03/04/2015
What you should know before buying a condominium
Recent changes to Chapter 718, F.S. include the following:
The requirement that individual unit owners carry hazard insurance was repealed.
Investors who purchase blocks of distressed condos are not considered "developers," nor do they take on developers' responsibilities or liabilities.
Condo associations may now decide whether to retrofit a building with sprinkler systems.
The requirement of mandatory retrofits of sprinkler systems in condos over 75 feet high was repealed.
Lenders are required to pay more in past-due assessments on foreclosed properties.
Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association.
Associations may divert rent paid by a tenant and use it to pay delinquent assessments owed by that unit's owner.
A mandate that any amendment to the condominium association's bylaws that restricts a unit owner's rights relating to the rental of units applies only to those unit owners who consent to the amendment, and unit owners who purchase their units after the effective date of that amendment. This was a response to court decisions allowing associations to restrict rentals by majority vote.
Buyers may rescind a purchase contract within 15 days for a new condominium, or three business days for a resale unit. The time period begins when the buyer signs the contract or is given the required condominium documents, whichever is later. The required documents include the declaration of condominiums, articles of incorporation, bylaws, rules of the association, the condominium association's question and answer sheet, a copy of the most recent year-end financial statement, and a governance form describing the rights and responsibilities of associations and condominium owners.
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