Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 154
       
       
       
       
       
       
                                Ì4751389Î475138                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/22/2023           .                                
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       The Committee on Regulated Industries (Bradley) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 770 - 857
    4  and insert:
    5         Section 9. Paragraph (b) of subsection (1) of section
    6  718.503, Florida Statutes, is amended, and paragraph (d) is
    7  added to that subsection and paragraph (e) is added to
    8  subsection (2) of that section, to read:
    9         718.503 Developer disclosure prior to sale; nondeveloper
   10  unit owner disclosure prior to sale; voidability.—
   11         (1) DEVELOPER DISCLOSURE.—
   12         (b) Copies of documents to be furnished to prospective
   13  buyer or lessee.—Until such time as the developer has furnished
   14  the documents listed below to a person who has entered into a
   15  contract to purchase a residential unit or lease it for more
   16  than 5 years, the contract may be voided by that person,
   17  entitling the person to a refund of any deposit together with
   18  interest thereon as provided in s. 718.202. The contract may be
   19  terminated by written notice from the proposed buyer or lessee
   20  delivered to the developer within 15 days after the buyer or
   21  lessee receives all of the documents required by this section.
   22  The developer may not close for 15 days after the execution of
   23  the agreement and delivery of the documents to the buyer as
   24  evidenced by a signed receipt for documents unless the buyer is
   25  informed in the 15-day voidability period and agrees to close
   26  before the expiration of the 15 days. The developer shall retain
   27  in his or her records a separate agreement signed by the buyer
   28  as proof of the buyer’s agreement to close before the expiration
   29  of the voidability period. The developer must retain such proof
   30  for a period of 5 years after the date of the closing of the
   31  transaction. The documents to be delivered to the prospective
   32  buyer are the prospectus or disclosure statement with all
   33  exhibits, if the development is subject to s. 718.504, or, if
   34  not, then copies of the following which are applicable:
   35         1. The question and answer sheet described in s. 718.504,
   36  and declaration of condominium, or the proposed declaration if
   37  the declaration has not been recorded, which shall include the
   38  certificate of a surveyor approximately representing the
   39  locations required by s. 718.104.
   40         2. The documents creating the association.
   41         3. The bylaws.
   42         4. The ground lease or other underlying lease of the
   43  condominium.
   44         5. The management contract, maintenance contract, and other
   45  contracts for management of the association and operation of the
   46  condominium and facilities used by the unit owners having a
   47  service term in excess of 1 year, and any management contracts
   48  that are renewable.
   49         6. The estimated operating budget for the condominium and a
   50  schedule of expenses for each type of unit, including fees
   51  assessed pursuant to s. 718.113(1) for the maintenance of
   52  limited common elements where such costs are shared only by
   53  those entitled to use the limited common elements.
   54         7. The lease of recreational and other facilities that will
   55  be used only by unit owners of the subject condominium.
   56         8. The lease of recreational and other common facilities
   57  that will be used by unit owners in common with unit owners of
   58  other condominiums.
   59         9. The form of unit lease if the offer is of a leasehold.
   60         10. Any declaration of servitude of properties serving the
   61  condominium but not owned by unit owners or leased to them or
   62  the association.
   63         11. If the development is to be built in phases or if the
   64  association is to manage more than one condominium, a
   65  description of the plan of phase development or the arrangements
   66  for the association to manage two or more condominiums.
   67         12. If the condominium is a conversion of existing
   68  improvements, the statements and disclosure required by s.
   69  718.616.
   70         13. The form of agreement for sale or lease of units.
   71         14. A copy of the floor plan of the unit and the plot plan
   72  showing the location of the residential buildings and the
   73  recreation and other common areas.
   74         15. A copy of all covenants and restrictions that will
   75  affect the use of the property and are not contained in the
   76  foregoing.
   77         16. If the developer is required by state or local
   78  authorities to obtain acceptance or approval of any dock or
   79  marina facilities intended to serve the condominium, a copy of
   80  any such acceptance or approval acquired by the time of filing
   81  with the division under s. 718.502(1), or a statement that such
   82  acceptance or approval has not been acquired or received.
   83         17. Evidence demonstrating that the developer has an
   84  ownership, leasehold, or contractual interest in the land upon
   85  which the condominium is to be developed.
   86         18. A copy of the inspector-prepared summary of the
   87  milestone inspection report as described in ss. 553.899 and
   88  718.301(4)(p) or a statement in conspicuous type indicating that
   89  the association has not completed the milestone inspection
   90  described in ss. 553.899 and 718.301(4)(p) or that the
   91  association is not required to perform a milestone inspection,
   92  as applicable.
   93         19. A copy of the association’s most recent structural
   94  integrity reserve study or a statement in conspicuous type
   95  indicating that the association has not completed a structural
   96  integrity reserve study or that the association is not required
   97  to perform a structural integrity reserve study, as applicable.
   98         (d)Milestone inspection or structural integrity reserve
   99  study.If the association is required to have completed a
  100  milestone inspection as described in ss. 553.899 and
  101  718.301(4)(p) or a structural integrity reserve study, and the
  102  association has failed to complete the milestone inspection or
  103  the structural integrity reserve study, each contract entered
  104  into after December 31, 2024, for the sale of a residential unit
  105  shall contain in conspicuous type a statement indicating that
  106  the association is required to have a milestone inspection or a
  107  structural integrity reserve study and has failed to complete
  108  such inspection or study, as appropriate. If the association is
  109  not required to have a milestone inspection as described in ss.
  110  553.899 and 718.301(4)(p) or a structural integrity reserve
  111  study, each contract entered into after December 31, 2024, for
  112  the sale of a residential unit shall contain in conspicuous type
  113  a statement indicating that the association is not required to
  114  have a milestone inspection or a structural integrity reserve
  115  study, as appropriate. If the association is required to have
  116  completed a milestone inspection as described in ss. 553.899 and
  117  718.301(4)(p) or a structural integrity reserve study, each
  118  contract entered into after December 31, 2024, for the sale of a
  119  residential unit shall contain in conspicuous type:
  120         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  121  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  122  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  123  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  124  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  125  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  126  718.112(2)(g), FLORIDA STATUTES, MORE THAN 15 DAYS, EXCLUDING
  127  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  128  THIS CONTRACT; and
  129         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  130  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  131  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  132  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  133  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  134  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  135  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  136  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  137  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  138  718.112(2)(g), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
  139  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
  140  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS,
  141  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
  142  BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
  143  OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS
  144  553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE
  145  ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY
  146  DESCRIBED IN SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA
  147  STATUTES, IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS
  148  AGREEMENT SHALL TERMINATE AT CLOSING.
  149  
  150  A contract that does not conform to the requirements of this
  151  paragraph is voidable at the option of the purchaser prior to
  152  closing.
  153         (2) NONDEVELOPER DISCLOSURE.—
  154         (e) If the association is required to have completed a
  155  milestone inspection as described in ss. 553.899 and
  156  718.301(4)(p) or a structural integrity reserve study, and the
  157  association has failed to complete the milestone inspection or
  158  the structural integrity reserve study, each contract entered
  159  into after December 31, 2024, for the sale of a residential unit
  160  shall contain in conspicuous type a statement indicating that
  161  the association is required to have a milestone inspection or a
  162  structural integrity reserve study and has failed to complete
  163  such inspection or study, as appropriate. If the association is
  164  not required to have a milestone inspection as described in ss.
  165  553.899 and 718.301(4)(p) or a structural integrity reserve
  166  study, each contract entered into after December 31, 2024, for
  167  the sale of a residential unit shall contain in conspicuous type
  168  a statement indicating that the association is not required to
  169  have a milestone inspection or a structural integrity reserve
  170  study, as appropriate. If the association is required to have
  171  completed a milestone inspection as described in ss. 553.899 and
  172  718.301(4)(p) or a structural integrity reserve study, each
  173  contract entered into after December 31, 2024, for the resale of
  174  a residential unit shall contain in conspicuous type:
  175         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  176  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  177  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  178  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  179  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  180  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  181  718.112(2)(g), FLORIDA STATUTES, MORE THAN 3 DAYS, EXCLUDING
  182  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  183  THIS CONTRACT; and
  184  
  185  ================= T I T L E  A M E N D M E N T ================
  186  And the title is amended as follows:
  187         Delete line 55
  188  and insert:
  189         property; amending s. 718.503, F.S.; revising the
  190         documents developers are required to provide to
  191         prospective buyers or lessees; requiring