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:
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