Q: Is a condominium association a corporation?
A: Yes. Section 718.104 (4)(i), Florida Statutes, states “The association … must be a corporation for profit or a corporation not for profit.”
Q: I represent a buyer who entered into a contract to purchase a residential condominium. The contract includes Section 718.503 (2)'s statuturly required language giving the buyer three days after execution of the contract and receipt by the buyer of the condominium documents to cancel. It has been two weeks since the parties entered into the contract, and the seller has yet to provide the condo documents to the buyer. Now the seller wants the buyer to sign an addendum which says the buyer will only have 24 hours from receipt of the documents to cancel. If the buyer signs this amendment, would it be valid and enforceable?
A: No. The disclosure language set forth in Section 718.503(2) provides “any purported waiver of these voidability rights shall be of no effect.” Therefore, an amendment to a contract where the parties presumably agreed to resolve the time period the buyer has to cancel from the three day period outlined in the statute to 24 hours would not be enforceable.
Q: Does the seller of a residential condominium resale have a set amount of time, as a matter of law, in which to provide “condominium docs” to the buyer?
A: No. However, the buyer has three days (excluding Saturdays, Sundays, and legal holidays) from the time he or she receives the documents to rescind the contract, so it’s in the best interest of the seller to provide the documents as soon as possible.
Q: I represent a buyer who has entered into a contract to purchase a residential condominium resale unit. The seller’s agent says that if the buyer wants a copy of the condominium association documents, the buyer must pay for them. Isn’t it the seller’s obligation to pay for the condominium association documents?
A: Yes. Section 718.503(2) (a), Florida Statues, provides “… 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 declaration of condominium, articles of incorporation of the association, bylaws and rules of the association, financial information required by section (s.) 718.111, and the document entitled “Frequently Asked Questions and Answers” required by s. 718.504.”
NOTE: Changes to the 718.503 (2) made by the Florida Legislature in 2008 were recently approved by the governor. These changes take effect October 1, 2008, and in part, provide on and after January 1, 2009, the prospective purchaser shall also be entitled to receive from the seller a copy of a governance form. The law explains that this form summarizes governance of condominium associations and states that it "shall be provided by the division [of land sales, condominiums and mobile homes.]."
Q: I represent a buyer of a condominium unit. The buyer's lender requires an estoppel letter from the condominium association, which the association is charging my buyer $150 to provide. May the association charge for an estoppel letter?
A: Yes. Section 718.111(12)(e), Florida Statutes states, in pertinent part, that “the association ... may charge a reasonable fee to the prospective purchaser, lienholder, or the current unit owner for providing good faith responses to requests for information by or on behalf of a prospective purchaser or lienholder, other than that required by law, if the fee does not exceed $150 plus the reasonable cost of photocopying and any attorney’s fees incurred by the association in connection with the response.
Q: May a residential condominium restrict a unit owner’s rights with respect to the rental of units?
A: However, Section 718.110 (13), Florida Statutes, provides that “any amendment restricting unit owners’ rights relating to the rental of units applies only to unit owners who consent to the amendment and unit owners who purchase their units after the effective date of that amendment.”
Q: I represent a bank that acquired title to a residential condominium unit through foreclosure procedures. They say they’re not required to comply with the disclosure required pursuant to Section 718.503(2) since the bank isn't a traditional seller, even though this is a resale. Is this true?
A: No. Section 718.503(2) provides that "each unit owner who is not a developer … shall comply with the provisions of this subsection prior to the sale of his or her unit." A "unit owner" is defined in Section 718.103 as a "record owner of legal title to a condominium parcel." There is no exemption set forth in the condominium act for banks that acquire title to residential units via foreclosure.
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