May 26, 2019
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CS/HB 327

A bill to be entitled
2An act relating to community associations; amending s.
3718.103, F.S.; revising the definition of the term
4"developer" to exclude a bulk assignee or bulk buyer;
5amending s. 718.501, F.S.; revising the jurisdiction of
6the Division of Florida Condominiums, Timeshares, and
7Mobile Homes to include bulk assignees and bulk buyers;
8creating part VII of ch. 718, F.S., relating to distressed
9condominium relief; providing a short title; providing
10legislative findings and intent; defining the terms "bulk
11assignee" and "bulk buyer"; providing for the assignment
12of developer rights to and the assumption of developer
13rights by a bulk assignee; specifying liabilities of bulk
14assignees and bulk buyers; providing exceptions; providing
15additional responsibilities of bulk assignees and bulk
16buyers; authorizing certain entities to assign developer
17rights to a bulk assignee; limiting the number of bulk
18assignees at any given time; providing for the transfer of
19control of a board of administration; providing effects of
20such transfer on units acquired by a bulk assignee;
21providing obligations of a bulk assignee upon the transfer
22of control of a board of administration; requiring that a
23bulk assignee certify certain information in writing;
24providing for the resolution of a conflict between
25specified provisions of state law; providing that the
26failure of a bulk assignee or bulk buyer to comply with
27specified provisions of state law results in the loss of
28certain protections and exemptions; requiring that a bulk
29assignee or bulk buyer file certain information with the
30Division of Florida Condominiums, Timeshares, and Mobile
31Homes of the Department of Business and Professional
32Regulation before offering any units for sale or lease in
33excess of a specified term; requiring that a copy of such
34information be provided to a prospective purchaser;
35requiring that certain contracts and disclosure statements
36contain specified statements; requiring that a bulk
37assignee or bulk buyer comply with certain disclosure
38requirements; prohibiting a bulk assignee from taking
39certain actions on behalf of an association while the bulk
40assignee is in control of the board of administration of
41the association and requiring that such bulk assignee
42comply with certain requirements; requiring that a bulk
43assignee or bulk buyer comply with certain requirements
44regarding certain contracts; providing unit owners with
45specified protections regarding certain contracts;
46requiring that a bulk buyer comply with certain
47requirements regarding the transfer of a unit; prohibiting
48a person from being classified as a bulk assignee or bulk
49buyer unless condominium units were acquired before a
50specified date; providing for the determination of the
51date of acquisition of a unit; providing that the
52assignment of developer rights to a bulk assignee or bulk
53buyer does not release a developer from certain
54liabilities; preserving certain liabilities for certain
55parties; providing an effective date.
57Be It Enacted by the Legislature of the State of Florida:
59     Section 1.  Subsection (16) of section 718.103, Florida
60Statutes, is amended to read:
61     718.103  Definitions.-As used in this chapter, the term:
62     (16)  "Developer" means a person who creates a condominium
63or offers condominium units parcels for sale or lease in the
64ordinary course of business, but does not include:
65     (a)  An owner or lessee of a condominium or cooperative
66unit who has acquired the unit for his or her own occupancy;,
67nor does it include
68     (b)  A cooperative association that which creates a
69condominium by conversion of an existing residential cooperative
70after control of the association has been transferred to the
71unit owners if, following the conversion, the unit owners will
72be the same persons who were unit owners of the cooperative and
73no units are offered for sale or lease to the public as part of
74the plan of conversion;.
75     (c)  A bulk assignee or bulk buyer as defined in s.
76718.703; or
77     (d)  A state, county, or municipal entity is not a
78developer for any purposes under this act when it is acting as a
79lessor and not otherwise named as a developer in the declaration
80of condominium association.
81     Section 2.  Subsection (1) of section 718.501, Florida
82Statutes, is amended to read:
83     718.501  Authority, responsibility, and duties of Division
84of Florida Condominiums, Timeshares, and Mobile Homes.-
85     (1)  The Division of Florida Condominiums, Timeshares, and
86Mobile Homes of the Department of Business and Professional
87Regulation, referred to as the "division" in this part, has the
88power to enforce and ensure compliance with the provisions of
89this chapter and rules relating to the development,
90construction, sale, lease, ownership, operation, and management
91of residential condominium units. In performing its duties, the
92division has complete jurisdiction to investigate complaints and
93enforce compliance with the provisions of this chapter with
94respect to associations that are still under developer control
95or the control of a bulk assignee or bulk buyer pursuant to part
96VII of this chapter and complaints against developers, bulk
97assignees, or bulk buyers involving improper turnover or failure
98to turnover, pursuant to s. 718.301. However, after turnover has
99occurred, the division shall only have jurisdiction to
100investigate complaints related to financial issues, elections,
101and unit owner access to association records pursuant to s.
103     (a)1.  The division may make necessary public or private
104investigations within or outside this state to determine whether
105any person has violated this chapter or any rule or order
106hereunder, to aid in the enforcement of this chapter, or to aid
107in the adoption of rules or forms hereunder.
108     2.  The division may submit any official written report,
109worksheet, or other related paper, or a duly certified copy
110thereof, compiled, prepared, drafted, or otherwise made by and
111duly authenticated by a financial examiner or analyst to be
112admitted as competent evidence in any hearing in which the
113financial examiner or analyst is available for cross-examination
114and attests under oath that such documents were prepared as a
115result of an examination or inspection conducted pursuant to
116this chapter.
117     (b)  The division may require or permit any person to file
118a statement in writing, under oath or otherwise, as the division
119determines, as to the facts and circumstances concerning a
120matter to be investigated.
121     (c)  For the purpose of any investigation under this
122chapter, the division director or any officer or employee
123designated by the division director may administer oaths or
124affirmations, subpoena witnesses and compel their attendance,
125take evidence, and require the production of any matter which is
126relevant to the investigation, including the existence,
127description, nature, custody, condition, and location of any
128books, documents, or other tangible things and the identity and
129location of persons having knowledge of relevant facts or any
130other matter reasonably calculated to lead to the discovery of
131material evidence. Upon the failure by a person to obey a
132subpoena or to answer questions propounded by the investigating
133officer and upon reasonable notice to all persons affected
134thereby, the division may apply to the circuit court for an
135order compelling compliance.
136     (d)  Notwithstanding any remedies available to unit owners
137and associations, if the division has reasonable cause to
138believe that a violation of any provision of this chapter or
139related rule has occurred, the division may institute
140enforcement proceedings in its own name against any developer,
141bulk assignee, bulk buyer, association, officer, or member of
142the board of administration, or its assignees or agents, as
144     1.  The division may permit a person whose conduct or
145actions may be under investigation to waive formal proceedings
146and enter into a consent proceeding whereby orders, rules, or
147letters of censure or warning, whether formal or informal, may
148be entered against the person.
149     2.  The division may issue an order requiring the
150developer, bulk assignee, bulk buyer, association, developer-
151designated officer, or developer-designated member of the board
152of administration, developer-designated assignees or agents,
153bulk assignee-designated assignees or agents, bulk buyer-
154designated assignees or agents, community association manager,
155or community association management firm to cease and desist
156from the unlawful practice and take such affirmative action as
157in the judgment of the division will carry out the purposes of
158this chapter. If the division finds that a developer, bulk
159assignee, bulk buyer, association, officer, or member of the
160board of administration, or its assignees or agents, is
161violating or is about to violate any provision of this chapter,
162any rule adopted or order issued by the division, or any written
163agreement entered into with the division, and presents an
164immediate danger to the public requiring an immediate final
165order, it may issue an emergency cease and desist order reciting
166with particularity the facts underlying such findings. The
167emergency cease and desist order is effective for 90 days. If
168the division begins nonemergency cease and desist proceedings,
169the emergency cease and desist order remains effective until the
170conclusion of the proceedings under ss. 120.569 and 120.57.
171     3.  If a developer, bulk assignee, or bulk buyer fails to
172pay any restitution determined by the division to be owed, plus
173any accrued interest at the highest rate permitted by law,
174within 30 days after expiration of any appellate time period of
175a final order requiring payment of restitution or the conclusion
176of any appeal thereof, whichever is later, the division shall
177bring an action in circuit or county court on behalf of any
178association, class of unit owners, lessees, or purchasers for
179restitution, declaratory relief, injunctive relief, or any other
180available remedy. The division may also temporarily revoke its
181acceptance of the filing for the developer to which the
182restitution relates until payment of restitution is made.
183     4.  The division may petition the court for the appointment
184of a receiver or conservator. If appointed, the receiver or
185conservator may take action to implement the court order to
186ensure the performance of the order and to remedy any breach
187thereof. In addition to all other means provided by law for the
188enforcement of an injunction or temporary restraining order, the
189circuit court may impound or sequester the property of a party
190defendant, including books, papers, documents, and related
191records, and allow the examination and use of the property by
192the division and a court-appointed receiver or conservator.
193     5.  The division may apply to the circuit court for an
194order of restitution whereby the defendant in an action brought
195pursuant to subparagraph 4. shall be ordered to make restitution
196of those sums shown by the division to have been obtained by the
197defendant in violation of this chapter. Such restitution shall,
198at the option of the court, be payable to the conservator or
199receiver appointed pursuant to subparagraph 4. or directly to
200the persons whose funds or assets were obtained in violation of
201this chapter.
202     6.  The division may impose a civil penalty against a
203developer, bulk assignee, bulk buyer, or association, or its
204assignee or agent, for any violation of this chapter or a rule
205adopted under this chapter. The division may impose a civil
206penalty individually against any officer or board member who
207willfully and knowingly violates a provision of this chapter,
208adopted rule, or a final order of the division; may order the
209removal of such individual as an officer or from the board of
210administration or as an officer of the association; and may
211prohibit such individual from serving as an officer or on the
212board of a community association for a period of time. The term
213"willfully and knowingly" means that the division informed the
214officer or board member that his or her action or intended
215action violates this chapter, a rule adopted under this chapter,
216or a final order of the division and that the officer or board
217member refused to comply with the requirements of this chapter,
218a rule adopted under this chapter, or a final order of the
219division. The division, prior to initiating formal agency action
220under chapter 120, shall afford the officer or board member an
221opportunity to voluntarily comply with this chapter, a rule
222adopted under this chapter, or a final order of the division. An
223officer or board member who complies within 10 days is not
224subject to a civil penalty. A penalty may be imposed on the
225basis of each day of continuing violation, but in no event shall
226the penalty for any offense exceed $5,000. By January 1, 1998,
227the division shall adopt, by rule, penalty guidelines applicable
228to possible violations or to categories of violations of this
229chapter or rules adopted by the division. The guidelines must
230specify a meaningful range of civil penalties for each such
231violation of the statute and rules and must be based upon the
232harm caused by the violation, the repetition of the violation,
233and upon such other factors deemed relevant by the division. For
234example, the division may consider whether the violations were
235committed by a developer, bulk assignee, bulk buyer, or owner-
236controlled association, the size of the association, and other
237factors. The guidelines must designate the possible mitigating
238or aggravating circumstances that justify a departure from the
239range of penalties provided by the rules. It is the legislative
240intent that minor violations be distinguished from those which
241endanger the health, safety, or welfare of the condominium
242residents or other persons and that such guidelines provide
243reasonable and meaningful notice to the public of likely
244penalties that may be imposed for proscribed conduct. This
245subsection does not limit the ability of the division to
246informally dispose of administrative actions or complaints by
247stipulation, agreed settlement, or consent order. All amounts
248collected shall be deposited with the Chief Financial Officer to
249the credit of the Division of Florida Condominiums, Timeshares,
250and Mobile Homes Trust Fund. If a developer, bulk assignee, or
251bulk buyer fails to pay the civil penalty and the amount deemed
252to be owed to the association, the division shall issue an order
253directing that such developer, bulk assignee, or bulk buyer
254cease and desist from further operation until such time as the
255civil penalty is paid or may pursue enforcement of the penalty
256in a court of competent jurisdiction. If an association fails to
257pay the civil penalty, the division shall pursue enforcement in
258a court of competent jurisdiction, and the order imposing the
259civil penalty or the cease and desist order will not become
260effective until 20 days after the date of such order. Any action
261commenced by the division shall be brought in the county in
262which the division has its executive offices or in the county
263where the violation occurred.
264     7.  If a unit owner presents the division with proof that
265the unit owner has requested access to official records in
266writing by certified mail, and that after 10 days the unit owner
267again made the same request for access to official records in
268writing by certified mail, and that more than 10 days has
269elapsed since the second request and the association has still
270failed or refused to provide access to official records as
271required by this chapter, the division shall issue a subpoena
272requiring production of the requested records where the records
273are kept pursuant to s. 718.112.
274     8.  In addition to subparagraph 6., the division may seek
275the imposition of a civil penalty through the circuit court for
276any violation for which the division may issue a notice to show
277cause under paragraph (r). The civil penalty shall be at least
278$500 but no more than $5,000 for each violation. The court may
279also award to the prevailing party court costs and reasonable
280attorney's fees and, if the division prevails, may also award
281reasonable costs of investigation.
282     (e)  The division may prepare and disseminate a prospectus
283and other information to assist prospective owners, purchasers,
284lessees, and developers of residential condominiums in assessing
285the rights, privileges, and duties pertaining thereto.
286     (f)  The division has authority to adopt rules pursuant to
287ss. 120.536(1) and 120.54 to implement and enforce the
288provisions of this chapter.
289     (g)  The division shall establish procedures for providing
290notice to an association and the developer during the period
291where the developer controls the association when the division
292is considering the issuance of a declaratory statement with
293respect to the declaration of condominium or any related
294document governing in such condominium community.
295     (h)  The division shall furnish each association which pays
296the fees required by paragraph (2)(a) a copy of this act,
297subsequent changes to this act on an annual basis, an amended
298version of this act as it becomes available from the Secretary
299of State's office on a biennial basis, and the rules adopted
300thereto on an annual basis.
301     (i)  The division shall annually provide each association
302with a summary of declaratory statements and formal legal
303opinions relating to the operations of condominiums which were
304rendered by the division during the previous year.
305     (j)  The division shall provide training and educational
306programs for condominium association board members and unit
307owners. The training may, in the division's discretion, include
308web-based electronic media, and live training and seminars in
309various locations throughout the state. The division shall have
310the authority to review and approve education and training
311programs for board members and unit owners offered by providers
312and shall maintain a current list of approved programs and
313providers and shall make such list available to board members
314and unit owners in a reasonable and cost-effective manner.
315     (k)  The division shall maintain a toll-free telephone
316number accessible to condominium unit owners.
317     (l)  The division shall develop a program to certify both
318volunteer and paid mediators to provide mediation of condominium
319disputes. The division shall provide, upon request, a list of
320such mediators to any association, unit owner, or other
321participant in arbitration proceedings under s. 718.1255
322requesting a copy of the list. The division shall include on the
323list of volunteer mediators only the names of persons who have
324received at least 20 hours of training in mediation techniques
325or who have mediated at least 20 disputes. In order to become
326initially certified by the division, paid mediators must be
327certified by the Supreme Court to mediate court cases in county
328or circuit courts. However, the division may adopt, by rule,
329additional factors for the certification of paid mediators,
330which factors must be related to experience, education, or
331background. Any person initially certified as a paid mediator by
332the division must, in order to continue to be certified, comply
333with the factors or requirements imposed by rules adopted by the
335     (m)  When a complaint is made, the division shall conduct
336its inquiry with due regard to the interests of the affected
337parties. Within 30 days after receipt of a complaint, the
338division shall acknowledge the complaint in writing and notify
339the complainant whether the complaint is within the jurisdiction
340of the division and whether additional information is needed by
341the division from the complainant. The division shall conduct
342its investigation and shall, within 90 days after receipt of the
343original complaint or of timely requested additional
344information, take action upon the complaint. However, the
345failure to complete the investigation within 90 days does not
346prevent the division from continuing the investigation,
347accepting or considering evidence obtained or received after 90
348days, or taking administrative action if reasonable cause exists
349to believe that a violation of this chapter or a rule of the
350division has occurred. If an investigation is not completed
351within the time limits established in this paragraph, the
352division shall, on a monthly basis, notify the complainant in
353writing of the status of the investigation. When reporting its
354action to the complainant, the division shall inform the
355complainant of any right to a hearing pursuant to ss. 120.569
356and 120.57.
357     (n)  Condominium association directors, officers, and
358employees; condominium developers; condominium bulk assignees
359and bulk buyers; community association managers; and community
360association management firms have an ongoing duty to reasonably
361cooperate with the division in any investigation pursuant to
362this section. The division shall refer to local law enforcement
363authorities any person whom the division believes has altered,
364destroyed, concealed, or removed any record, document, or thing
365required to be kept or maintained by this chapter with the
366purpose to impair its verity or availability in the department's
368     (o)  The division may:
369     1.  Contract with agencies in this state or other
370jurisdictions to perform investigative functions; or
371     2.  Accept grants-in-aid from any source.
372     (p)  The division shall cooperate with similar agencies in
373other jurisdictions to establish uniform filing procedures and
374forms, public offering statements, advertising standards, and
375rules and common administrative practices.
376     (q)  The division shall consider notice to a developer,
377bulk assignee, and bulk buyer to be complete when it is
378delivered to the developer's address of the developer, bulk
379assignee, or bulk buyer currently on file with the division.
380     (r)  In addition to its enforcement authority, the division
381may issue a notice to show cause, which shall provide for a
382hearing, upon written request, in accordance with chapter 120.
383     (s)  The division shall submit to the Governor, the
384President of the Senate, the Speaker of the House of
385Representatives, and the chairs of the legislative
386appropriations committees an annual report that includes, but
387need not be limited to, the number of training programs provided
388for condominium association board members and unit owners, the
389number of complaints received by type, the number and percent of
390complaints acknowledged in writing within 30 days and the number
391and percent of investigations acted upon within 90 days in
392accordance with paragraph (m), and the number of investigations
393exceeding the 90-day requirement. The annual report shall also
394include an evaluation of the division's core business processes
395and make recommendations for improvements, including statutory
396changes. The report shall be submitted by September 30 following
397the end of the fiscal year.
398     Section 3.  Part VII of chapter 718, Florida Statutes,
399consisting of sections 718.701, 718.702, 718.703, 718.704,
400718.705, 718.706, 718.707, and 718.708, is created to read:
403     718.701  Short title.-This part may be cited as the
404"Distressed Condominium Relief Act."
405     718.702  Legislative intent.-
406     (1)  The Legislature acknowledges the massive downturn in
407the condominium market which has transpired throughout the state
408and the impact of such downturn on developers, lenders, unit
409owners, and condominium associations. Numerous condominium
410projects have either failed or are in the process of failing,
411whereby the condominium has a small percentage of third-party
412unit owners as compared to the unsold inventory of units. As a
413result of the inability to find purchasers for this inventory of
414units, which results in part from the devaluing of real estate
415in this state, developers are unable to satisfy the requirements
416of their lenders, leading to defaults on mortgages.
417Consequently, lenders are faced with the task of finding a
418solution to the problem in order to be paid for their
420     (2)  The Legislature recognizes that all of the factors
421listed in this section lead to condominiums becoming distressed,
422resulting in detriment to the unit owners and the condominium
423association on account of the resulting shortage of assessment
424moneys available to support the financial requirements for
425proper maintenance of the condominium. Such shortage and the
426resulting lack of proper maintenance further erode property
427values. The Legislature finds that individuals and entities
428within Florida and in other states have expressed interest in
429purchasing unsold inventory in one or more condominium projects,
430but are reticent to do so because of the potential of
431accompanying liabilities inherited from the original developer,
432which are potentially by definition imputed to the successor
433purchaser, including a foreclosing mortgagee. This results in
434the potential purchaser having unknown and unquantifiable risks,
435and potential successor purchasers are unwilling to accept such
436risks. The result is that condominium projects stagnate, leaving
437all parties involved at an impasse without the ability to find a
439     (3)  The Legislature finds and declares that it is the
440public policy of this state to protect the interests of
441developers, lenders, unit owners, and condominium associations
442with regard to distressed condominiums, and that there is a need
443for relief from certain provisions of the Florida Condominium
444Act geared toward enabling economic opportunities within these
445condominiums for successor purchasers, including foreclosing
446mortgagees, while at the same time clarifying the ambiguity in
447the law. Such relief would benefit existing unit owners and
448condominium associations. The Legislature further finds and
449declares that this situation cannot be open-ended without
450potentially prejudicing the rights of unit owners and
451condominium associations, and thereby declares that the
452provisions of this part shall be used by purchasers of
453condominium inventory for a specific and defined period.
454     718.703  Definitions.-As used in this part, the term:
455     (1)  "Bulk assignee" means a person who:
456     (a)  Acquires more than seven condominium units in a single
457condominium as set forth in s. 718.707; and
458     (b)  Receives an assignment of all or substantially all of
459the rights of the developer as are set forth in the declaration
460of condominium or in this chapter by a written instrument
461recorded as an exhibit to the deed or as a separate instrument
462in the public records of the county in which the condominium is
464     (2)  "Bulk buyer" means a person who acquires more than
465seven condominium units in a single condominium as set forth in
466s. 718.707 but who does not receive an assignment of any
467developer rights other than, at the bulk buyer's option, the
468right to conduct sales, leasing, and marketing activities within
469the condominium; the right to be exempt from the payment of
470working capital contributions to the condominium association
471arising out of or in connection with the bulk buyer's
472acquisition of a bulk number of units; and the right to be
473exempt from any rights of first refusal which may be held by the
474condominium association and would otherwise be applicable to
475subsequent transfers of title from the bulk buyer to any third-
476party purchaser concerning one or more units.
477     718.704  Assignment of developer rights to and assumption
478of developer rights by bulk assignee; bulk buyer.-
479     (1)  A bulk assignee shall be deemed to have assumed and is
480liable for all duties and responsibilities of a developer under
481the declaration and this chapter, except:
482     (a)  Warranties of a developer under s. 718.203(1) or s.
483718.618, except for design, construction, development, or repair
484work performed by or on behalf of such bulk assignee.
485     (b)  The obligation to:
486     1.  Fund converter reserves under s. 718.618 for a unit
487that was not acquired by the bulk assignee; or
488     2.  Provide converter warranties on any portion of the
489condominium property except as may be expressly provided by the
490bulk assignee in the contract for purchase and sale executed
491with a purchaser and pertaining to any design, construction,
492development, or repair work performed by or on behalf of the
493bulk assignee.
494     (c)  The requirement to provide the association with a
495cumulative audit of the association's finances from the date of
496formation of the condominium association as required by s.
497718.301. However, the bulk assignee shall provide an audit for
498the period for which the bulk assignee elects a majority of the
499members of the board of administration.
500     (d)  Any liability arising out of or in connection with
501actions taken by the board of administration or the developer-
502appointed directors before the bulk assignee elects a majority
503of the members of the board of administration.
504     (e)  Any liability for or arising out of the developer's
505failure to fund previous assessments or to resolve budgetary
506deficits in relation to a developer's right to guarantee
507assessments, except as otherwise provided in subsection (2).
509Further, the bulk assignee is responsible for delivering
510documents and materials in accordance with s. 718.705(3). A bulk
511assignee may expressly assume some or all of the obligations of
512the developer described in paragraphs (a)-(e).
513     (2)  A bulk assignee receiving the assignment of the rights
514of the developer to guarantee the level of assessments and fund
515budgetary deficits pursuant to s. 718.116 shall be deemed to
516have assumed and is liable for all obligations of the developer
517with respect to such guarantee, including any applicable funding
518of reserves to the extent required by law, for as long as the
519guarantee remains in effect. A bulk assignee not receiving an
520assignment of the right of the developer to guarantee the level
521of assessments and fund budgetary deficits pursuant to s.
522718.116 or a bulk buyer is not deemed to have assumed and is not
523liable for the obligations of the developer with respect to such
524guarantee, but is responsible for payment of assessments in the
525same manner as all other owners of condominium units.
526     (3)  A bulk buyer is liable for the duties and
527responsibilities of the developer under the declaration and this
528chapter only to the extent provided in this part, together with
529any other duties or responsibilities of the developer expressly
530assumed in writing by the bulk buyer.
531     (4)  An acquirer of condominium units is not considered a
532bulk assignee or a bulk buyer if the transfer to such acquirer
533was made prior to the effective date of this Distressed
534Condominium Relief Act or was made with the intent to hinder,
535delay, or defraud any purchaser, unit owner, or the association,
536or if the acquirer is a person who would constitute an insider
537under s. 726.102(7).
538     (5)  An assignment of developer rights to a bulk assignee
539may be made by the developer, a previous bulk assignee, or a
540court of competent jurisdiction acting on behalf of the
541developer or the previous bulk assignee. At any particular time,
542there may be no more than one bulk assignee within a
543condominium, but there may be more than one bulk buyer. If more
544than one acquirer of condominium units in the same condominium
545receives an assignment of developer rights from the same person,
546the bulk assignee is the acquirer whose instrument of assignment
547is recorded first in applicable public records.
548     718.705  Board of administration; transfer of control.-
549     (1)  For purposes of determining the timing for transfer of
550control of the board of administration of the association to
551unit owners other than the developer under s. 718.301(1)(a) and
552(b), if a bulk assignee is entitled to elect a majority of the
553members of the board, any condominium unit acquired by the bulk
554assignee shall not be deemed to be conveyed to a purchaser, or
555to be owned by an owner other than the developer, until such
556condominium unit is conveyed to an owner who is not a bulk
558     (2)  Unless control of the board of administration of the
559association has already been relinquished pursuant to s.
560718.301(1), the bulk assignee is obligated to relinquish control
561of the association in accordance with s. 718.301(1) or (2) and
562this part as if the bulk assignee were the developer.
563     (3)  When a bulk assignee relinquishes control of the board
564of administration, the bulk assignee shall deliver all of those
565items required by s. 718.301(4). However, the bulk assignee is
566not required to deliver items and documents not in the
567possession of the bulk assignee during the period during which
568the bulk assignee was entitled to elect not less than a majority
569of the members of the board of administration. In conjunction
570with the acquisition of condominium units, a bulk assignee shall
571undertake a good faith effort to obtain the documents and
572materials required to be provided to the association pursuant to
573s. 718.301(4). To the extent the bulk assignee is not able to
574obtain all of such documents and materials, the bulk assignee
575shall certify in writing to the association the names or
576descriptions of the documents and materials that were not
577obtainable by the bulk assignee. Delivery of the certificate
578relieves the bulk assignee of responsibility for the delivery of
579the documents and materials referenced in the certificate as
580otherwise required under ss. 718.112 and 718.301 and this part.
581The responsibility of the bulk assignee for the audit required
582by s. 718.301(4) shall commence as of the date on which the bulk
583assignee elected a majority of the members of the board of
585     (4)  If a conflict arises between the provisions or
586application of this section and s. 718.301, this section shall
588     (5)  Failure of a bulk assignee or bulk buyer to
589substantially comply with all the requirements contained in this
590part shall result in the loss of all protections or exemptions
591provided under this part.
592     718.706  Specific provisions pertaining to offering of
593units by a bulk assignee or bulk buyer.-
594     (1)  Before offering any units for sale or for lease for a
595term exceeding 5 years, a bulk assignee or a bulk buyer shall
596file the following documents with the division and provide such
597documents to a prospective purchaser or lessee:
598     (a)  An updated prospectus or offering circular, or a
599supplement to the prospectus or offering circular, filed by the
600creating developer prepared in accordance with s. 718.504, which
601shall include the form of contract for sale and for lease in
602compliance with s. 718.503(1)(a);
603     (b)  An updated Frequently Asked Questions and Answers
605     (c)  The executed escrow agreement if required under s.
606718.202; and
607     (d)  The financial information required by s. 718.111(13).
608However, if a financial information report does not exist for
609the fiscal year before acquisition of title by the bulk assignee
610or bulk buyer, or accounting records cannot be obtained in good
611faith by the bulk assignee or the bulk buyer which would permit
612preparation of the required financial information report, the
613bulk assignee or bulk buyer is excused from the requirement of
614this paragraph. However, the bulk assignee or bulk buyer must
615include in the purchase contract the following statement in
616conspicuous type:
624     (2)  Before offering any units for sale or for lease for a
625term exceeding 5 years, a bulk assignee shall file with the
626division and provide to a prospective purchaser a disclosure
627statement that must include, but is not limited to:
628     (a)  A description of any rights of the developer which
629have been assigned to the bulk assignee;
630     (b)  The following statement in conspicuous type:
637     (c)  If the condominium is a conversion subject to part VI,
638the following statement in conspicuous type:
648     (3)  While in control of the board of administration of the
649association, a bulk assignee may not authorize, on behalf of the
651     (a)  The waiver of reserves or the reduction of funding of
652the reserves in accordance with s. 718.112(2)(f)2., unless
653approved by a majority of the voting interests not controlled by
654the developer, bulk assignee, and bulk buyer; or
655     (b)  The use of reserve expenditures for other purposes in
656accordance with s. 718.112(2)(f)3., unless approved by a
657majority of the voting interests not controlled by the
658developer, bulk assignee, and bulk buyer.
659     (4)  A bulk assignee or bulk buyer shall comply with all
660the requirements of s. 718.302 regarding any contracts entered
661into by the association during the period the bulk assignee or
662bulk buyer maintains control of the board of administration.
663Unit owners shall be afforded all the protections contained in
664s. 718.302 regarding agreements entered into by the association
665before unit owners other than the developer, bulk assignee, or
666bulk buyer elected a majority of the board of administration.
667     (5)  A bulk buyer shall comply with the requirements
668contained in the declaration regarding any transfer of a unit,
669including sales, leases, and subleases. A bulk buyer is not
670entitled to any exemptions afforded a developer or successor
671developer under this chapter regarding any transfer of a unit,
672including sales, leases, or subleases.
673     718.707  Time limitation for classification as bulk
674assignee or bulk buyer.-A person acquiring condominium units may
675not be classified as a bulk assignee or bulk buyer unless the
676condominium units were acquired before July 1, 2012. The date of
677such acquisition shall be determined by the date of recording of
678a deed or other instrument of conveyance for such units in the
679public records of the county in which the condominium is located
680or by the date of issuance of a certificate of title in a
681foreclosure proceeding with respect to such condominium units.
682     718.708  Liability of developers and others.-An assignment
683of developer rights to a bulk assignee or bulk buyer does not
684release the creating developer from any liabilities under the
685declaration or this chapter. This part does not limit the
686liability of the creating developer for claims brought by unit
687owners, bulk assignees, or bulk buyers for violations of this
688chapter by the creating developer, unless specifically excluded
689in this part. Nothing contained within this part waives,
690releases, compromises, or limits the liability, if any, of
691contractors, subcontractors, materialmen, manufacturers,
692architects, engineers, or any participant in the design or
693construction of a condominium for any claim brought by an
694association, unit owners, bulk assignees, or bulk buyers arising
695from the design of the condominium, construction defects,
696misrepresentations associated with condominium property, or
697violations of this chapter, unless specifically excluded in this
699     Section 4.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.
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