COMMUNITY ASSOCIATION MANAGEMENT
FS 468.431 - 438 -- Part VIII
JULY 1, 2018
practice standards; liability.
(1) "Community association" means a residential homeowners' association in which membership is a condition of ownership of a unit in a planned unit development, or of a lot for a home or a mobile home, or of a townhouse, villa, condominium, cooperative, or other residential unit which is part of a residential development scheme and which is authorized to impose a fee which may become a lien on the parcel.
(2) “Community association management” means any of the following practices requiring substantial specialized knowledge, judgment, and managerial skill when done for remuneration and when the association or associations served contain more than 10 units or have an annual budget or budgets in excess of $100,000: controlling or disbursing funds of a community association, preparing budgets or other financial documents for a community association, assisting in the noticing or conduct of community association meetings, determining the number of days required for statutory notices, determining amounts due to the association, collecting amounts due to the association before the filing of a civil action, calculating the votes required for a quorum or to approve a proposition or amendment, completing forms related to the management of a community association that have been created by statute or by a state agency, drafting meeting notices and agendas, calculating and preparing certificates of assessment and estoppel certificates, responding to requests for certificates of assessment and estoppel certificates, negotiating monetary or performance terms of a contract subject to approval by an association, drafting prearbitration demands, coordinating or performing maintenance for real or personal property and other related routine services involved in the operation of a community association, and complying with the association’s governing documents and the requirements of law as necessary to perform such practices. A person who performs clerical or ministerial functions under the direct supervision and control of a licensed manager or who is charged only with performing the maintenance of a community association and who does not assist in any of the management services described in this subsection is not required to be licensed under this part.
(3) "Community association management firm" means a corporation, limited liability company, partnership, trust, association, sole proprietorship, or other similar organization engaging in the business of community association management for the purpose of providing any of the services described in subsection (2).
(4) "Community association manager" means a natural person who is licensed pursuant to this part to perform community association management services.
(5) "Council" means the Regulatory Council of Community Association Managers.
(6) "Department" means the Department of Business and Professional Regulation.
History.--ss. 7, 14, ch. 87-343; s. 1, ch. 89-155; s. 4, ch. 91-429; s. 142, ch. 94-218; s. 1, ch. 94-350; s. 2, ch. 96-291; s. 1, ch. 2008-28.
(1) The Regulatory Council of Community Association Managers is created within the department and shall consist of seven members appointed by the Governor and confirmed by the Senate.
(a) Five members of the council shall be licensed community association managers, one of whom may be a community association manager employed by a timeshare managing entity as described in ss. 468.438 and 721.13, who have held an active license for at least 5 years. The remaining two council members shall be residents of this state, must not be or ever have been connected with the business of community association management, and shall not be prohibited from serving because the member is or has been a resident or board member of a community association.
(b) The Governor shall appoint members for terms of 4 years. Such members shall serve until their successors are appointed. Members' service on the council shall begin upon appointment and shall continue until their successors are appointed.
(2) The council may adopt rules relating to the licensure examination, continuing education requirements, continuing education providers, fees, and professional practice standards to assist the department in carrying out the duties and authorities conferred upon the department by this part.
(3) To the extent the council is authorized to exercise functions otherwise exercised by a board pursuant to chapter 455, the provisions of chapter 455 and s. 20.165 relating to regulatory boards shall apply, including, but not limited to, provisions relating to board rules and the accountability and liability of board members. All proceedings and actions of the council are subject to the provisions of chapter 120. In addition, the provisions of chapter 455 and s. 20.165 shall apply to the department in carrying out the duties and authorities conferred upon the department by this part.
(4) The council may establish a public education program relating to professional community association management.
(5) Members of the council shall serve without compensation but are entitled to receive per diem and travel expenses pursuant to s. 112.061 while carrying out business approved by the council.
(6) The responsibilities of the council shall include, but not be limited to:
(a) Receiving input regarding issues of concern with respect to community association management and recommendations for changes in applicable laws.
(b) Reviewing, evaluating, and advising the division concerning revisions and adoption of rules affecting community association management.
(c) Recommending improvements, if needed, in the education programs offered by the division.
History.--ss. 10, 14, ch. 87-343; s. 4, ch. 91-429; s. 3, ch. 94-350; s. 3, ch. 96-291; s. 87, ch. 98-166; s. 162, ch. 99-251; s. 2, ch. 99-350; s. 146, ch. 2000-160; s. 2, ch. 2008-28.
(1) A person shall not manage or hold herself or himself out to the public as being able to manage a community association in this state unless she or he is licensed by the department in accordance with the provisions of this part. However, nothing in this part prohibits any person licensed in this state under any other law or court rule from engaging in the profession for which she or he is licensed.
History.—ss. 8, 14, ch. 87-343; s. 2, ch. 89-155; s. 4, ch. 91-429; s. 4, ch. 96-291; s. 1114, ch. 97-103; s. 3, ch. 2008-28; s. 58,
(1) A person desiring to be licensed as a community association manager shall apply to the department to take the licensure examination. Each applicant must file a complete set of fingerprints that have been taken by an authorized law enforcement officer, which set of fingerprints shall be submitted to the Department of Law Enforcement for state processing and to the Federal Bureau of Investigation for federal processing. The cost of processing shall be borne by the applicant.
History.—ss. 9, 14, ch. 87-343; s. 3, ch. 89-155; s. 4, ch. 91-429; s. 2, ch. 94-350; s. 5, ch. 96-291; s. 19, ch. 2000-356; s. 4, ch. 2008-28.
practice standards; liability.—
community association manager or a community association management
firm is deemed to act as agent on behalf of a community association as
principal within the scope of authority authorized by a written
contract or under this chapter. A community association manager and a
community association management firm shall discharge duties performed
on behalf of the association as authorized by this chapter loyally,
skillfully, and diligently; dealing honestly and fairly; in good
faith; with care and full disclosure to the community association;
accounting for all funds; and not charging unreasonable or excessive
contract between a community association and a community association
manager or a contract between a community association and a
community association management firm may provide that the community
association indemnifies and holds harmless the community association
manager and the community association management firm for ordinary
negligence resulting from the manager or management firm’s act or
omission that is the result of an instruction or direction of the
community association. This paragraph does not preclude any other
negotiated indemnity or hold harmless provision.
under paragraph (a) may not cover any act or omission that violates a
criminal law; derives an improper personal benefit, either directly or
indirectly; is grossly negligent; or is reckless, is in bad faith, is
with malicious purpose, or is in a manner exhibiting wanton and
willful disregard of human rights, safety, or property.
2, ch. 2014-146.
(1) A community association manager or a community association management firm is deemed to act as agent on behalf of a community association as principal within the scope of authority authorized by a written contract or under this chapter. A community association manager and a community association management firm shall discharge duties performed on behalf of the association as authorized by this chapter loyally, skillfully, and diligently; dealing honestly and fairly; in good faith; with care and full disclosure to the community association; accounting for all funds; and not charging unreasonable or excessive fees.
(2)(a) A contract between a community association and a community association manager or a contract between a community association and a community association management firm may provide that the community association indemnifies and holds harmless the community association manager and the community association management firm for ordinary negligence resulting from the manager or management firm’s act or omission that is the result of an instruction or direction of the community association. This paragraph does not preclude any other negotiated indemnity or hold harmless provision.
(b) Indemnification under paragraph (a) may not cover any act or omission that violates a criminal law; derives an improper personal benefit, either directly or indirectly; is grossly negligent; or is reckless, is in bad faith, is with malicious purpose, or is in a manner exhibiting wanton and willful disregard of human rights, safety, or property.
History.—s. 2, ch. 2014-146.
(1) The department shall renew a license upon receipt of the renewal application and fee and upon proof of compliance with the continuing education requirements of s. 468.4337.
(2) The department shall adopt rules establishing a procedure for the biennial renewal of licenses.
History.--s. 6, ch. 96-291.
The department may not renew a license until the licensee submits proof that the licensee has completed the requisite hours of continuing education. No more than 10 hours of continuing education annually shall be required for renewal of a license. The number of hours, criteria, and course content shall be approved by the council by rule.
History.--s. 7, ch. 96-291.
The council shall prescribe by rule continuing education requirements for reactivating a license. The continuing education requirements for reactivating a license may not exceed 10 classroom hours for each year the license was inactive.
History.--s. 8, ch. 96-291.
(1) The council shall, by rule, establish fees for the described purposes and within the ranges specified in this section:
History.—ss. 11, 14, ch. 87-343; s. 4, ch. 91-429; s. 9, ch. 96-291.
(1) The department shall investigate complaints and allegations of a violation of this part, chapter 455, or any rule adopted thereunder, filed against community association managers or firms and forwarded from other divisions under the Department of Business and Professional Regulation. After a complaint is received, the department shall conduct its inquiry with due regard to the interests of the affected parties. Within 30 days after receipt of a complaint, the department shall acknowledge the complaint in writing and notify the complainant whether or not the complaint is within the jurisdiction of the department and whether or not additional information is needed by the department from the complainant. The department shall conduct an investigation and shall, within 90 days after receipt of the original complaint or of a timely request for additional information, take action upon the complaint. However, the failure to complete the investigation within 90 days does not prevent the department from continuing the investigation, accepting or considering evidence obtained or received after 90 days, or taking administrative action if reasonable cause exists to believe that a violation of this part, chapter 455, or a rule of the department has occurred. If an investigation is not completed within the time limits established in this subsection, the department shall, on a monthly basis, notify the complainant in writing of the status of the investigation. When reporting its action to the complainant, the department shall inform the complainant of any right to a hearing pursuant to ss. 120.569 and 120.57.
History.—ss. 12, 14, ch. 87-343; s. 4, ch. 89-155; s. 4, ch. 91-429; s. 4, ch. 94-350; s. 10, ch. 96-291; s. 5, ch. 2008-28; s. 50, ch. 2009-195; s. 42, ch. 2010-106; s. 1, ch. 2013-218.
Notwithstanding s. 455.225, any complaint or record maintained by the Department of Business and Professional Regulation pursuant to the discipline of a licensed community association manager and any proceeding held by the department to discipline a licensed community association manager shall remain open and available to the public.
History.--s. 11, ch. 96-291.
Any person who violates any of the provisions of this part shall be guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
History.--ss. 13, 14, ch. 87-343; s. 4, ch. 91-429.
(1) The provisions of this section apply only to community association management performed by a management firm acting as managing entity of a timeshare plan pursuant to chapter 721.
(2) A timeshare management firm shall only be required to employ at least one individual licensed under this part at each noncontiguous geographic location at which the management firm provides community association management. No other person providing community association management on behalf of such management firms shall be required to hold a license pursuant to this part, provided that any community association management provided pursuant to this section must be performed under the direct supervision and control of a licensed community association manager. A community association manager licensed pursuant to this part and employed by a timeshare management firm pursuant to this section assumes responsibility for all community association management performed by unlicensed persons employed by the timeshare management firm.
History.--s. 6, ch. 94-350.
Standards of Professional Conduct.
licensees and registrants shall adhere to the following provisions and
standards of professional conduct, and such provisions and standards
shall be deemed automatically incorporated, as duties of all licensees
and registrants, into any written or oral agreement for the rendition of
community association management services, the violation of which shall
constitute gross misconduct or gross negligence:
Definitions. As used in this rule, the following definitions apply:
The word “control” means the authority to direct or prevent the
actions of another person or entity pursuant to law, contract,
subcontract or employment relationship, but shall specifically exclude a
licensee’s or registrant’s relationship with a community
association, its board of directors, any committee thereof or any member
of any board or committee.
“Licensee” means a person licensed pursuant to Section 468.432(1),
“Registrant” means an entity registered pursuant to Section
The word “funds” as used in this rule includes money and negotiable
instruments including checks, notes and securities.
Honesty. During the performance of management services, a licensee or
registrant shall not knowingly make an untrue statement of a material
fact or knowingly fail to state a material fact.
Professional Competence. A licensee or registrant shall undertake to
perform only those community association management services which he or
it can reasonably expect to complete with professional competence.
Due Professional Care.
A licensee or registrant shall exercise due professional care in the
performance of community association management services.
A licensee or registrant shall not knowingly fail to comply with the
requirements of the documents by which the association is created or
operated so long as such documents comply with the requirements of law.
Control of Others. A licensee or registrant shall not permit others
under his or its control to commit on his or its behalf, acts or
omissions which, if made by the licensee or registrant, would place him
or it in violation of Chapter 468, Part VIII, F.S., or Chapter 61-20,
F.A.C. A licensee or registrant shall be deemed responsible by the
department for the actions of all persons who perform community
association management related functions under his or its supervision or
A licensee or registrant shall not withhold possession of any original
books, records, accounts, funds, or other property of a community
association when requested by the community association to deliver the
same to the association upon reasonable notice. Reasonable notice shall
extend no later than 20 business days after receipt of a written request
from the association. The provisions of this rule apply regardless of
any contractual or other dispute between the licensee and the community
association, or between the registrant and the community association. It
shall be considered gross misconduct, as provided by Section 468.436(2),
F.S., for a licensee or registrant to violate the provisions of this
A licensee or registrant shall not deny access to association records,
for the purpose of inspecting or photocopying the same, to a person
entitled to such by law, to the extent and under the procedures set
forth in the applicable law.
A licensee or registrant shall not create false records or alter records
of a community association or of the licensee or registrant except in
such cases where an alteration is permitted by law (e.g., the correction
of minutes per direction given at a meeting at which the minutes are
submitted for approval).
A licensee or registrant shall not, to the extent charged with the
responsibility of maintaining records, fail to maintain his or its
records, and the records of any applicable community association, in
accordance with the laws and documents requiring or governing the
Financial Matters. A licensee or registrant shall use funds received by
him or it on the account of any community association or its members
only for the specific purpose or purposes for which the funds were
A licensee or registrant shall not commit acts of gross negligence or
gross misconduct in the pursuit of community association management or
any other profession for which a state or federal license is required or
permitted. It shall be presumed that gross negligence or gross
misconduct has been committed where a licensee’s or registrant’s
other professional license has been suspended or revoked for reasons
other than non-payment of dues or noncompliance with applicable
continuing education requirements.
A licensee or registrant shall not perform, agree to perform or hold
himself or itself out as being qualified to perform any services which,
under the laws of the State of Florida or of the United States, are to
be performed only by a person or entity holding the requisite license or
registration for same, unless the licensee or registrant also holds such
license or registration; provided, however, that no violation hereof
shall be deemed to have occurred unless and until the authority
administering the license or registration in question makes a final
determination that the licensee or registrant has failed to obtain a
license or registration in violation of the law requiring same.
A licensee or registrant shall reveal all other licenses or
registrations held by him or it under the laws of the State of Florida
or the United States, if, as a result of such license or registration, a
licensee or registrant receives any payment for services or goods from
the community association or its board.
Violation of any provision of Section 455.227(1), F.S., or of any part
of this rule shall subject the licensee or registrant to disciplinary
measures as set out in Section 468.436, F.S.
Authority 468.4315(2) FS. Law Implemented 468.433, 468.436 FS.
History–New 5-5-88, Amended 2-5-91, Formerly 7D-55.007, 61B-55.007,
Amended 1-8-98, 5-31-99.