When it’s comes to buying commercial real estate, it’s
always been caveat emptor or let the buyer
beware. Well, when selling your condominium unit, it’s
anything but “buyer beware” and it’s more like “seller
better disclose everything they know and everything they may
know and should know.
Florida Statute 718.503(2)(a) provides a plethora of
information that the buyer is entitled to when purchasing a
residential condominium unit. Here is only part of the
statute. We’ll discuss even more seller responsibilities
next week. Here we go:
(2) NONDEVELOPER DISCLOSURE.—
(a) Each unit
owner who is not a developer as defined by this chapter
must comply with this subsection before the sale of his
or her unit. Each prospective purchaser who has entered into
a contract for the purchase of a condominium unit is
entitled, at the seller’s expense, to a current copy of all
of the following:
1. The
declaration of condominium.
2. Articles of
incorporation of the association.
3. Bylaws and
rules of the association.
4. An annual
financial statement and annual budget of the condominium
association.
5. A copy of the
inspector-prepared summary of the milestone inspection
report as described in s. 553.899, if applicable.
6. The
association’s most recent structural integrity reserve study
or a statement that the association has not completed a
structural integrity reserve study.
7. A copy of the
inspection report described in s. 718.301(4)(p) and (q) for
a turnover inspection performed on or after July 1, 2023.
8. The document
entitled “Frequently Asked Questions and Answers” required
by s. 718.504.
(b) The
prospective purchaser is also entitled to receive from the
seller a copy of a governance form. Such form shall be
provided by the division summarizing governance of
condominium associations. In addition to such other
information as the division considers helpful to a
prospective purchaser in understanding association
governance, the governance form shall address the following
subjects:
1. The role of
the board in conducting the day-to-day affairs of the
association on behalf of, and in the best interests of, the
owners.
2. The board’s
responsibility to provide advance notice of board and
membership meetings.
3. The rights of
owners to attend and speak at board and membership meetings.
4. The
responsibility of the board and of owners with respect to
maintenance of the condominium property.
5. The
responsibility of the board and owners to abide by the
condominium documents, this chapter, rules adopted by the
division, and reasonable rules adopted by the board.
6. Owners’
rights to inspect and copy association records and the
limitations on such rights.
7. Remedies
available to owners with respect to actions by the board
which may be abusive or beyond the board’s power and
authority.
8. The right of
the board to hire a property management firm, subject to its
own primary responsibility for such management.
9. The
responsibility of owners with regard to payment of regular
or special assessments necessary for the operation of the
property and the potential consequences of failure to pay
such assessments.
10. The voting
rights of owners.
11. Rights and
obligations of the board in enforcement of rules in the
condominium documents and rules adopted by the board.
The governance
form shall also include the following statement in
conspicuous type: “This publication is intended as an
informal educational overview of condominium governance. In
the event of a conflict, the provisions of chapter 718,
Florida Statutes, rules adopted by the Division of Florida
Condominiums, Timeshares, and Mobile Homes of the Department
of Business and Professional Regulation, the provisions of
the condominium documents, and reasonable rules adopted by
the condominium association’s board of administration
prevail over the contents of this publication.”
Now that is a lot of information a buyer is
entitled to.
I’m sure most of you condo board members or even managers
are shaking your head saying “what in the world is this
condominium governance form Eric’s talking about?” Well. If
you want one, all you have to do is click here:
CONDOMINIUM GOVERNANCE FORM
