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Florida Law Changes Regarding Florida Condominiums

April 19, 2013

Nature Coast Real Estate School

Recent law changes regarding Florida Condominiums were enacted by the Division of Florida Condominiums, Timeshares and Mobile Homes (718 F.S.)  of the Department of Business and Professional Regulation (DBPR).

Many of these changes are a result of the record high levels of delinquencies of mandatory Association Fees by homeowners, which has created a crisis in many of the Condominium Communities.  Many communities are facing bankruptcy as a result of owner abandonment of properties, and the resulting blacklisting of Condo Communities by institutional lenders, who consider Condominiums in Florida and other affected states to be too high risk to approve mortgage applications.  This hinders the recovery of the Communities, even with attractively low prices on the units, perpetuating the cycle of abandonment and foreclosure.

Short sales were frequently denied by lenders due to the high amount of delinquent condo fees owed.  Lenders now own a large number of Florida condos and are required to pay more past due assessments on foreclosed properties.

Owners or occupants may now be denied use of recreational facilities and amenities if the owner is 90 days delinquent in the mandatory condominium fees/assessments.

Associations how have the right to demand that tenants pay the rent to the Association if the owner is delinquent in their fees/assessments to compensate the Associations for assessments owed to Association.

Under Florida Law, any purchaser of a Condominium has the right to cancel the purchase contract of a resale Condominium unit within 3 business days after receiving certain documentation.  Such documentation includes the Declaration of Condominium, Q & A sheet, Articles of Incorporation, By Laws, Rules of the Association,  most recent year’s end financial statement, and the Governance Form.  This cancellation period begins after signing the purchase contract or signing receipt of documents, whichever is later.

Purchasers should  be very mindful of the risks involved in purchasing condominiums in areas of high foreclosure rates.

Nature Coast Real Estate School is located four miles north of the Pasco County line on US 19 in Spring Hill Florida. It serves the Real Estate Licensing needs of Pasco County and Hernando County Florida and offers live classroom instruction.

Nature Coast Real Estate School

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