Community Association Industry Legal Blog

This is Part V in a series of Blog posts dedicated to explaining the process for the termination of condominiums according to the Florida Condominium Act. Previous posts in this series discussed the process of termination due to certain events such as economic waste, impossibility to continue as a condominium, and the purchase of condominium property by a developer. Part III and Part IV also explained the required provisions for a plan of termination and what must be done after the plan is executed and in effect. This Blog post describes the powers of the association and the trustee during the termination of condominium process.

This is Part IV in a series of Blog posts dedicated to explaining the process for the termination of condominiums according to the Florida Condominium Act. Previous posts in this series discussed the process of termination due to economic waste, the impossibility to continue as a condominium, and the purchase of condominium property by a developer. Part III explained the required provisions within a plan of termination. This post explains the steps that must be taken to properly execute the plan of termination and what must be done after the plan is executed and in effect.

Section 718.111(12) of the Florida Condominium Act and Rules 61B-22.002, 61B-22.003(3), 61B-23.002(7) and 61B-23.0021(13) of the Florida Administrative Code provide guidelines for the maintenance and inspection of the association’s official records. Part 1 of this 3 part blog identified what records constitute official condominium association documents. Part 2 of this blog identified what records are specifically exempt from inspection by unit owners. This posting will identify specific official records retention requirements and logistical considers associated with unit owner inspections of official records.

This is Part III in a series of Blog posts discussing the process for the termination of condominiums according to Section 718.117 of the Florida Condominium Act. Part I of this series focused on the process for termination due to economic waste or impossibility to continue. Part II discussed the optional termination process, which was added to the statutes in 2007. This Blog post provides an overview of the plan of termination and the required provisions to be included in the plan according to the Florida Statutes.

As discussed in Part I of this Blog series, two scenarios lead to most of the termination of condominiums: 1) the condominium is in a nearly uninhabitable condition and the cost of construction or repairs exceeds the projected fair market value of the condominium property (often due to natural disasters); or 2) the condominium is located on prime real estate and a developer has made an offer to purchase the property for alternative development. Part I focused on the former reason and discussed condominium terminations due to economic waste or impossibility of continuing. This Blog post concerns the “optional termination process” established by the Florida legislature in the 2007 revision of the Florida Condominium Act’s termination provisions. See Fla. Stat. §718.117(3).

The U.S. District Court for the Southern District of Florida, on January 3, 2014, issued an opinion explaining what Florida associations can demand from first mortgagees who are protected by the Safe Harbor provisions of the Condominium and Homeowners’ Association Acts. In United States of America v. Forest Hill Gardens East Condominium Association, the court clarified what charges are included under the terms “common expenses” and “regular assessments” as found within the Florida Statutes. U.S. v. Forest Hill Gardens East Condo Ass’n, 2014 WL 28723 (S.D. Fla. Jan. 3, 2014). In short, the court determined that interest, late fees, collection costs and attorneys’ fees were not “common expenses” or “regular periodic assessments” for which first mortgagees were liable under Florida’s Safe Harbor provision. Id. at 1.

While the termination of a condominium may not be an everyday occurrence, it does happen from time to time. The situation occurs frequently enough that the Florida legislature dedicated an entire section of the Florida Condominium Act to it for ensuring that a formal process is in place to protect the interests of all those involved and affected. Specifically, Section 718.117, Florida Statutes, governs this termination of condominium process and provides various procedures to follow depending upon the circumstances causing the condominium’s termination. This Blog post is Part I in a series of posts on this topic and focuses on the termination of condominiums due to economic waste or impossibility of continuing. See Fla. Stat. §718.117(2).

When properties within a condominium association are purchased, the purchaser is bound by the association’s governing documents, which can include the declaration, bylaws, articles of incorporation, and rules and regulations. When unit owners violate those governing documents, associations have certain remedies available to it under the Florida Condominium Act. Specifically, Section 718.303, Florida Statutes, provides those remedies and also the procedures that associations must follow to enforce them. This Blog post provides an overview of the statutory remedies available to condominium associations, along with the required procedures that associations must follow to ensure they do not violate the Florida Statues while attempting to enforce their own rules and regulations.

What is the difference between a license, lease, or easement when a resident pays for and enters into an agreement for additional property? This Blog post will analyze the Third District Court of Appeal’s recent decision answering this questions in Keane v. President Condominium Ass’n, Inc., 3D13-746, 2014 WL 626710 (Fla. 3d DCA 2014) and opining on its impact to condominium operations.

Section 718.111(12) of the Florida Condominium Act and Rules 61B-22.002, 61B-22.003(3), 61B-23.002(7) and 61B-23.0021(13) of the Florida Administrative Code provide guidelines for the maintenance and inspection of the association’s official records. Part 1 of this 3 part blog identified what records constitute official condominium association documents. This posting will identify what documents are specifically exempt from association official records.