Bill Text: FL S1706 | 2024 | Regular Session | Comm Sub


Bill Title: Condominiums Within a Portion of a Building or Within a Multiple Parcel Building

Spectrum: Bipartisan Bill

Status: (Failed) 2024-03-08 - Died in Rules [S1706 Detail]

Download: Florida-2024-S1706-Comm_Sub.html
       Florida Senate - 2024                             CS for SB 1706
       
       
        
       By the Committee on Regulated Industries; and Senator Yarborough
       
       
       
       
       
       580-02889-24                                          20241706c1
    1                        A bill to be entitled                      
    2         An act relating to condominiums within a portion of a
    3         building or within a multiple parcel building;
    4         amending s. 718.103, F.S.; revising the definition of
    5         the term “condominium property”; amending s. 718.202,
    6         F.S.; authorizing the Director of the Division of
    7         Florida Condominiums, Timeshares, and Mobile Homes to
    8         accept certain assurances in lieu of a specified
    9         percentage of the sale price; authorizing a developer
   10         to deliver a surety bond or an irrevocable letter of
   11         credit in an amount equivalent to a certain percentage
   12         of the sale price; conforming provisions to changes
   13         made by the act; making technical changes; creating s.
   14         718.407, F.S.; providing that a condominium may be
   15         created within a portion of a building or within a
   16         multiple parcel building; providing for the common
   17         elements of such condominium; providing requirements
   18         for the declaration of condominium and other recorded
   19         instruments; authorizing an association to inspect and
   20         copy certain books and records and to receive an
   21         annual budget; requiring that a specified statement be
   22         included in a contract for the sale of a unit of the
   23         condominium; requiring a seller of a unit of the
   24         condominium to provide a specified disclosure summary
   25         to a purchaser; providing that a multiple parcel
   26         building is not a subdivision of land if the land is
   27         not subdivided; amending ss. 718.503 and 718.504,
   28         F.S.; requiring certain persons to provide specified
   29         disclosures to purchasers under certain circumstances;
   30         making technical changes; providing for retroactive
   31         applicability; providing an effective date.
   32          
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Subsection (14) of section 718.103, Florida
   36  Statutes, is amended to read:
   37         718.103 Definitions.—As used in this chapter, the term:
   38         (14) “Condominium property” means the lands, leaseholds,
   39  improvements, any and personal property, and all easements and
   40  rights appurtenant thereto, regardless of whether contiguous,
   41  which that are subjected to condominium ownership, whether or
   42  not contiguous, and all improvements thereon and all easements
   43  and rights appurtenant thereto intended for use in connection
   44  with the condominium.
   45         Section 2. Subsections (1) and (3) of section 718.202,
   46  Florida Statutes, are amended to read:
   47         718.202 Sales or reservation deposits prior to closing.—
   48         (1) If a developer contracts to sell a condominium parcel
   49  and the construction, furnishing, and landscaping of the
   50  property submitted or proposed to be submitted to condominium
   51  ownership has not been substantially completed in accordance
   52  with the plans and specifications and representations made by
   53  the developer in the disclosures required by this chapter, the
   54  developer shall pay into an escrow account all payments up to 10
   55  percent of the sale price received by the developer from the
   56  buyer towards the sale price. The escrow agent shall give to the
   57  purchaser a receipt for the deposit, upon request. In lieu of
   58  the foregoing concerning residential condominiums, the division
   59  director has the discretion to accept other assurances,
   60  including, but not limited to, a surety bond or an irrevocable
   61  letter of credit in an amount equal to the escrow requirements
   62  of this section. With respect to nonresidential condominiums,
   63  the developer shall have the option of delivering to the escrow
   64  agent a surety bond or an irrevocable letter of credit in an
   65  amount equivalent to the aggregate of some or all of all
   66  payments up to 10 percent of the sale price received by the
   67  developer from all buyers towards the sale price, in all cases
   68  the aggregate of initial 10 percent deposits monies being
   69  released secured by a surety bond or irrevocable letter of
   70  credit in an equivalent amount. Default determinations and
   71  refund of deposits shall be governed by the escrow release
   72  provision of this subsection. Funds shall be released from
   73  escrow as follows:
   74         (a) If a buyer properly terminates the contract pursuant to
   75  its terms or pursuant to this chapter, the funds shall be paid
   76  to the buyer together with any interest earned.
   77         (b) If the buyer defaults in the performance of his or her
   78  obligations under the contract of purchase and sale, the funds
   79  shall be paid to the developer together with any interest
   80  earned.
   81         (c) If the contract does not provide for the payment of any
   82  interest earned on the escrowed funds, interest shall be paid to
   83  the developer at the closing of the transaction.
   84         (d) If the funds of a buyer have not been previously
   85  disbursed in accordance with the provisions of this subsection,
   86  they may be disbursed to the developer by the escrow agent at
   87  the closing of the transaction, unless prior to the disbursement
   88  the escrow agent receives from the buyer written notice of a
   89  dispute between the buyer and developer.
   90         (3) If the contract for sale of the condominium unit so
   91  provides, the developer may withdraw escrow funds in excess of
   92  10 percent of the purchase price from the special account
   93  required by subsection (2) when the construction of improvements
   94  has begun. He or she may use the funds for the actual costs
   95  incurred by the developer in the construction and development of
   96  the condominium property in which the unit to be sold is located
   97  or the easements and rights appurtenant thereto. For purposes of
   98  this subsection, the term “actual costs” includes, but is not
   99  limited to, expenditures for demolition, site clearing, permit
  100  fees, impact fees, and utility reservation fees, as well as
  101  architectural, engineering, and surveying fees that directly
  102  relate to construction and development of the condominium
  103  property or the easements and rights appurtenant thereto.
  104  However, no part of these funds may be used for salaries,
  105  commissions, or expenses of salespersons; for advertising,
  106  marketing, or promotional purposes; or for loan fees and costs,
  107  principal and interest on loans, attorney fees, accounting fees,
  108  or insurance costs. A contract that which permits use of the
  109  advance payments for these purposes must shall include the
  110  following legend conspicuously printed or stamped in boldfaced
  111  type on the first page of the contract and immediately above the
  112  place for the signature of the buyer: ANY PAYMENT IN EXCESS OF
  113  10 PERCENT OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO
  114  CLOSING PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION
  115  PURPOSES BY THE DEVELOPER.
  116         Section 3. Section 718.407, Florida Statutes, is created to
  117  read:
  118         718.407Condominiums created within a portion of a building
  119  or within a multiple parcel building.—
  120         (1)Notwithstanding s. 718.103(12) or s. 718.108(1), a
  121  condominium may be created within a portion of a building or
  122  within a multiple parcel building, as defined in s. 193.0237(1),
  123  as provided in this section.
  124         (2)Notwithstanding s. 718.103(12) or s. 718.108(1), the
  125  common elements of a condominium created within a portion of a
  126  building or a multiple parcel building are only those portions
  127  of the building submitted to the condominium form of ownership,
  128  excluding the units of such condominium.
  129         (3)The declaration of condominium that creates a
  130  condominium within a portion of a building or within a multiple
  131  parcel building, the recorded instrument that creates the
  132  multiple parcel building, or any other recorded instrument
  133  applicable under this section must specify all of the following:
  134         (a)The portions of the building which are included in the
  135  condominium and the portions of the building which are excluded.
  136         (b)The party responsible for maintaining and operating
  137  those portions of the building which are shared facilities, and
  138  which may include, among other things, the roof, the exterior of
  139  the building, windows, balconies, elevators, the building lobby,
  140  corridors, recreational amenities, and utilities.
  141         (c)1.The manner in which the expenses for the maintenance
  142  and operation of the shared facilities will be apportioned. An
  143  owner of a portion of a building which is not submitted to
  144  condominium form of ownership, or the condominium association,
  145  as applicable to the portion of the building submitted to
  146  condominium form of ownership, must approve any increase in the
  147  apportionment of expenses to such portion of the building. The
  148  apportionment of the expenses for the maintenance and operation
  149  of the shared facilities may be based on any of the following
  150  criteria or any combination thereof:
  151         a.The area or volume of each portion of the building in
  152  relation to the total area or volume of the entire building,
  153  exclusive of the shared facilities.
  154         b.The initial estimated market value of each portion of
  155  the building in comparison to the total initial estimated market
  156  value of the entire building.
  157         c.The extent to which the owners are permitted to use
  158  various shared facilities.
  159         2.This paragraph does not preclude an alternative
  160  apportionment of expenses provided that the apportionment is
  161  stated in the declaration of condominium that creates a
  162  condominium within a portion of a building or within a multiple
  163  parcel building, the recorded instrument that creates the
  164  multiple parcel building, or any other recorded instrument
  165  applicable under this section.
  166         (d)The party responsible for collecting the shared
  167  expenses.
  168         (e)The rights and remedies that are available to enforce
  169  payment of the shared expenses.
  170         (4)The association of a condominium subject to this
  171  section has the right to inspect and copy the books and records
  172  upon which the costs for maintaining and operating the shared
  173  facilities are based and to receive an annual budget with
  174  respect to such costs.
  175         (5)Each contract for the sale of a unit in a condominium
  176  subject to this section must contain in conspicuous type a
  177  clause that substantially states:
  178  
  179         THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
  180         CREATED WITHIN A PORTION OF A BUILDING. THE COMMON
  181         ELEMENTS OF THE CONDOMINIUM CONSIST ONLY OF THE
  182         PORTIONS OF THE BUILDING SUBMITTED TO THE CONDOMINIUM
  183         FORM OF OWNERSHIP, EXCLUDING THE UNITS. THE
  184         CONDOMINIUM MAY HAVE MINIMAL COMMON ELEMENTS. PORTIONS
  185         OF THE BUILDING THAT ARE NOT INCLUDED IN THE
  186         CONDOMINIUM ARE GOVERNED BY A SEPARATE RECORDED
  187         INSTRUMENT THAT CONTAINS IMPORTANT PROVISIONS AND
  188         RIGHTS.
  189  
  190  A contract that does not conform to the requirements of
  191  this subsection is voidable at the option of the purchaser
  192  prior to closing.
  193         (6)The seller of a unit in a condominium subject to this
  194  section must provide a separate disclosure summary that must be
  195  signed by the purchaser. The disclosure summary must contain the
  196  following statements in conspicuous type:
  197  
  198                         DISCLOSURE SUMMARY                        
  199         THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
  200         CREATED WITHIN A PORTION OF A BUILDING OR WITHIN A
  201         MULTIPLE PARCEL BUILDING. PORTIONS OF THE BUILDING
  202         THAT ARE NOT INCLUDED IN THE CONDOMINIUM ARE (OR WILL
  203         BE) GOVERNED BY A SEPARATE RECORDED INSTRUMENT THAT
  204         CONTAINS IMPORTANT PROVISIONS AND RIGHTS. THE
  205         ASSOCIATION AND UNIT OWNERS MAY HAVE LIMITED OR NO
  206         CONTROL OVER THE MAINTENANCE, OPERATION, AND COSTS OF
  207         THE PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO
  208         THE CONDOMINIUM FORM OF OWNERSHIP, BUT ARE RESPONSIBLE
  209         FOR PAYMENT OF THEIR SHARE OF EXPENSES. SUCH
  210         INSTRUMENT IS OR WILL BE RECORDED IN THE PUBLIC
  211         RECORDS. THE ALLOCATION BETWEEN THE OWNERS OF THE
  212         COSTS TO MAINTAIN AND OPERATE THE BUILDING ARE SET
  213         FORTH IN THE DECLARATION OF CONDOMINIUM OR OTHER
  214         RECORDED INSTRUMENT. THE OWNER OF ANOTHER PORTION OF
  215         THE BUILDING CONTROLS THE MAINTENANCE AND OPERATION OF
  216         THE PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO
  217         THE CONDOMINIUM FORM OF OWNERSHIP AND DETERMINES THE
  218         BUDGET FOR SUCH OPERATION AND MAINTENANCE.
  219  
  220         (7)The creation of a multiple parcel building is not a
  221  subdivision of the land upon which such building is situated
  222  provided the land itself is not subdivided.
  223         Section 4. Paragraph (a) of subsection (2) and subsection
  224  (3) of section 718.503, Florida Statutes, are amended to read:
  225         718.503 Developer disclosure prior to sale; nondeveloper
  226  unit owner disclosure prior to sale; voidability.—
  227         (2) NONDEVELOPER DISCLOSURE.—
  228         (a) Each unit owner who is not a developer as defined by
  229  this chapter must comply with this subsection before the sale of
  230  his or her unit. Each prospective purchaser who has entered into
  231  a contract for the purchase of a condominium unit is entitled,
  232  at the seller’s expense, to a current copy of all of the
  233  following:
  234         1. The declaration of condominium.
  235         2. Articles of incorporation of the association.
  236         3. Bylaws and rules of the association.
  237         4. An annual financial statement and an annual budget of
  238  the condominium association Financial information required by s.
  239  718.111.
  240         5. A copy of the inspector-prepared summary of the
  241  milestone inspection report as described in s. 553.899, if
  242  applicable.
  243         6. The association’s most recent structural integrity
  244  reserve study or a statement that the association has not
  245  completed a structural integrity reserve study.
  246         7. A copy of the inspection report described in s.
  247  718.301(4)(p) and (q) for a turnover inspection performed on or
  248  after July 1, 2023.
  249         8. The document entitled “Frequently Asked Questions and
  250  Answers” required by s. 718.504.
  251         (3) OTHER DISCLOSURES DISCLOSURE.—
  252         (a) If residential condominium parcels are offered for sale
  253  or lease prior to completion of construction of the units and of
  254  improvements to the common elements, or prior to completion of
  255  remodeling of previously occupied buildings, the developer must
  256  shall make available to each prospective purchaser or lessee,
  257  for his or her inspection at a place convenient to the site, a
  258  copy of the complete plans and specifications for the
  259  construction or remodeling of the unit offered to him or her and
  260  of the improvements to the common elements appurtenant to the
  261  unit.
  262         (b) Sales brochures, if any, must shall be provided to each
  263  purchaser, and the following caveat in conspicuous type must
  264  shall be placed on the inside front cover or on the first page
  265  containing text material of the sales brochure, or otherwise
  266  conspicuously displayed: ORAL REPRESENTATIONS CANNOT BE RELIED
  267  UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR
  268  CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO
  269  THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO
  270  BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. If timeshare
  271  estates have been or may be created with respect to any unit in
  272  the condominium, the sales brochure must shall contain the
  273  following statement in conspicuous type: UNITS IN THIS
  274  CONDOMINIUM ARE SUBJECT TO TIMESHARE ESTATES.
  275         (c)If a unit is located within a condominium that is
  276  created within a portion of a building or within a multiple
  277  parcel building, the developer or nondeveloper unit owner must
  278  provide the disclosures required by s. 718.407(5) and (6).
  279         Section 5. Section 718.504, Florida Statutes, is amended to
  280  read:
  281         718.504 Prospectus or offering circular.—Every developer of
  282  a residential condominium which contains more than 20
  283  residential units, or which is part of a group of residential
  284  condominiums which will be served by property to be used in
  285  common by unit owners of more than 20 residential units, shall
  286  prepare a prospectus or offering circular and file it with the
  287  Division of Florida Condominiums, Timeshares, and Mobile Homes
  288  prior to entering into an enforceable contract of purchase and
  289  sale of any unit or lease of a unit for more than 5 years and
  290  shall furnish a copy of the prospectus or offering circular to
  291  each buyer. In addition to the prospectus or offering circular,
  292  each buyer shall be furnished a separate page entitled
  293  “Frequently Asked Questions and Answers,” which shall be in
  294  accordance with a format approved by the division and a copy of
  295  the financial information required by s. 718.111. This page
  296  shall, in readable language, inform prospective purchasers
  297  regarding their voting rights and unit use restrictions,
  298  including restrictions on the leasing of a unit; shall indicate
  299  whether and in what amount the unit owners or the association is
  300  obligated to pay rent or land use fees for recreational or other
  301  commonly used facilities; shall contain a statement identifying
  302  that amount of assessment which, pursuant to the budget, would
  303  be levied upon each unit type, exclusive of any special
  304  assessments, and which shall further identify the basis upon
  305  which assessments are levied, whether monthly, quarterly, or
  306  otherwise; shall state and identify any court cases in which the
  307  association is currently a party of record in which the
  308  association may face liability in excess of $100,000; shall
  309  state whether the condominium is created within a portion of a
  310  building or a multiple parcel building; and which shall further
  311  state whether membership in a recreational facilities
  312  association is mandatory, and if so, shall identify the fees
  313  currently charged per unit type. The division shall by rule
  314  require such other disclosure as in its judgment will assist
  315  prospective purchasers. The prospectus or offering circular may
  316  include more than one condominium, although not all such units
  317  are being offered for sale as of the date of the prospectus or
  318  offering circular. The prospectus or offering circular must
  319  contain the following information:
  320         (1) The front cover or the first page must contain only:
  321         (a) The name of the condominium.
  322         (b) The following statements in conspicuous type:
  323  
  324         1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS
  325         IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A
  326         CONDOMINIUM UNIT.
  327         2. THE STATEMENTS CONTAINED HEREIN ARE ONLY
  328         SUMMARY IN NATURE. A PROSPECTIVE PURCHASER SHOULD
  329         REFER TO ALL REFERENCES, ALL EXHIBITS HERETO, THE
  330         CONTRACT DOCUMENTS, AND SALES MATERIALS.
  331         3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS
  332         CORRECTLY STATING THE REPRESENTATIONS OF THE
  333         DEVELOPER. REFER TO THIS PROSPECTUS (OFFERING
  334         CIRCULAR) AND ITS EXHIBITS FOR CORRECT
  335         REPRESENTATIONS.
  336  
  337         (2) Summary: The next page must contain all statements
  338  required to be in conspicuous type in the prospectus or offering
  339  circular.
  340         (3) A separate index of the contents and exhibits of the
  341  prospectus.
  342         (4) Beginning on the first page of the text (not including
  343  the summary and index), a description of the condominium,
  344  including, but not limited to, the following information:
  345         (a) Its name and location.
  346         (b) A description of the condominium property, including,
  347  without limitation:
  348         1. The number of buildings, the number of units in each
  349  building, the number of bathrooms and bedrooms in each unit, and
  350  the total number of units, if the condominium is not a phase
  351  condominium, or the maximum number of buildings that may be
  352  contained within the condominium, the minimum and maximum
  353  numbers of units in each building, the minimum and maximum
  354  numbers of bathrooms and bedrooms that may be contained in each
  355  unit, and the maximum number of units that may be contained
  356  within the condominium, if the condominium is a phase
  357  condominium.
  358         2. The page in the condominium documents where a copy of
  359  the plot plan and survey of the condominium is located.
  360         3. The estimated latest date of completion of constructing,
  361  finishing, and equipping. In lieu of a date, the description
  362  shall include a statement that the estimated date of completion
  363  of the condominium is in the purchase agreement and a reference
  364  to the article or paragraph containing that information.
  365         (c) The maximum number of units that will use facilities in
  366  common with the condominium. If the maximum number of units will
  367  vary, a description of the basis for variation and the minimum
  368  amount of dollars per unit to be spent for additional
  369  recreational facilities or enlargement of such facilities. If
  370  the addition or enlargement of facilities will result in a
  371  material increase of a unit owner’s maintenance expense or
  372  rental expense, if any, the maximum increase and limitations
  373  thereon shall be stated.
  374         (5)(a) A statement in conspicuous type describing whether
  375  the condominium is created and being sold as fee simple
  376  interests or as leasehold interests. If the condominium is
  377  created or being sold on a leasehold, the location of the lease
  378  in the disclosure materials shall be stated.
  379         (b) If timeshare estates are or may be created with respect
  380  to any unit in the condominium, a statement in conspicuous type
  381  stating that timeshare estates are created and being sold in
  382  units in the condominium.
  383         (6) A description of the recreational and other commonly
  384  used facilities that will be used only by unit owners of the
  385  condominium, including, but not limited to, the following:
  386         (a) Each room and its intended purposes, location,
  387  approximate floor area, and capacity in numbers of people.
  388         (b) Each swimming pool, as to its general location,
  389  approximate size and depths, approximate deck size and capacity,
  390  and whether heated.
  391         (c) Additional facilities, as to the number of each
  392  facility, its approximate location, approximate size, and
  393  approximate capacity.
  394         (d) A general description of the items of personal property
  395  and the approximate number of each item of personal property
  396  that the developer is committing to furnish for each room or
  397  other facility or, in the alternative, a representation as to
  398  the minimum amount of expenditure that will be made to purchase
  399  the personal property for the facility.
  400         (e) The estimated date when each room or other facility
  401  will be available for use by the unit owners.
  402         (f)1. An identification of each room or other facility to
  403  be used by unit owners that will not be owned by the unit owners
  404  or the association;
  405         2. A reference to the location in the disclosure materials
  406  of the lease or other agreements providing for the use of those
  407  facilities; and
  408         3. A description of the terms of the lease or other
  409  agreements, including the length of the term; the rent payable,
  410  directly or indirectly, by each unit owner, and the total rent
  411  payable to the lessor, stated in monthly and annual amounts for
  412  the entire term of the lease; and a description of any option to
  413  purchase the property leased under any such lease, including the
  414  time the option may be exercised, the purchase price or how it
  415  is to be determined, the manner of payment, and whether the
  416  option may be exercised for a unit owner’s share or only as to
  417  the entire leased property.
  418         (g) A statement as to whether the developer may provide
  419  additional facilities not described above; their general
  420  locations and types; improvements or changes that may be made;
  421  the approximate dollar amount to be expended; and the maximum
  422  additional common expense or cost to the individual unit owners
  423  that may be charged during the first annual period of operation
  424  of the modified or added facilities.
  425  
  426  Descriptions as to locations, areas, capacities, numbers,
  427  volumes, or sizes may be stated as approximations or minimums.
  428         (7) A description of the recreational and other facilities
  429  that will be used in common with other condominiums, community
  430  associations, or planned developments which require the payment
  431  of the maintenance and expenses of such facilities, directly or
  432  indirectly, by the unit owners. The description shall include,
  433  but not be limited to, the following:
  434         (a) Each building and facility committed to be built and a
  435  summary description of the structural integrity of each building
  436  for which reserves are required pursuant to s. 718.112(2)(g).
  437         (b) Facilities not committed to be built except under
  438  certain conditions, and a statement of those conditions or
  439  contingencies.
  440         (c) As to each facility committed to be built, or which
  441  will be committed to be built upon the happening of one of the
  442  conditions in paragraph (b), a statement of whether it will be
  443  owned by the unit owners having the use thereof or by an
  444  association or other entity which will be controlled by them, or
  445  others, and the location in the exhibits of the lease or other
  446  document providing for use of those facilities.
  447         (d) The year in which each facility will be available for
  448  use by the unit owners or, in the alternative, the maximum
  449  number of unit owners in the project at the time each of all of
  450  the facilities is committed to be completed.
  451         (e) A general description of the items of personal
  452  property, and the approximate number of each item of personal
  453  property, that the developer is committing to furnish for each
  454  room or other facility or, in the alternative, a representation
  455  as to the minimum amount of expenditure that will be made to
  456  purchase the personal property for the facility.
  457         (f) If there are leases, a description thereof, including
  458  the length of the term, the rent payable, and a description of
  459  any option to purchase.
  460  
  461  Descriptions shall include location, areas, capacities, numbers,
  462  volumes, or sizes and may be stated as approximations or
  463  minimums.
  464         (8) Recreation lease or associated club membership:
  465         (a) If any recreational facilities or other facilities
  466  offered by the developer and available to, or to be used by,
  467  unit owners are to be leased or have club membership associated,
  468  the following statement in conspicuous type shall be included:
  469  THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
  470  CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
  471  CONDOMINIUM. There shall be a reference to the location in the
  472  disclosure materials where the recreation lease or club
  473  membership is described in detail.
  474         (b) If it is mandatory that unit owners pay a fee, rent,
  475  dues, or other charges under a recreational facilities lease or
  476  club membership for the use of facilities, there shall be in
  477  conspicuous type the applicable statement:
  478         1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
  479  MANDATORY FOR UNIT OWNERS; or
  480         2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
  481  TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
  482         3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS
  483  AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,
  484  RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE
  485  OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
  486         4. A similar statement of the nature of the organization or
  487  the manner in which the use rights are created, and that unit
  488  owners are required to pay.
  489  
  490  Immediately following the applicable statement, the location in
  491  the disclosure materials where the development is described in
  492  detail shall be stated.
  493         (c) If the developer, or any other person other than the
  494  unit owners and other persons having use rights in the
  495  facilities, reserves, or is entitled to receive, any rent, fee,
  496  or other payment for the use of the facilities, then there shall
  497  be the following statement in conspicuous type: THE UNIT OWNERS
  498  OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
  499  RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
  500  following this statement, the location in the disclosure
  501  materials where the rent or land use fees are described in
  502  detail shall be stated.
  503         (d) If, in any recreation format, whether leasehold, club,
  504  or other, any person other than the association has the right to
  505  a lien on the units to secure the payment of assessments, rent,
  506  or other exactions, there shall appear a statement in
  507  conspicuous type in substantially the following form:
  508  
  509         1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH
  510         UNIT TO SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS
  511         UNDER THE RECREATION LEASE. THE UNIT OWNER’S FAILURE
  512         TO MAKE THESE PAYMENTS MAY RESULT IN FORECLOSURE OF
  513         THE LIEN; or
  514         2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH
  515         UNIT TO SECURE THE PAYMENT OF ASSESSMENTS OR OTHER
  516         EXACTIONS COMING DUE FOR THE USE, MAINTENANCE, UPKEEP,
  517         OR REPAIR OF THE RECREATIONAL OR COMMONLY USED
  518         FACILITIES. THE UNIT OWNER’S FAILURE TO MAKE THESE
  519         PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
  520  
  521  Immediately following the applicable statement, the location in
  522  the disclosure materials where the lien or lien right is
  523  described in detail shall be stated.
  524         (9) If the developer or any other person has the right to
  525  increase or add to the recreational facilities at any time after
  526  the establishment of the condominium whose unit owners have use
  527  rights therein, without the consent of the unit owners or
  528  associations being required, there shall appear a statement in
  529  conspicuous type in substantially the following form:
  530  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT
  531  CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately
  532  following this statement, the location in the disclosure
  533  materials where such reserved rights are described shall be
  534  stated.
  535         (10) A statement of whether the developer’s plan includes a
  536  program of leasing units rather than selling them, or leasing
  537  units and selling them subject to such leases. If so, there
  538  shall be a description of the plan, including the number and
  539  identification of the units and the provisions and term of the
  540  proposed leases, and a statement in boldfaced type that: THE
  541  UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
  542         (11) The arrangements for management of the association and
  543  maintenance and operation of the condominium property and of
  544  other property that will serve the unit owners of the
  545  condominium property, and a description of the management
  546  contract and all other contracts for these purposes having a
  547  term in excess of 1 year, including the following:
  548         (a) The names of contracting parties.
  549         (b) The term of the contract.
  550         (c) The nature of the services included.
  551         (d) The compensation, stated on a monthly and annual basis,
  552  and provisions for increases in the compensation.
  553         (e) A reference to the volumes and pages of the condominium
  554  documents and of the exhibits containing copies of such
  555  contracts.
  556  
  557  Copies of all described contracts shall be attached as exhibits.
  558  If there is a contract for the management of the condominium
  559  property, then a statement in conspicuous type in substantially
  560  the following form shall appear, identifying the proposed or
  561  existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
  562  THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
  563  CONTRACT MANAGER). Immediately following this statement, the
  564  location in the disclosure materials of the contract for
  565  management of the condominium property shall be stated.
  566         (12) If the developer or any other person or persons other
  567  than the unit owners has the right to retain control of the
  568  board of administration of the association for a period of time
  569  which can exceed 1 year after the closing of the sale of a
  570  majority of the units in that condominium to persons other than
  571  successors or alternate developers, then a statement in
  572  conspicuous type in substantially the following form shall be
  573  included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
  574  RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
  575  HAVE BEEN SOLD. Immediately following this statement, the
  576  location in the disclosure materials where this right to control
  577  is described in detail shall be stated.
  578         (13) If there are any restrictions upon the sale, transfer,
  579  conveyance, or leasing of a unit, then a statement in
  580  conspicuous type in substantially the following form shall be
  581  included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED
  582  OR CONTROLLED. Immediately following this statement, the
  583  location in the disclosure materials where the restriction,
  584  limitation, or control on the sale, lease, or transfer of units
  585  is described in detail shall be stated.
  586         (14) If the condominium is part of a phase project, the
  587  following information shall be stated:
  588         (a) A statement in conspicuous type in substantially the
  589  following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND
  590  AND UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately
  591  following this statement, the location in the disclosure
  592  materials where the phasing is described shall be stated.
  593         (b) A summary of the provisions of the declaration which
  594  provide for the phasing.
  595         (c) A statement as to whether or not residential buildings
  596  and units which are added to the condominium may be
  597  substantially different from the residential buildings and units
  598  originally in the condominium. If the added residential
  599  buildings and units may be substantially different, there shall
  600  be a general description of the extent to which such added
  601  residential buildings and units may differ, and a statement in
  602  conspicuous type in substantially the following form shall be
  603  included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE
  604  CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER
  605  BUILDINGS AND UNITS IN THE CONDOMINIUM. Immediately following
  606  this statement, the location in the disclosure materials where
  607  the extent to which added residential buildings and units may
  608  substantially differ is described shall be stated.
  609         (d) A statement of the maximum number of buildings
  610  containing units, the maximum and minimum numbers of units in
  611  each building, the maximum number of units, and the minimum and
  612  maximum square footage of the units that may be contained within
  613  each parcel of land which may be added to the condominium.
  614         (15) If a condominium created on or after July 1, 2000, is
  615  or may become part of a multicondominium, the following
  616  information must be provided:
  617         (a) A statement in conspicuous type in substantially the
  618  following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
  619  MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
  620  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately
  621  following this statement, the location in the prospectus or
  622  offering circular and its exhibits where the multicondominium
  623  aspects of the offering are described must be stated.
  624         (b) A summary of the provisions in the declaration,
  625  articles of incorporation, and bylaws which establish and
  626  provide for the operation of the multicondominium, including a
  627  statement as to whether unit owners in the condominium will have
  628  the right to use recreational or other facilities located or
  629  planned to be located in other condominiums operated by the same
  630  association, and the manner of sharing the common expenses
  631  related to such facilities.
  632         (c) A statement of the minimum and maximum number of
  633  condominiums, and the minimum and maximum number of units in
  634  each of those condominiums, which will or may be operated by the
  635  association, and the latest date by which the exact number will
  636  be finally determined.
  637         (d) A statement as to whether any of the condominiums in
  638  the multicondominium may include units intended to be used for
  639  nonresidential purposes and the purpose or purposes permitted
  640  for such use.
  641         (e) A general description of the location and approximate
  642  acreage of any land on which any additional condominiums to be
  643  operated by the association may be located.
  644         (16) If the condominium is created by conversion of
  645  existing improvements, the following information shall be
  646  stated:
  647         (a) The information required by s. 718.616.
  648         (b) A caveat that there are no express warranties unless
  649  they are stated in writing by the developer.
  650         (17) A summary of the restrictions, if any, to be imposed
  651  on units concerning the use of any of the condominium property,
  652  including statements as to whether there are restrictions upon
  653  children and pets, and reference to the volumes and pages of the
  654  condominium documents where such restrictions are found, or if
  655  such restrictions are contained elsewhere, then a copy of the
  656  documents containing the restrictions shall be attached as an
  657  exhibit.
  658         (18) If there is any land that is offered by the developer
  659  for use by the unit owners and that is neither owned by them nor
  660  leased to them, the association, or any entity controlled by
  661  unit owners and other persons having the use rights to such
  662  land, a statement shall be made as to how such land will serve
  663  the condominium. If any part of such land will serve the
  664  condominium, the statement shall describe the land and the
  665  nature and term of service, and the declaration or other
  666  instrument creating such servitude shall be included as an
  667  exhibit.
  668         (19) The manner in which utility and other services,
  669  including, but not limited to, sewage and waste disposal, water
  670  supply, and storm drainage, will be provided and the person or
  671  entity furnishing them.
  672         (20) An explanation of the manner in which the
  673  apportionment of common expenses and ownership of the common
  674  elements has been determined.
  675         (21) An estimated operating budget for the condominium and
  676  the association, and a schedule of the unit owner’s expenses
  677  shall be attached as an exhibit and shall contain the following
  678  information:
  679         (a) The estimated monthly and annual expenses of the
  680  condominium and the association that are collected from unit
  681  owners by assessments.
  682         (b) The estimated monthly and annual expenses of each unit
  683  owner for a unit, other than common expenses paid by all unit
  684  owners, payable by the unit owner to persons or entities other
  685  than the association, as well as to the association, including
  686  fees assessed pursuant to s. 718.113(1) for maintenance of
  687  limited common elements where such costs are shared only by
  688  those entitled to use the limited common element, and the total
  689  estimated monthly and annual expense. There may be excluded from
  690  this estimate expenses which are not provided for or
  691  contemplated by the condominium documents, including, but not
  692  limited to, the costs of private telephone; maintenance of the
  693  interior of condominium units, which is not the obligation of
  694  the association; maid or janitorial services privately
  695  contracted for by the unit owners; utility bills billed directly
  696  to each unit owner for utility services to his or her unit;
  697  insurance premiums other than those incurred for policies
  698  obtained by the condominium; and similar personal expenses of
  699  the unit owner. A unit owner’s estimated payments for
  700  assessments shall also be stated in the estimated amounts for
  701  the times when they will be due.
  702         (c) The estimated items of expenses of the condominium and
  703  the association, except as excluded under paragraph (b),
  704  including, but not limited to, the following items, which shall
  705  be stated as an association expense collectible by assessments
  706  or as unit owners’ expenses payable to persons other than the
  707  association:
  708         1. Expenses for the association and condominium:
  709         a. Administration of the association.
  710         b. Management fees.
  711         c. Maintenance.
  712         d. Rent for recreational and other commonly used
  713  facilities.
  714         e. Taxes upon association property.
  715         f. Taxes upon leased areas.
  716         g. Insurance.
  717         h. Security provisions.
  718         i. Other expenses.
  719         j. Operating capital.
  720         k. Reserves for all applicable items referenced in s.
  721  718.112(2)(g).
  722         l. Fees payable to the division.
  723         2. Expenses for a unit owner:
  724         a. Rent for the unit, if subject to a lease.
  725         b. Rent payable by the unit owner directly to the lessor or
  726  agent under any recreational lease or lease for the use of
  727  commonly used facilities, which use and payment is a mandatory
  728  condition of ownership and is not included in the common expense
  729  or assessments for common maintenance paid by the unit owners to
  730  the association.
  731         (d) The following statement in conspicuous type:
  732  
  733         THE BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS
  734         BEEN PREPARED IN ACCORDANCE WITH THE CONDOMINIUM ACT
  735         AND IS A GOOD FAITH ESTIMATE ONLY AND REPRESENTS AN
  736         APPROXIMATION OF FUTURE EXPENSES BASED ON FACTS AND
  737         CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
  738         ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED
  739         COSTS. SUCH CHANGES IN COST DO NOT CONSTITUTE MATERIAL
  740         ADVERSE CHANGES IN THE OFFERING.
  741  
  742         (e) Each budget for an association prepared by a developer
  743  consistent with this subsection shall be prepared in good faith
  744  and shall reflect accurate estimated amounts for the required
  745  items in paragraph (c) at the time of the filing of the offering
  746  circular with the division, and subsequent increased amounts of
  747  any item included in the association’s estimated budget that are
  748  beyond the control of the developer shall not be considered an
  749  amendment that would give rise to rescission rights set forth in
  750  s. 718.503(1)(a) or (b), nor shall such increases modify, void,
  751  or otherwise affect any guarantee of the developer contained in
  752  the offering circular or any purchase contract. It is the intent
  753  of this paragraph to clarify existing law.
  754         (f) The estimated amounts shall be stated for a period of
  755  at least 12 months and may distinguish between the period prior
  756  to the time unit owners other than the developer elect a
  757  majority of the board of administration and the period after
  758  that date.
  759         (22) A schedule of estimated closing expenses to be paid by
  760  a buyer or lessee of a unit and a statement of whether title
  761  opinion or title insurance policy is available to the buyer and,
  762  if so, at whose expense.
  763         (23) The identity of the developer and the chief operating
  764  officer or principal directing the creation and sale of the
  765  condominium and a statement of its and his or her experience in
  766  this field.
  767         (24) Copies of the following, to the extent they are
  768  applicable, shall be included as exhibits:
  769         (a) The declaration of condominium, or the proposed
  770  declaration if the declaration has not been recorded.
  771         (b) The articles of incorporation creating the association.
  772         (c) The bylaws of the association.
  773         (d) The ground lease or other underlying lease of the
  774  condominium.
  775         (e) The management agreement and all maintenance and other
  776  contracts for management of the association and operation of the
  777  condominium and facilities used by the unit owners having a
  778  service term in excess of 1 year.
  779         (f) The estimated operating budget for the condominium, the
  780  required schedule of unit owners’ expenses, and the
  781  association’s most recent structural integrity reserve study or
  782  a statement that the association has not completed a structural
  783  integrity reserve study.
  784         (g) A copy of the floor plan of the unit and the plot plan
  785  showing the location of the residential buildings and the
  786  recreation and other common areas.
  787         (h) The lease of recreational and other facilities that
  788  will be used only by unit owners of the subject condominium.
  789         (i) The lease of facilities used by owners and others.
  790         (j) The form of unit lease, if the offer is of a leasehold.
  791         (k) A declaration of servitude of properties serving the
  792  condominium but not owned by unit owners or leased to them or
  793  the association.
  794         (l) The statement of condition of the existing building or
  795  buildings, if the offering is of units in an operation being
  796  converted to condominium ownership.
  797         (m) The statement of inspection for termite damage and
  798  treatment of the existing improvements, if the condominium is a
  799  conversion.
  800         (n) The form of agreement for sale or lease of units.
  801         (o) A copy of the agreement for escrow of payments made to
  802  the developer prior to closing.
  803         (p) A copy of the documents containing any restrictions on
  804  use of the property required by subsection (17).
  805         (q) A copy of the inspector-prepared summary of the
  806  milestone inspection report as described in ss. 553.899 and
  807  718.301(4)(p), as applicable.
  808         (25) Any prospectus or offering circular complying, prior
  809  to the effective date of this act, with the provisions of former
  810  ss. 711.69 and 711.802 may continue to be used without amendment
  811  or may be amended to comply with this chapter.
  812         (26) A brief narrative description of the location and
  813  effect of all existing and intended easements located or to be
  814  located on the condominium property other than those described
  815  in the declaration.
  816         (27) If the developer is required by state or local
  817  authorities to obtain acceptance or approval of any dock or
  818  marina facilities intended to serve the condominium, a copy of
  819  any such acceptance or approval acquired by the time of filing
  820  with the division under s. 718.502(1) or a statement that such
  821  acceptance or approval has not been acquired or received.
  822         (28) Evidence demonstrating that the developer has an
  823  ownership, leasehold, or contractual interest in the land upon
  824  which the condominium is to be developed.
  825         Section 6. The amendments made to ss. 718.103(14) and
  826  718.202(3), Florida Statutes, and the provisions of s.
  827  718.407(1), (2), and (7), Florida Statutes, are intended to
  828  clarify existing law and shall apply retroactively; however,
  829  such amendments do not revive or reinstate any right or interest
  830  that has been fully and finally adjudicated as invalid before
  831  July 1, 2024.
  832         Section 7. This act shall take effect July 1, 2024.

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