Florida Senate - 2023 COMMITTEE AMENDMENT Bill No. SB 154 Ì4751389Î475138 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/22/2023 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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