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PART
II
RIGHTS
AND OBLIGATIONS OF DEVELOPERS
719.202
Sales or reservation deposits prior to closing.
719.203
Warranties.
719.202
Sales or reservation deposits prior to closing.
(1) If
a developer contracts to sell a cooperative parcel and the construction,
furnishing, and landscaping of the property submitted or proposed to be
submitted to cooperative ownership has not been substantially completed in
accordance with the plans and specifications and representations made by
the developer in the disclosures required by this chapter, the developer
shall pay into an escrow account all payments up to 10 percent of the sale
price received by the developer from the buyer towards the sale price. The
escrow agent shall give to the purchaser a receipt for the deposit, upon
request. In lieu of the foregoing, the division director shall have the
discretion to accept other assurances, including, but not limited to, a
surety bond or an irrevocable letter of credit in an amount equal to the
escrow requirements of this section. Default determinations and refund of
deposits shall be governed by the escrow release provision of this
subsection. Funds shall be released from the escrow as follows:
(a) If
a buyer properly terminates the contract pursuant to its terms or pursuant
to this chapter, the funds shall be paid to the buyer together with any
interest earned.
(b) If
the buyer defaults in the performance of his or her obligations under the
contract of purchase and sale, the funds shall be paid to the developer
together with any interest earned.
(c) If
the contract does not provide for the payment of any interest earned on
the escrowed funds, interest shall be paid to the developer at the closing
of the transaction.
(d) If
the funds of a buyer have not been previously disbursed in accordance with
the provisions of this subsection, they may be disbursed to the developer
by the escrow agent at the closing of the transaction, unless prior to the
disbursement the escrow agent receives from the buyer written notice of a
dispute between the buyer and developer.
(2) All
payments in excess of the 10 percent of the sale price described in
subsection (1) received prior to completion of construction by the
developer from the buyer on a contract for purchase of a cooperative
parcel shall be held in a special escrow account established as provided
in subsection (1) and controlled by an escrow agent and may not be used by
the developer prior to closing the transaction, except as provided in
subsection (3) or except for refund to the buyer. If the money remains in
this special account for more than 3 months and earns interest, the
interest shall be paid as provided in subsection (1).
(3) If
the contract for sale of the cooperative so provides, the developer may
withdraw escrow funds in excess of 10 percent of the purchase price from
the special account required by subsection (2) when the construction of
improvements has begun. The developer may use the funds in the actual
construction and development of the cooperative property in which the unit
to be sold is located. However, no part of these funds may be used for
salaries, commissions, or expenses of salespersons or for advertising
purposes. A contract which permits use of the advance payments for these
purposes shall include the following legend conspicuously printed or
stamped in boldfaced type on the first page of the contract and
immediately above the place for signature of the buyer: ANY PAYMENT IN
EXCESS OF 10 PERCENT OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO
CLOSING PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES BY
THE DEVELOPER.
(4) "Completion
of construction" means issuance of a certificate of occupancy for the
entire building or improvement, or the equivalent authorization issued by
the governmental body having jurisdiction, and in jurisdictions where no
certificate of occupancy or equivalent authorization is issued, it means
substantial completion of construction, finishing, and equipping of the
building or improvements according to the plans and specifications.
(5) Failure
to comply with the provisions of this section renders the contract
voidable by the buyer, and, if voided, all sums deposited or advanced
under the contract shall be refunded with interest at the highest rate
then being paid on savings accounts, excluding certificates of deposit, by
savings and loan associations in the area in which the cooperative
property is located.
(6) If
a developer enters into a reservation agreement, the developer shall pay
into an escrow account all reservation deposit payments. Reservation
deposits shall be payable to the escrow agent, who shall give to the
prospective purchaser a receipt for the deposit, acknowledging that the
deposit is being held pursuant to the requirements of this subsection. The
funds may be placed in either interest-bearing or non-interest-bearing
accounts, provided that the funds shall at all reasonable times be
available for withdrawal in full by the escrow agent. The developer shall
maintain separate records for each cooperative parcel or proposed
cooperative parcel for which deposits are being accepted. Upon written
request to the escrow agent by the prospective purchaser or developer, the
fund shall be immediately and without qualification refunded in full to
the prospective purchaser. Upon such refund, any interest shall be paid to
the prospective purchaser, unless otherwise provided in the reservation
agreement. A reservation deposit shall not be released directly to the
developer except as a down payment on the purchase price simultaneously
with or subsequent to the execution of a contract. Upon the execution of a
purchase agreement for a unit, any funds paid by the purchaser as a
deposit to reserve the unit pursuant to a reservation agreement, and any
interest thereon, shall cease to be subject to the provisions of this
subsection and shall instead be subject to the provisions of subsections
(1)-(5).
(7) Any
developer who willfully fails to comply with the provisions of this
section concerning establishment of an escrow account or deposit of funds
into escrow or withdrawal therefrom is guilty of a felony of the third
degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
The failure to establish an escrow account or to place funds therein shall
be prima facie evidence of an intentional and purposeful violation of this
section.
(8) Each
escrow account required by this section shall be established with a bank,
a savings and loan association, an attorney who is a member of The Florida
Bar, a real estate broker registered under chapter 475, or any financial
lending institution having a net worth in excess of $5 million. The escrow
agent shall not be located outside the state unless, pursuant to the
escrow agreement, the escrow agent submits to the jurisdiction of the
division and the courts of this state for any cause of action arising from
the escrow. Each escrow agent shall be independent of the developer, and
no developer or any officer, director, affiliate, subsidiary, or employee
thereof may serve as escrow agent. Escrow funds may be invested only in
securities of the United States or any agency thereof or in accounts in
institutions the deposits of which are insured by an agency of the United
States.
(9) Any
developer who is subject to the provisions of this section shall not be
subject to the provisions of s. 501.1375.
History.--s.
2, ch. 76-222; s. 4, ch. 79-284; s. 11, ch. 81-185; s. 24, ch. 86-175; s.
878, ch. 97-102.
719.203
Warranties.
(1) The
developer shall be deemed to have granted to
the purchaser of each parcel an implied
warranty of fitness and merchantability for
the purposes or uses intended as follows:
(a) As
to each unit, a warranty for 3 years
commencing with the completion of the
building containing the unit.
(b) As
to the personal property that is
transferred with, or appurtenant to,
each unit, a warranty which is for the
same period as that provided by the
manufacturer of the personal property,
commencing with the date of closing of
the purchase or the date of possession
of the unit, whichever is earlier.
(c) As
to all other improvements for the use of
unit owners, a 3-year warranty
commencing with the date of completion
of the improvements.
(d) As
to all other personal property for the
use of unit owners, a warranty which
shall be the same as that provided by
the manufacturer of the personal
property.
(e) As
to the roof and structural components of
a building or other improvements and as
to mechanical, electrical, and plumbing
elements serving improvements or a
building, except mechanical elements
serving only one unit, a warranty for a
period beginning with the completion of
construction of each building or
improvement and continuing for 3 years
thereafter or 1 year after owners other
than the developer obtain control of the
association, whichever occurs last, but
in no event continuing for more than 5
years.
(f) As
to all other property which is conveyed
with a unit, a warranty to the initial
purchaser of each unit for a period of 1
year from the date of closing of the
purchase or the date of possession,
whichever occurs first.
(2) The
contractor and all subcontractors and
suppliers grant to the developer and to the
purchaser of each unit implied warranties of
fitness as to the work performed or
materials supplied by them as follows:
(a) For
a period of 3 years from the date of
completion of construction of a building
or improvement, a warranty as to the
roof and structural components of the
building or improvement and mechanical
and plumbing elements serving a building
or an improvement, except mechanical
elements serving only one unit.
(b) For
a period of 1 year after completion of
all construction, a warranty as to all
other improvements and materials.
(3) “Completion
of a building or improvement” means issuance
of a certificate of occupancy, whether
temporary or otherwise, that allows for
occupancy or use of the entire building or
improvement, or an equivalent authorization
issued by the governmental body having
jurisdiction. In jurisdictions where no
certificate of occupancy or equivalent
authorization is issued, the term means
substantial completion of construction,
finishing, and equipping of the building or
improvement according to the plans and
specifications.
(4) These
warranties are conditioned upon routine
maintenance being performed, unless the
maintenance is the obligation of the
developer or a developer-controlled
association.
(5) The
warranties provided by this section shall
inure to the benefit of each owner and his
or her successor owners and to the benefit
of the developer.
(6) Nothing
in this section affects a cooperative as to
which rights are established by contracts
for sale of 10 percent or more of the units
in the cooperative by the developer to
prospective unit owners prior to July 1,
1974, or as to cooperative buildings on
which construction has been commenced prior
to July 1, 1974.
History.—s.
1, ch. 76-222; s. 6, ch. 79-284; s. 25, ch.
86-175; s. 879, ch. 97-102; s. 5, ch.
2015-165.
PART
III
RIGHTS
AND OBLIGATIONS OF ASSOCIATION
719.301
Transfer of association control.
719.302
Agreements entered into by the association.
719.3026
Contracts for products and services; in writing; bids; exceptions.
719.303
Obligations of owners.
719.304
Association's right to amend cooperative documents.
719.301
Transfer of association control.--
(1) When
unit owners other than the developer own 15 percent or more of the units
in a cooperative that will be operated ultimately by an association, the
unit owners other than the developer shall be entitled to elect not less
than one-third of the members of the board of administration of the
association. Unit owners other than the developer are entitled to elect
not less than a majority of the members of the board of administration of
an association:
(a) Three
years after 50 percent of the units that will be operated ultimately by
the association have been conveyed to purchasers;
(b) Three
months after 90 percent of the units that will be operated ultimately by
the association have been conveyed to purchasers;
(c) When
all the units that will be operated ultimately by the association have
been completed, some have been conveyed to purchasers, and none of the
others are being offered for sale by the developer in the ordinary course
of business;
(d) When
some of the units have been conveyed to purchasers and none of the others
are being constructed or offered for sale by the developer in the ordinary
course of business; or
(e) Seven
years after creation of the cooperative association,
whichever occurs first. The developer is entitled to elect at least one
member of the board of administration of an association as long as the
developer holds for sale in the ordinary course of business at least 5
percent in cooperatives with fewer than 500 units and 2 percent in
cooperatives with 500 or more units in a cooperative operated by the
association. After the developer relinquishes control of the association,
the developer may exercise the right to vote any developer-owned units in
the same manner as any other unit owner except for purposes of reacquiring
control of the association or selecting the majority of the members of the
board.
(2) Within
75 days after the unit owners other than the developer are entitled to
elect a member or members of the board of administration of an
association, the association shall call, and give not less than 60 days'
notice of, an election for the members of the board of administration. The
election shall proceed as provided in s. 719.106(1)(d). The notice may be
given by any unit owner if the association fails to do so. Upon election
of the first unit owner other than the developer to the board of
administration, the developer shall forward to the division the name and
mailing address of the unit owner board member.
(3) If
a developer holds units for sale in the ordinary course of business, none
of the following actions may be taken without approval in writing by the
developer:
(a) Assessment
of the developer as a unit owner for capital improvements.
(b) Any
action by the association that would be detrimental to the sales of units
by the developer. However, an increase in assessments for common expenses
without discrimination against the developer shall not be deemed to be
detrimental to the sales of units.
(4) When
unit owners other than the developer elect a majority of the members of
the board of administration of an association, the developer shall
relinquish control of the association, and the unit owners shall accept
control. Simultaneously, or for the purpose of paragraph (c) not more than
90 days thereafter, the developer shall deliver to the association, at the
developer's expense, all property of the unit owners and of the
association held or controlled by the developer, including, but not
limited to, the following items, if applicable, as to each cooperative
operated by the association:
(a)1. The
original or a photocopy of the recorded cooperative documents and all
amendments thereto. If a photocopy is provided, it shall be certified by
affidavit of the developer, or an officer or agent of the developer, as
being a complete copy of the actual recorded cooperative documents.
2. A
certified copy of the association's articles of incorporation, or if it is
not incorporated, then copies of the documents creating the association.
3. A
copy of the bylaws.
4. The
minute books, including all minutes, and other books and records of the
association, if any.
5. Any
house rules and regulations which have been promulgated.
(b) Resignations
of officers and members of the board of administration who are required to
resign because the developer is required to relinquish control of the
association.
(c) The
financial records, including financial statements of the association, and
source documents since the incorporation of the association through the
date of turnover. The records shall be audited for the period of the
incorporation of the association or for the period covered by the last
audit, if an audit has been performed for each fiscal year since
incorporation, by an independent certified public accountant. All
financial statements shall be prepared in accordance with generally
accepted accounting standards and shall be audited in accordance with
generally accepted auditing standards as prescribed by the Board of
Accountancy. The accountant performing the review shall examine to the
extent necessary supporting documents and records, including the cash
disbursements and related paid invoices to determine if expenditures were
for association purposes and the billings, cash receipts, and related
records to determine that the developer was charged and paid the proper
amounts of assessments.
(d) Association
funds or control thereof.
(e) All
tangible personal property that is property of the association,
represented by the developer to be part of the common areas or ostensibly
part of the common areas, and an inventory of that property.
(f) A
copy of the plans and specifications utilized in the construction or
remodeling of improvements and the supplying of equipment to the
cooperative and in the construction and installation of all mechanical
components serving the improvements and the site, with a certificate in
affidavit form of the developer, the developer's agent, or an architect or
engineer authorized to practice in this state that such plans and
specifications represent, to the best of their knowledge and belief, the
actual plans and specifications utilized in the construction and
improvement of the cooperative property and for the construction and
installation of the mechanical components serving the improvements. If the
cooperative property has been organized as a cooperative more than 3 years
after the completion of construction or remodeling of the improvements,
the requirements of this paragraph shall not apply.
(g) A
list of the names and addresses, of which the developer had knowledge at
any time in the development of the cooperative, of all contractors,
subcontractors, and suppliers utilized in the construction or remodeling
of the improvements and in the landscaping.
(h) Insurance
policies.
(i) Copies
of any certificates of occupancy which may have been issued for the
cooperative property.
(j) Any
other permits issued by governmental bodies applicable to the cooperative
property in force or issued within 1 year prior to the date the unit
owners other than the developer take control of the association.
(k) All
written warranties of the contractor, subcontractors, suppliers, and
manufacturers, if any, that are still effective.
(l) A
roster of unit owners and their addresses and telephone numbers, if known,
as shown on the developer's records.
(m) Leases
of the common areas and other leases to which the association is a party.
(n) Employment
contracts or service contracts in which the association is one of the
contracting parties or service contracts in which the association or the
unit owners have an obligation or responsibility, directly or indirectly,
to pay some or all of the fee or charge of the person or persons
performing the service.
(o) All
other contracts to which the association is a party.
(5) If,
during the period prior to the time the developer relinquishes control of
the association pursuant to subsection (4), any provision of the
Cooperative Act or any rule adopted thereunder is violated by the
association, the developer shall be responsible for such violation and
shall be subject to the administrative action provided in this chapter for
such violation, and the developer shall be liable to third parties for
such violation. This subsection is intended to clarify existing law.
(6) The
division may adopt rules administering the provisions of this section.
History.--s.
2, ch. 76-222; s. 7, ch. 79-284; s. 12, ch. 81-185; s. 26, ch. 86-175; s.
25, ch. 92-49; s. 880, ch. 97-102; s. 12, ch. 98-322.
719.302
Agreements entered into by the association.--
(1) Any
grant or reservation made by a cooperative document, lease, or other
document, and any contract made by an association prior to assumption of
control of the association by unit owners other than the developer, that
provides for operation, maintenance, or management of a cooperative
association or property serving the unit owners of a cooperative shall be
fair and reasonable and may be canceled by unit owners other than the
developer:
(a) If
the association operates only one cooperative and the unit owners other
than the developer have assumed control of the association, or if unit
owners other than the developer own not less than 75 percent of the voting
interests in the cooperative, the cancellation shall be by concurrence of
the owners of not less than 75 percent of the voting interests other than
the voting interests owned by the developer. If a grant, reservation, or
contract is so canceled and the unit owners other than the developer have
not assumed control of the association, the association shall make a new
contract or otherwise provide for maintenance, management, or operation in
lieu of the canceled obligation, at the direction of the owners of not
less than a majority of the voting interests in the cooperative other than
the voting interests owned by the developer.
(b) If
the association operates more than one cooperative and the unit owners
other than the developer have not assumed control of the association, and
if unit owners other than the developer own at least 75 percent of the
voting interests in a cooperative operated by the association, any grant,
reservation, or contract for maintenance, management, or operation of
buildings containing the units in that cooperative or of improvements used
only by unit owners of that cooperative may be canceled by concurrence of
the owners of at least 75 percent of the voting interests in the
cooperative other than the voting interests owned by the developer. No
grant, reservation, or contract for maintenance, management, or operation
of recreational areas or any other property serving more than one
cooperative, and operated by more than one association, may be canceled
except pursuant to paragraph (d).
(c) If
the association operates more than one cooperative and the unit owners
other than the developer have assumed control of the association, the
cancellation shall be by concurrence of the owners of not less than 75
percent of the total number of voting interests in all cooperatives
operated by the association other than the voting interests owned by the
developer.
(d) If
the owners of units in a cooperative have the right to use property in
common with owners of units in other cooperatives and those cooperatives
are operated by more than one association, no grant, reservation, or
contract for maintenance, management, or operation of the property serving
more than one cooperative may be canceled until unit owners other than the
developer have assumed control of all of the associations operating the
cooperatives that are to be served by the recreational area or other
property, after which cancellation may be effected by concurrence of the
owners of not less than 75 percent of the total number of voting interests
in those cooperatives other than voting interests owned by the developer.
(2) Any
grant or reservation made by a cooperative document, lease, or other
document, or any contract made by the developer or association prior to
the time unit owners other than the developer elect a majority of the
board of administration, which requires the association to purchase
cooperative property or to lease cooperative property to another party
shall be deemed ratified unless rejected by a majority of the voting
interests of unit owners other than the developer within 18 months after
unit owners other than the developer elect a majority of the board of
administration. This subsection does not apply to any grant or reservation
made by a declaration whereby persons other than the developer or the
developer's heirs, assigns, affiliates, directors, officers, or employees
are granted the right to use the cooperative property, so long as such
persons are obligated to pay, at a minimum, a proportionate share of the
cost associated with such property.
(3) Any
grant or reservation made by a cooperative document, lease, or other
document, and any contract made by an association, whether before or after
assumption of control of the association by unit owners other than the
developer, that provides for operation, maintenance, or management of a
cooperative association or property serving the unit owners of a
cooperative shall not be in conflict with the powers and duties of the
association or the rights of unit owners as provided in this chapter. This
subsection is intended only as a clarification of existing law.
(4) Any
grant or reservation made by a cooperative document, lease, or other
document, and any contract made by an association prior to assumption of
control of the association by unit owners other than the developer, shall
be fair and reasonable.
(5) It
is declared that the public policy of this state prohibits the inclusion
or enforcement of escalation clauses in management contracts for
cooperatives, and such clauses are hereby declared void for public policy.
For the purposes of this section, an escalation clause is any clause in a
cooperative management contract which provides that the fee under the
contract shall increase at the same percentage rate as any nationally
recognized and conveniently available commodity or consumer price index.
(6) Any
action to compel compliance with the provisions of this section or of s.
719.301 may be brought pursuant to the summary procedure provided for in
s. 51.011. In any such action brought to compel compliance with the
provisions of s. 719.301, the prevailing party shall be entitled to
recover reasonable attorney's fees.
History.--s.
2, ch. 76-222; s. 1, ch. 77-174; s. 8, ch. 79-284; s. 27, ch. 86-175; s.
881, ch. 97-102.
719.3026
Contracts for products and services; in writing; bids; exceptions.
Associations
with less than 100 units may opt out of the provisions of this section if
two-thirds of the unit owners vote to do so, which opt-out may be
accomplished by a proxy specifically setting forth the exception from this
section.
(1) All
contracts as further described herein or any contract that is not to be
fully performed within 1 year after the making thereof, for the purchase,
lease, or renting of materials or equipment to be used by the association
in accomplishing its purposes under this chapter, and all contracts for
the provision of services, shall be in writing. If a contract for the
purchase, lease, or renting of materials or equipment, or for the
provision of services, requires payment by the association in an amount
which in the aggregate exceeds 5 percent of the association's budget,
including reserves, the association shall obtain competitive bids for the
materials, equipment, or services. Nothing contained herein shall be
construed to require the association to accept the lowest bid.
(2)(a)1. Notwithstanding
the foregoing, contracts with employees of the association, and contracts
for attorney, accountant, architect, community association manager,
timeshare management firm, engineering, and landscape architect services
shall not be subject to the provisions of this section.
2. A
contract executed before January 1, 1992, and any renewal thereof, is not
subject to the competitive bid requirements of this section. If a contract
was awarded under the competitive bid procedures of this section, any
renewal of that contract is not subject to such competitive bid
requirements if the contract contains a provision that allows the board to
cancel the contract on 30 days' notice. Materials, equipment, or services
provided to a cooperative pursuant to a local government franchise
agreement by a franchise holder are not subject to the competitive bid
requirement. A contract with a manager, if made by a competitive bid, may
be made for up to 3 years. A condominium whose declaration or bylaws
provides for competitive bidding for services may operate under the
provisions of that declaration or bylaws in lieu of this section if those
provisions are not less stringent than the requirements of this section.
(b) This
section does not limit the ability of an association to obtain needed
products and services in an emergency.
(c) This
section does not apply if the business entity with which the association
desires to enter into a contract is the only source of supply within the
county serving the association.
History.--s.
26, ch. 92-49; s. 4, ch. 2000-302.
719.303
Obligations of owners.--
(1) Each
unit owner, each tenant and other invitee, and
each association shall be governed by, and shall
comply with the provisions of, this chapter, the
cooperative documents, the documents creating
the association, and the association bylaws, and
the provisions thereof shall be deemed expressly
incorporated into any lease of a unit. Actions
for damages or for injunctive relief, or both,
for failure to comply with these provisions may
be brought by the association or by a unit owner
against:
(c) Directors
designated by the developer, for actions
taken by them prior to the time control of
the association is assumed by unit owners
other than the developer.
(d) Any
director who willfully and knowingly fails
to comply with these provisions.
(e) Any
tenant leasing a unit, and any other invitee
occupying a unit.
The prevailing party in any
such action or in any action in which the
purchaser claims a right of voidability based
upon contractual provisions as required in s.
719.503(1)(a) is entitled to recover
reasonable attorney’s fees. A unit owner
prevailing in an action between the association
and the unit owner under this section, in
addition to recovering his or her reasonable
attorney’s fees, may recover additional amounts
as determined by the court to be necessary to
reimburse the unit owner for his or her share of
assessments levied by the association to fund
its expenses of the litigation. This relief does
not exclude other remedies provided by law.
Actions arising under this subsection shall not
be deemed to be actions for specific
performance.
(2) A
provision of this chapter may not be waived if
the waiver would adversely affect the rights of
a unit owner or the purpose of the provision,
except that unit owners or members of a board of
administration may waive notice of specific
meetings in writing if provided by the bylaws.
Any instrument given in writing by the unit
owner or purchaser to an escrow agent may be
relied upon by an escrow agent, whether or not
such instruction and the payment of funds
thereunder might constitute a waiver of any
provision of this chapter.
(3) The
association may levy reasonable fines for
failure of the unit owner or the unit’s
occupant, licensee, or invitee to comply with
any provision of the cooperative documents or
reasonable rules of the association. A fine may
not become a lien against a unit. A fine may be
levied by the board on the basis of each day of
a continuing violation, with a single notice and
opportunity for hearing before a committee as
provided in paragraph (b). However, the fine may
not exceed $100 per violation, or $1,000 in the
aggregate.
(a) An
association may suspend, for a reasonable
period of time, the right of a unit owner,
or a unit owner’s tenant, guest, or invitee,
to use the common elements, common
facilities, or any other association
property for failure to comply with any
provision of the cooperative documents or
reasonable rules of the association. This
paragraph does not apply to limited common
elements intended to be used only by that
unit, common elements needed to access the
unit, utility services provided to the unit,
parking spaces, or elevators.
(b) A
fine or suspension levied by the board of
administration may not be imposed unless the
board first provides at least 14 days’
written notice to the unit owner and, if
applicable, any occupant, licensee, or
invitee of the unit owner sought to be fined
or suspended and an opportunity for a
hearing before a committee of at least three
members appointed by the board who are not
officers, directors, or employees of the
association, or the spouse, parent, child,
brother, or sister of an officer, director,
or employee. The role of the committee is
limited to determining whether to confirm or
reject the fine or suspension levied by the
board. If the committee does not approve the
proposed fine or suspension by majority
vote, the fine or suspension may not be
imposed. If the proposed fine or suspension
is approved by the committee, the fine
payment is due 5 days after the date of the
committee meeting at which the fine is
approved. The association must provide
written notice of such fine or suspension by
mail or hand delivery to the unit owner and,
if applicable, to any tenant, licensee, or
invitee of the unit owner.
(4) If
a unit owner is more than 90 days delinquent in
paying a monetary obligation due to the
association, the association may suspend the
right of the unit owner or the unit’s occupant,
licensee, or invitee to use common elements,
common facilities, or any other association
property until the monetary obligation is paid
in full. This subsection does not apply to
limited common elements intended to be used only
by that unit, common elements needed to access
the unit, utility services provided to the unit,
parking spaces, or elevators. The notice and
hearing requirements under subsection (3) do not
apply to suspensions imposed under this
subsection.
(5) An
association may suspend the voting rights of a
unit or member due to nonpayment of any monetary
obligation due to the association which is more
than 90 days delinquent. A voting interest or
consent right allocated to a unit or member
which has been suspended by the association may
not be counted towards the total number of
voting interests for any purpose, including, but
not limited to, the number of voting interests
necessary to constitute a quorum, the number of
voting interests required to conduct an
election, or the number of voting interests
required to approve an action under this chapter
or pursuant to the cooperative documents,
articles of incorporation, or bylaws. The
suspension ends upon full payment of all
obligations currently due or overdue the
association. The notice and hearing requirements
under subsection (3) do not apply to a
suspension imposed under this subsection.
(6) All
suspensions imposed pursuant to subsection (4)
or subsection (5) must be approved at a properly
noticed board meeting. Upon approval, the
association must notify the unit owner and, if
applicable, the unit’s occupant, licensee, or
invitee by mail or hand delivery.
History.—s.
2, ch. 76-222; s. 1, ch. 77-174; s. 28, ch. 86-175; s. 6, ch. 87-117; s.
27, ch. 92-49; s. 882, ch. 97-102; s. 15, ch. 2003-14; s. 15, ch.
2011-196; s. 13, ch. 2013-188; s. 14, ch. 2015-97; s. 12, ch. 2018-96. 719.304
Association's right to amend cooperative documents.--
(1) If
there is an omission or error in any cooperative document, or in other
documents required by law to establish the cooperative, the association
may correct the error or omission by an amendment to the cooperative
document, or the other documents required to create a cooperative, in the
manner provided in the document to amend the document, or, if none is
provided, then by vote of a majority of the voting interests. The
amendment is effective when passed and approved. This procedure for
amendment cannot be used if such an amendment would materially or
adversely affect property rights of unit owners, unless the affected
owners consent in writing. This subsection does not restrict the powers of
the association to otherwise amend the cooperative documents, or other
documentation, but authorizes a simple process of amendment requiring a
lesser vote for the purpose of curing defects, errors, or omissions when
the property rights of unit owners are not materially or adversely
affected.
(2) If
there is an omission or error in a cooperative document, or other
documents required to establish the cooperative, which would affect the
valid existence of the cooperative and which may not be corrected by the
amendment procedures in the cooperative documents or this chapter, then
the circuit courts have jurisdiction to entertain petitions of one or more
of the unit owners therein, or of the association, to correct the error or
omission, and the action may be a class action. The court may require that
one or more methods of correcting the error or omission be submitted to
the unit owners to determine the most acceptable correction. All unit
owners and the association and mortgagees of a first mortgage of record
must be joined as parties to the action. Service of process on owners may
be by publication, but the plaintiff shall furnish all unit owners not
personally served with process with copies of the petition and final
decree of the court by certified mail, return receipt requested, at their
last known residence address. If an action to determine whether the
cooperative documents or other documents comply with the mandatory
requirements for the formation of a cooperative contained in this chapter
is not brought within 3 years of the filing of the cooperative documents,
the cooperative documents and other documents shall be effective under
this chapter to create a cooperative, whether or not the documents
substantially comply with the mandatory requirements of this chapter.
However, both before and after the expiration of this 3-year period,
circuit courts have jurisdiction to entertain petitions permitted under
this subsection for the correction of the documentation, and other methods
of amendment may be utilized to correct the errors or omissions at any
time.
History.--s.
2, ch. 76-222; s. 224, ch. 77-104; s. 29, ch. 86-175.
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