; providing a procedure for

reversal; providing that an association is not

obligated to pay for any reconstruction or repair

expenses for improvements made by an owner or the

development if an improvement benefits only the unit

for which it was installed; amending s. 718.115, F.S.;

requiring that certain expenses be designated as common

expenses; amending s. 718.116, F.S.; authorizing the

designee of a unit owner or mortgagee to request a

certificate of assessment; requiring that the fee for

preparation of such certificate be stated on the

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certificate; providing for the establishment of such

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fees; providing for payment of the fee; requiring that

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the fee be refunded if a planned sale or mortgage does

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not occur; providing that any such refund is the

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obligation of the unit owner and is collectable in the

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same manner as an assessment; amending s. 718.117,

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F.S.; prohibiting the distribution of proceeds from the

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sale of a condominium unit to a lienholder from

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exceeding a unit owner's share of the proceeds;

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creating s. 720.30851, F.S.; requiring that the

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association provide a certificate signed by an officer

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or agent of the association stating all assessments and

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other moneys owed to the association by the parcel

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owner or mortgagee with respect to the parcel within a

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specified period after the association's receipt of a

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request for an estoppel certificate by an owner or

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mortgagee; providing that any person other than a

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parcel owner who relies upon a certificate receives the

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benefits and protection thereof; providing that a

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summary proceeding may be brought to compel the

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association to comply with the requirement to provide a

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certificate; providing that the prevailing party is

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entitled to recover reasonable attorney's fees;

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requiring that the fee for preparation of such

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certificate be stated on the certificate; providing for

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the establishment of such fees; providing for payment

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of the fee; requiring that the fee be refunded if a

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planned sale or mortgage does not occur; providing that

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any such refund is the obligation of the unit owner and

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is collectable in the same manner as an assessment;

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providing an effective date.

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

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Section 1. Subsection (11) of section 718.111, Florida

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Statutes, is amended to read:

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718.111 The association.--

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(11) INSURANCE.--In order to protect the safety, health,

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and welfare of the people of the State of Florida and to ensure

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consistency in the provision of insurance coverage to

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condominiums and their unit owners, this subsection applies

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paragraphs (a), (b), and (c) are deemed to apply to every

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residential condominium in the state, regardless of the date of

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its declaration of condominium. It is the intent of the

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Legislature to encourage lower or stable insurance premiums for

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associations described in this subsection section.

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(a) Adequate hazard insurance, regardless of any

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requirement in the declaration of condominium for coverage by the

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association for full insurable value, replacement cost, or

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similar coverage, shall be based upon the replacement cost of the

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property to be insured as determined by an independent insurance

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appraisal or update of a prior appraisal. The full insurable

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value shall be determined at least once every 36 months.

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1. An association or group of associations may provide

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adequate hazard insurance through a self-insurance fund that

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complies with the requirements of ss. 624.460-624.488.

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2. The association may also provide adequate hazard

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insurance coverage individually or for a group of no fewer than

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three communities created and operating under this chapter,

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chapter 719, chapter 720, or chapter 721 by obtaining and

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maintaining for such communities insurance coverage sufficient to

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cover an amount equal to the probable maximum loss for the

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communities for a 250-year windstorm event. Such probable maximum

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loss must be determined through the use of a competent model that

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has been accepted by the Florida Commission on Hurricane Loss

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Projection Methodology. Any policy providing such coverage issued

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after July 1, 2008, must be approved by the Office of Insurance

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Regulation before such coverage is deemed adequate.

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3. When determining the adequate amount of hazard insurance

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coverage, the association may consider deductibles as determined

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by this subsection.

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(b) If an association is a developer-controlled

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association, the association shall exercise its best efforts to

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obtain and maintain insurance as described in paragraph (a).

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Failure to obtain and maintain adequate hazard insurance during

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any period of developer control constitutes a breach of fiduciary

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responsibility by the developer-appointed members of the board of

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directors of the association, unless the members can show that

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despite such failure, they have made their best efforts to

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maintain the required coverage.

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board.

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1. The deductibles shall be consistent with industry

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standards and prevailing practice for communities of similar size

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and age, and having similar construction and facilities in the

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locale where the condominium property is situated.

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2. The deductibles may be based upon available funds,

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including reserve accounts, or predetermined assessment authority

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at the time the insurance is obtained.

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3. The board shall establish the amount of deductibles

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based upon the level of available funds and predetermined

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assessment authority at a meeting of the board. Such meeting

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shall be open to all unit owners in the manner set forth in s.

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718.112(2)(e). The notice of such meeting must state the proposed

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deductible and the available funds and the assessment authority

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relied upon by the board and estimate any potential assessment

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amount against each unit, if any. The meeting described in this

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paragraph may be held in conjunction with a meeting to consider

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the proposed budget or an amendment thereto.

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(d) An association controlled by unit owners operating as a

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residential condominium shall use its best efforts to obtain and

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maintain adequate insurance to protect the association, the

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association property, the common elements, and the condominium

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property that is required to be insured by the association

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pursuant to this subsection.

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(e) The declaration of condominium as originally recorded,

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or as amended pursuant to procedures provided therein, may

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provide that condominium property consisting of freestanding

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buildings comprised of no more than one building in or on such

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unit need not be insured by the association if the declaration

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requires the unit owner to obtain adequate insurance for the

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condominium property. An association may also obtain and maintain

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liability insurance for directors and officers, insurance for the

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benefit of association employees, and flood insurance for common

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elements, association property, and units.

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(f) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, for the purpose of protecting the

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condominium shall provide primary coverage for:

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1. All portions of the condominium property as originally

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installed or replacement of like kind and quality, in accordance

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with the original plans and specifications.

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2. All alterations or additions made to the condominium

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property or association property pursuant to s. 718.113(2).

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3. The coverage shall exclude all personal property within

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the unit or limited common elements, and floor, wall, and ceiling

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coverings, electrical fixtures, appliances, water heaters, water

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filters, built-in cabinets and countertops, and window

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treatments, including curtains, drapes, blinds, hardware, and

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similar window treatment components, or replacements of any of

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the foregoing.

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(g) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, to an individual unit owner must contain a

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provision stating that the coverage afforded by such policy is

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excess coverage over the amount recoverable under any other

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policy covering the same property. Such policies must include

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special assessment coverage of no less than $2,000 per

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occurrence. An insurance policy issued to an individual unit

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owner providing such coverage does not provide rights of

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subrogation against the condominium association operating the

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condominium in which such individual's unit is located.

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1. All improvements or additions to the condominium

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property that benefit fewer than all unit owners shall be insured

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by the unit owner or owners having the use thereof, or may be

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insured by the association at the cost and expense of the unit

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owners having the use thereof.

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2. The association shall require each owner to provide

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evidence of a currently effective policy of hazard and liability

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insurance upon request, but not more than once per year. Upon the

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failure of an owner to provide a certificate of insurance issued

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by an insurer approved to write such insurance in this state

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within 30 days after the date on which a written request is

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delivered, the association may purchase a policy of insurance on

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behalf of an owner. The cost of such a policy, together with

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reconstruction costs undertaken by the association but which are

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the responsibility of the unit owner, may be collected in the

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manner provided for the collection of assessments in s. 718.116.

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3. All reconstruction work after a casualty loss shall be

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undertaken by the association except as otherwise authorized in

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this section. A unit owner may undertake reconstruction work on

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portions of the unit with the prior written consent of the board

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of administration. However, such work may be conditioned upon the

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approval of the repair methods, the qualifications of the

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proposed contractor, or the contract that is used for that

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purpose. A unit owner shall obtain all required governmental

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permits and approvals prior to commencing reconstruction.

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4. Unit owners are responsible for the cost of

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reconstruction of any portions of the condominium property for

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which the unit owner is required to carry casualty insurance, and

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any such reconstruction work undertaken by the association shall

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be chargeable to the unit owner and enforceable as an assessment

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pursuant to s. 718.116. The association must be an additional

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named insured and loss payee on all casualty insurance policies

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issued to unit owners in the condominium operated by the

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association.

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5. A multicondominium association may elect, by a majority

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vote of the collective members of the condominiums operated by

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the association, to operate such condominiums as a single

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condominium for purposes of insurance matters, including, but not

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limited to, the purchase of the hazard insurance required by this

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section and the apportionment of deductibles and damages in

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excess of coverage. The election to aggregate the treatment of

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insurance premiums, deductibles, and excess damages constitutes

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an amendment to the declaration of all condominiums operated by

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the association, and the costs of insurance shall be stated in

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the association budget. The amendments shall be recorded as

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required by s. 718.110.

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(h) The association shall maintain insurance or fidelity

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bonding of all persons who control or disburse funds of the

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association. The insurance policy or fidelity bond must cover the

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maximum funds that will be in the custody of the association or

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its management agent at any one time. As used in this paragraph,

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the term "persons who control or disburse funds of the

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association" includes, but is not limited to, those individuals

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authorized to sign checks on behalf of the association, and the

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president, secretary, and treasurer of the association. The

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association shall bear the cost of any such bonding.

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(i) The association may amend the declaration of

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condominium without regard to any requirement for approval by

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mortgagees of amendments affecting insurance requirements for the

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purpose of conforming the declaration of condominium to the

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coverage requirements of this subsection.

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(j) Any portion of the condominium property required to be

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insured by the association against casualty loss pursuant to

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paragraph (f) which is damaged by casualty shall be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense. All hazard insurance

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deductibles, uninsured losses, and other damages in excess of

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hazard insurance coverage under the hazard insurance policies

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maintained by the association are a common expense of the

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condominium, except that:

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1. A unit owner is responsible for the costs of repair or

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replacement of any portion of the condominium property not paid

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by insurance proceeds, if such damage is caused by intentional

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conduct, negligence, or failure to comply with the terms of the

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declaration or the rules of the association by a unit owner, the

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members of his or her family, unit occupants, tenants, guests, or

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invitees, without compromise of the subrogation rights of any

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insurer as set forth in paragraph (g).

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2. The provisions of subparagraph 1. regarding the

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financial responsibility of a unit owner for the costs of

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repairing or replacing other portions of the condominium property

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also applies to the costs of repair or replacement of personal

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property of other unit owners or the association, as well as

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other property, whether real or personal, which the unit owners

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are required to insure under paragraph (g).

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3. To the extent the cost of repair or reconstruction for

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which the unit owner is responsible under this paragraph is

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reimbursed to the association by insurance proceeds, and, to the

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extent the association has collected the cost of such repair or

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reconstruction from the unit owner, the association shall

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reimburse the unit owner without the waiver of any rights of

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subrogation.

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4. The association is not obligated to pay for repair or

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reconstruction or repairs of casualty losses as a common expense

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if the casualty losses were known or should have been known to a

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unit owner and were not reported to the association until after

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the insurance claim of the association for that casualty was

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settled or resolved with finality, or denied on the basis that it

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was untimely filed.

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(k) An association may, upon the approval of a majority of

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the total voting interests in the association, opt out of the

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provisions of paragraph (j) for the allocation of repair or

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reconstruction expenses and allocate repair or reconstruction

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expenses in the manner provided in the declaration as originally

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recorded or as amended. Such vote may be approved by the voting

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interests of the association without regard to any mortgagee

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consent requirements.

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(l) In a multicondominium association that has not

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consolidated its financial operations under s. 718.111(6), any

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condominium operated by the association may opt out of the

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provisions of paragraph (j) with the approval of a majority of

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the total voting interests in that condominium. Such vote may be

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approved by the voting interests without regard to any mortgagee

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consent requirements.

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(m) Any association or condominium voting to opt out of the

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guidelines for repair or reconstruction expenses as described in

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paragraph (j) must record a notice setting forth the date of the

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opt-out vote and the page of the official records book on which

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the declaration is recorded. The decision to opt out is effective

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upon the date of recording of the notice in the public records by

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the association. An association that has voted to opt out of

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paragraph (j) may reverse that decision by the same vote required

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in paragraphs (k) and (l), and notice thereof shall be recorded

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in the official records.

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(n) The association is not obligated to pay for any

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reconstruction or repair expenses due to casualty loss to any

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improvements installed by a current or former owner of the unit

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or by the developer if the improvement benefits only the unit for

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which it was installed and is not part of the standard

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improvements installed by the developer on all units as part of

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original construction, whether or not such improvement is located

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within the unit. This paragraph does not relieve any party of its

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obligations regarding recovery due under any insurance

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implemented specifically for any such improvements.

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Therefore, the Legislature requires a report to be prepared by

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the Office of Insurance Regulation of the Department of Financial

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Services for publication 18 months from the effective date of

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this act, evaluating premium increases or decreases for

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associations, unit owner premium increases or decreases,

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recommended changes to better define common areas, or any other

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information the Office of Insurance Regulation deems appropriate.

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(a) A unit-owner controlled association operating a

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residential condominium shall use its best efforts to obtain and

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maintain adequate insurance to protect the association, the

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association property, the common elements, and the condominium

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property required to be insured by the association pursuant to

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paragraph (b). If the association is developer controlled, the

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association shall exercise due diligence to obtain and maintain

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such insurance. Failure to obtain and maintain adequate insurance

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during any period of developer control shall constitute a breach

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of fiduciary responsibility by the developer-appointed members of

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the board of directors of the association, unless said members

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can show that despite such failure, they have exercised due

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diligence. The declaration of condominium as originally recorded,

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or amended pursuant to procedures provided therein, may require

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that condominium property consisting of freestanding buildings

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where there is no more than one building in or on such unit need

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not be insured by the association if the declaration requires the

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unit owner to obtain adequate insurance for the condominium

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property. An association may also obtain and maintain liability

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insurance for directors and officers, insurance for the benefit

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of association employees, and flood insurance for common

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elements, association property, and units. Adequate insurance,

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regardless of any requirement in the declaration of condominium

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for coverage by the association for "full insurable value,"

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"replacement cost," or the like, may include reasonable

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deductibles as determined by the board based upon available funds

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or predetermined assessment authority at the time that the

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insurance is obtained.

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1. Windstorm insurance coverage for a group of no fewer

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than three communities created and operating under this chapter,

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chapter 719, chapter 720, or chapter 721 may be obtained and

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maintained for the communities if the insurance coverage is

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sufficient to cover an amount equal to the probable maximum loss

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for the communities for a 250-year windstorm event. Such probable

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maximum loss must be determined through the use of a competent

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model that has been accepted by the Florida Commission on

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Hurricane Loss Projection Methodology. Such insurance coverage is

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deemed adequate windstorm insurance for the purposes of this

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section.

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2. An association or group of associations may self-insure

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against claims against the association, the association property,

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and the condominium property required to be insured by an

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association, upon compliance with the applicable provisions of

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ss. 624.460-624.488, which shall be considered adequate insurance

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for the purposes of this section. A copy of each policy of

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insurance in effect shall be made available for inspection by

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unit owners at reasonable times.

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(b) Every hazard insurance policy issued or renewed on or

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after January 1, 2004, to protect the condominium shall provide

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primary coverage for:

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1. All portions of the condominium property located outside

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the units;

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2. The condominium property located inside the units as

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such property was initially installed, or replacements thereof of

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like kind and quality and in accordance with the original plans

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and specifications or, if the original plans and specifications

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are not available, as they existed at the time the unit was

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initially conveyed; and

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3. All portions of the condominium property for which the

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declaration of condominium requires coverage by the association.

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Anything to the contrary notwithstanding, the terms "condominium

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property," "building," "improvements," "insurable improvements,"

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"common elements," "association property," or any other term

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found in the declaration of condominium which defines the scope

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of property or casualty insurance that a condominium association

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must obtain shall exclude all floor, wall, and ceiling coverings,

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electrical fixtures, appliances, air conditioner or heating

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equipment, water heaters, water filters, built-in cabinets and

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countertops, and window treatments, including curtains, drapes,

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blinds, hardware, and similar window treatment components, or

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replacements of any of the foregoing which are located within the

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boundaries of a unit and serve only one unit and all air

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conditioning compressors that service only an individual unit,

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whether or not located within the unit boundaries. The foregoing

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is intended to establish the property or casualty insuring

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responsibilities of the association and those of the individual

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unit owner and do not serve to broaden or extend the perils of

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coverage afforded by any insurance contract provided to the

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individual unit owner. Beginning January 1, 2004, the association

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shall have the authority to amend the declaration of condominium,

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without regard to any requirement for mortgagee approval of

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amendments affecting insurance requirements, to conform the

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declaration of condominium to the coverage requirements of this

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section.

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after January 1, 2004, to an individual unit owner shall provide

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that the coverage afforded by such policy is excess over the

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amount recoverable under any other policy covering the same

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property. Each insurance policy issued to an individual unit

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owner providing such coverage shall be without rights of

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subrogation against the condominium association that operates the

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condominium in which such unit owner's unit is located. All real

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or personal property located within the boundaries of the unit

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owner's unit which is excluded from the coverage to be provided

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by the association as set forth in paragraph (b) shall be insured

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by the individual unit owner.

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(d) The association shall obtain and maintain adequate

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insurance or fidelity bonding of all persons who control or

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disburse funds of the association. The insurance policy or

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fidelity bond must cover the maximum funds that will be in the

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custody of the association or its management agent at any one

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time. As used in this paragraph, the term "persons who control or

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disburse funds of the association" includes, but is not limited

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to, those individuals authorized to sign checks and the

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president, secretary, and treasurer of the association. The

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association shall bear the cost of bonding.

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Section 2. Paragraph (a) of subsection (1) of section

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718.115, Florida Statutes, is amended to read:

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718.115 Common expenses and common surplus.--

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(1)(a) Common expenses include the expenses of the

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operation, maintenance, repair, replacement, or protection of the

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common elements and association property, costs of carrying out

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the powers and duties of the association, and any other expense,

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whether or not included in the foregoing, designated as common

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expense by this chapter, the declaration, the documents creating

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the association, or the bylaws. Common expenses also include

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reasonable transportation services, insurance for directors and

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officers, road maintenance and operation expenses, in-house

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communications, and security services, which are reasonably

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related to the general benefit of the unit owners even if such

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expenses do not attach to the common elements or property of the

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condominium. However, such common expenses must either have been

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services or items provided on or after the date control of the

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association is transferred from the developer to the unit owners

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or must be services or items provided for in the condominium

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documents or bylaws. Unless the manner of payment or allocation

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of expenses is otherwise addressed in the declaration of

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condominium, the expenses of any items or services required by

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any federal, state, or local governmental entity to be installed,

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maintained, or supplied to the condominium property by the

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association, including, but not limited to, fire safety equipment

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or water and sewer service where a master meter serves the

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condominium, shall be common expenses whether or not such items

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or services are specifically identified as common expenses in the

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declaration of condominium, articles of incorporation, or bylaws

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of the association.

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Section 3. Subsection (8) of section 718.116, Florida

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Statutes, is amended to read:

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718.116 Assessments; liability; lien and priority;

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interest; collection.--

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(8) Within 15 days after receiving a written request

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therefor from a unit owner or his or her designee purchaser, or

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a unit mortgagee or his or her designee, the association shall

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provide a certificate signed by an officer or agent of the

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association stating all assessments and other moneys owed to the

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association by the unit owner with respect to the condominium

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parcel.

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(a) Any person other than the owner who relies upon such

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certificate shall be protected thereby.

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(b) A summary proceeding pursuant to s. 51.011 may be

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brought to compel compliance with this subsection, and in any

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such action the prevailing party is entitled to recover

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reasonable attorney's fees.

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contained in s. 718.112(2)(i), the association or its authorized

537

agent may charge a reasonable fee for the preparation of the

538

certificate. The amount of the fee must be included on the

539

certificate.

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(d) The authority to charge a fee under this section shall

541

be established by written resolution adopted by the board or

542

provided by written management, bookkeeping, or maintenance

543

contract. The fee is payable upon the preparation of the

544

certificate, and if the certificate is requested in conjunction

545

with the sale or mortgage of a unit and the closing does not

546

occur, the fee shall be refunded promptly upon written notice

547

from the person requesting the certificate stating that the sale

548

or mortgage did not occur. Any such refund is the obligation of

549

the unit owner and is collectable in the same manner as an

550

assessment as provided in this section.

551

Section 4. Paragraph (c) of subsection (17) of section

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718.117, Florida Statutes, is amended to read:

553

718.117 Termination of condominium.--

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(17) DISTRIBUTION.--

555

556

association property and any remaining condominium property or

557

association property, common surplus, and other assets shall be

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distributed in the following priority:

559

1. To pay the reasonable termination trustee's fees and

560

costs and accounting fees and costs.

561

2. To lienholders of liens recorded prior to the recording

562

of the declaration.

563

3. To purchase-money lienholders on units to the extent

564

necessary to satisfy their liens; however, the distribution may

565

not exceed a unit owner's share of the proceeds.

566

4. To lienholders of liens of the association which have

567

been consented to under s. 718.121(1).

568

5. To creditors of the association, as their interests

569

appear.

570

6. To unit owners, the proceeds of any sale of condominium

571

property subject to satisfaction of liens on each unit in their

572

order of priority, in shares specified in the plan of

573

termination, unless objected to by a unit owner or lienor as

574

provided in paragraph (b).

575

7. To unit owners, the remaining condominium property,

576

subject to satisfaction of liens on each unit in their order of

577

priority, in shares specified in the plan of termination, unless

578

objected to by a unit owner or a lienor as provided in paragraph

579

(b).

580

8. To unit owners, the proceeds of any sale of association

581

property, the remaining association property, common surplus, and

582

other assets of the association, subject to satisfaction of liens

583

on each unit in their order of priority, in shares specified in

584

the plan of termination, unless objected to by a unit owner or a

585

lienor as provided in paragraph (b).

586

Section 5. Section 720.30851, Florida Statutes, is created

587

to read:

588

720.30851 Estoppel certificates.--Within 15 days after the

589

date on which a request for an estoppel certificate is received

590

from a parcel owner or mortgagee, or his or her designee, the

591

association shall provide a certificate signed by an officer or

592

agent of the association stating all assessments and other moneys

593

owed to the association by the parcel owner or mortgagee with

594

respect to the parcel. An association may charge a fee for the

595

preparation of such certificate, and the amount of such fee must

596

be stated on the certificate.

597

(1) Any person other than a parcel owner who relies upon a

598

certificate receives the benefits and protection thereof.

599

(2) A summary proceeding pursuant to s. 51.011 may be

600

brought to compel compliance with this section, and the

601

prevailing party is entitled to recover reasonable attorney's

602

fees.

603

(3) The authority to charge a fee for a certificate

604

required by this section shall be established by written

605

resolution adopted by the board or provided by written

606

management, bookkeeping, or maintenance contract. The fee is

607

payable upon the preparation of the certificate, and, if the

608

certificate is requested in conjunction with the sale or mortgage

609

of a unit and the closing does not occur, the fee shall be

610

refunded promptly upon written notice from the person requesting

611

the certificate stating that the sale or mortgage did not occur.

612

Any such refund is the obligation of the unit owner and is

613

collectible in the same manner as an assessment as provided in

614

this section.

615

Section 6. This act shall take effect July 1, 2008.

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