Bill Text: FL S1706 | 2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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       Florida Senate - 2024                                    SB 1706
       
       
        
       By Senator Yarborough
       
       
       
       
       
       4-01027B-24                                           20241706__
    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         “condominium property”; amending s. 718.202, F.S.;
    6         conforming provisions to changes made by the act;
    7         creating s. 718.407, F.S.; providing that a
    8         condominium may be created within a portion of a
    9         building or within a multiple parcel building;
   10         providing for the common elements of such condominium;
   11         providing requirements for the declaration of
   12         condominium and other recorded instruments;
   13         authorizing an association to inspect and copy certain
   14         books and records and to receive an annual budget;
   15         requiring a specified statement be included in a
   16         contract for sale of a unit of the condominium;
   17         requiring a seller of a unit of the condominium to
   18         provide a specified disclosure summary to a purchaser;
   19         providing that a multiple parcel building is not a
   20         subdivision of land if the land is not subdivided;
   21         amending s. 718.503, F.S.; requiring certain persons
   22         to provide specified disclosures to purchasers under
   23         certain circumstances; providing construction;
   24         providing an effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Subsection (14) of section 718.103, Florida
   29  Statutes, is amended to read:
   30         718.103 Definitions.—As used in this chapter, the term:
   31         (14) “Condominium property” means the lands and,
   32  leaseholds, and all improvements thereon, and personal property
   33  that are subjected to condominium ownership, whether or not
   34  contiguous, and all improvements thereon and all easements and
   35  rights appurtenant thereto, whether or not contiguous, and
   36  personal property, if any, which are intended for use in
   37  connection with the condominium and which are subject to
   38  condominium ownership.
   39         Section 2. Subsection (3) of section 718.202, Florida
   40  Statutes, is amended to read:
   41         718.202 Sales or reservation deposits prior to closing.—
   42         (3) If the contract for sale of the condominium unit so
   43  provides, the developer may withdraw escrow funds in excess of
   44  10 percent of the purchase price from the special account
   45  required by subsection (2) when the construction of improvements
   46  has begun. He or she may use the funds for the actual costs
   47  incurred by the developer in the construction and development of
   48  the condominium property in which the unit to be sold is located
   49  or the easements and rights appurtenant thereto. For purposes of
   50  this subsection, the term “actual costs” includes, but is not
   51  limited to, expenditures for demolition, site clearing, permit
   52  fees, impact fees, and utility reservation fees, as well as
   53  architectural, engineering, and surveying fees that directly
   54  relate to construction and development of the condominium
   55  property or the easements and rights appurtenant thereto.
   56  However, no part of these funds may be used for salaries,
   57  commissions, or expenses of salespersons; for advertising,
   58  marketing, or promotional purposes; or for loan fees and costs,
   59  principal and interest on loans, attorney fees, accounting fees,
   60  or insurance costs. A contract which permits use of the advance
   61  payments for these purposes shall include the following legend
   62  conspicuously printed or stamped in boldfaced type on the first
   63  page of the contract and immediately above the place for the
   64  signature of the buyer: ANY PAYMENT IN EXCESS OF 10 PERCENT OF
   65  THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO CLOSING PURSUANT
   66  TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES BY THE
   67  DEVELOPER.
   68         Section 3. Section 718.407, Florida Statutes, is created to
   69  read:
   70         718.407 Condominiums created within a portion of a building
   71  or within a multiple parcel building.—
   72         (1) Notwithstanding s. 718.103(12) or s. 718.108(1), a
   73  condominium may be created within a portion of a building or
   74  within a multiple parcel building, as defined in s. 193.0237(1),
   75  as provided in this section.
   76         (2) The common elements of a condominium created within a
   77  portion of a building or a multiple parcel building are only the
   78  portions of the building submitted to the condominium form of
   79  ownership, excluding the units of such condominium.
   80         (3) The declaration of condominium that creates a
   81  condominium within a portion of a building or within a multiple
   82  parcel building, the recorded instrument that creates the
   83  multiple parcel building, or any other recorded instrument
   84  applicable under this section must specify all of the following:
   85         (a) The portions of the building which are included in the
   86  condominium and the portions of the building that are excluded.
   87         (b) The party responsible for maintaining and operating
   88  those portions of the building which are shared facilities,
   89  including, but not limited to, the roof, the exterior of the
   90  building, windows, balconies, elevators, the building lobby,
   91  corridors, recreational amenities, and utilities.
   92         (c)1. How the expenses for the maintenance and operation of
   93  the shared facilities will be apportioned among the portions of
   94  the building, including the specific initial apportionment of
   95  expenses. An owner of a portion of the building, or the
   96  condominium association, as applicable to the portion of the
   97  building submitted to condominium form of ownership, must
   98  approve any increase in the expenses apportioned to such portion
   99  of the building. The apportionment of the expenses for the
  100  maintenance and operation of the shared facilities is presumed
  101  appropriate if such apportionment is based on any of the
  102  following criteria or any combination thereof:
  103         a. The area or volume of each portion of the building in
  104  relation to the total area or volume of the entire building,
  105  exclusive of the shared facilities.
  106         b. The market value of each portion of the building in
  107  comparison to the total market value of the entire building.
  108         c. The extent to which the unit owners are permitted to use
  109  various components of the shared facilities.
  110         2. This paragraph does not preclude the use of an
  111  alternative method of apportionment of expenses provided the
  112  method is stated in the declaration of condominium that creates
  113  a condominium within a portion of a building or within a
  114  multiple parcel building, the recorded instrument that creates
  115  the multiple parcel building, or any other recorded instrument
  116  applicable under this section.
  117         (d) The party responsible for collecting shared expenses
  118  from all owners.
  119         (e) The rights and remedies that are available to enforce
  120  payment from the other owners.
  121         (4) The association of a condominium subject to this
  122  section has the right to inspect and copy the books and records
  123  upon which the costs for maintaining and operating the shared
  124  facilities are based and to receive an annual budget with
  125  respect to such costs.
  126         (5) Each contract for the sale of a unit in a condominium
  127  subject to this section must contain in conspicuous type a
  128  clause that substantially states:
  129  
  130         THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
  131         CREATED WITHIN A PORTION OF A BUILDING. THE COMMON
  132         ELEMENTS OF THE CONDOMINIUM CONSIST ONLY OF THE
  133         PORTIONS OF THE BUILDING SUBMITTED TO THE CONDOMINIUM
  134         FORM OF OWNERSHIP, EXCLUDING THE UNITS. THE
  135         CONDOMINIUM MAY HAVE MINIMAL OR NO COMMON ELEMENTS.
  136         PORTIONS OF THE BUILDING THAT ARE NOT INCLUDED IN THE
  137         CONDOMINIUM ARE GOVERNED BY A SEPARATE RECORDED
  138         INSTRUMENT THAT CONTAINS IMPORTANT PROVISIONS AND
  139         RIGHTS.
  140  
  141         A CONTRACT THAT DOES NOT CONFORM TO THE REQUIREMENTS
  142         OF SECTION 718.407, FLORIDA STATUTES, IS VOIDABLE AT
  143         THE OPTION OF THE PURCHASER BEFORE CLOSING.
  144  
  145         (6) The seller of a unit in a condominium subject to this
  146  section must provide a separate disclosure summary that must be
  147  signed by the purchaser. The disclosure summary must contain the
  148  following statements in conspicuous type:
  149  
  150                         DISCLOSURE SUMMARY                        
  151         THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
  152         CREATED WITHIN A PORTION OF A BUILDING OR WITHIN A
  153         MULTIPLE PARCEL BUILDING. PORTIONS OF THE BUILDING
  154         THAT ARE NOT INCLUDED IN THE CONDOMINIUM ARE (OR WILL
  155         BE) GOVERNED BY A SEPARATE RECORDED INSTRUMENT THAT
  156         CONTAINS IMPORTANT PROVISIONS AND RIGHTS. THE
  157         ASSOCIATION AND UNIT OWNERS MAY HAVE LIMITED OR NO
  158         CONTROL OVER THE MAINTENANCE, OPERATION, AND COSTS OF
  159         THE PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO
  160         THE CONDOMINIUM FORM OF OWNERSHIP. A COPY OF SUCH
  161         INSTRUMENT IS ATTACHED HERETO. THE ALLOCATION BETWEEN
  162         THE OWNERS OF THE COSTS TO MAINTAIN AND OPERATE THE
  163         BUILDING ARE SET FORTH IN THE DECLARATION OF
  164         CONDOMINIUM OR OTHER RECORDED INSTRUMENT, WHICH IS
  165         ATTACHED HERETO. THE OWNER OF ANOTHER PORTION OF THE
  166         BUILDING CONTROLS THE MAINTENANCE AND OPERATION OF THE
  167         PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO THE
  168         CONDOMINIUM FORM OF OWNERSHIP AND DETERMINES THE
  169         BUDGET FOR SUCH OPERATION AND MAINTENANCE.
  170  
  171         (7) The creation of a multiple parcel building is not a
  172  subdivision of the land upon which such building is situated
  173  provided the land itself is not subdivided.
  174         Section 4. Paragraph (c) is added to subsection (3) of
  175  section 718.503, Florida Statutes, to read:
  176         718.503 Developer disclosure prior to sale; nondeveloper
  177  unit owner disclosure prior to sale; voidability.—
  178         (3) OTHER DISCLOSURES DISCLOSURE.—
  179         (c) If a unit is located within a condominium that is
  180  created within a portion of a building or within a multiple
  181  parcel building, the developer or nondeveloper unit owner must
  182  provide the disclosures required by s. 718.407(5) and (6).
  183         Section 5. The amendments made to s. 718.103, Florida
  184  Statutes, and the creation of s. 718.407(1), (2), and (7),
  185  Florida Statutes, by this act are intended to clarify existing
  186  law and shall apply retroactively; however, such amendments do
  187  not revive or reinstate any right or interest that has been
  188  fully and finally adjudicated as invalid before July 1, 2024.
  189         Section 6. This act shall take effect July 1, 2024.