July 16, 2019
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Florida Senate - 2008 SB 2086

By Senator Jones

13-03340B-08 20082086__

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A bill to be entitled

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An act relating to condominium associations; amending

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s. 718.111, F.S.; requiring that hazard insurance be

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based upon the replacement cost of the property to be

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insured as determined by an independent insurance

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appraisal or update of a prior appraisal; requiring

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that the full insurable value be determined at

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specified intervals; providing a means by which an

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association may provide adequate hazard insurance;

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authorizing an association to consider certain

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information when determining coverage amounts;

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providing for coverage by developer-controlled

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associations; providing that policies may include

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deductibles as determined by the association's board of

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directors; providing requirements and guidelines for

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the establishment of such deductibles; requiring that

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the amounts of deductibles be set at a meeting of the

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board; providing requirements for such meeting;

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requiring that an association controlled by unit owners

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operating as a residential condominium use its best

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efforts to obtain and maintain adequate insurance to

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protect the association and property under its

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supervision or control; providing that a declaration of

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condominium may provide that condominium property

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consisting of freestanding buildings comprised of no

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more than one building in or on such unit need not be

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insured by the association if the declaration requires

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the unit owner to obtain adequate insurance for the

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condominium property; authorizing an association to

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obtain and maintain liability insurance for directors

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and officers, insurance for the benefit of association

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employees, and flood insurance for common elements,

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association property, and units; requiring that every

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hazard insurance policy issued or renewed on or after a

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specified date for the purpose of protecting the

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condominium provide certain coverage; requiring that

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such policies contain certain provisions; providing

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that such policies issued to individual unit owners do

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not provide rights of subrogation against the

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condominium association; providing for the insurance of

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improvements or additions benefiting fewer than all

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unit owners; requiring that an association require each

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owner to provide evidence of a current policy of hazard

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and liability insurance upon request; limiting the

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frequency with which an association may make such a

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request; authorizing an association to purchase

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coverage on behalf of an owner under certain

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circumstances; providing for the collection of the

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costs of such a policy; providing responsibilities of

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the unit owner and association with regard to

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reconstruction work and associated costs after a

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casualty loss; authorizing a multicondominium

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association to operate such condominiums as a single

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condominium for certain purposes by majority vote of

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the members of all applicable condominiums; providing

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that such election constitutes an amendment to the

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declaration of all applicable condominiums; requiring

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that an association maintain insurance or fidelity

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bonding for all persons who control or disburse

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association funds; requiring that such insurance policy

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or fidelity bond cover the maximum funds in the custody

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of the association or its management agent at any one

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time; defining the term "persons who control or

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disburse funds of the association"; authorizing an

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association to amend the declaration of condominium

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without regard to any requirement for approval by

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mortgagees of amendments affecting insurance

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requirements for the purpose of conforming the

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declaration of condominium to certain coverage

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requirements; providing that any portion of the

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condominium property required to be insured by the

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association against casualty loss which is damaged be

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reconstructed, repaired, or replaced as necessary by

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the association as a common expense; providing that all

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hazard insurance deductibles, uninsured losses, and

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other damages in excess of hazard insurance coverage

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under the hazard insurance policies maintained by the

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association are a common expense of the condominium;

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providing exceptions; allocating responsibility for

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certain costs of repair or reconstruction; authorizing

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an association to opt out of certain requirements

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related to such allocation of responsibility by

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majority vote; providing a procedure by which a

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multicondominium association that has not consolidated

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its financial operations may opt out of such allocation

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of responsibility; requiring that a decision to opt out

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be recorded; providing that such decision takes effect

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on the date on which it is recorded; authorizing the

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reversal of such decision; providing a procedure for

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reversal; providing that an association is not

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obligated to pay for any reconstruction or repair

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expenses for improvements made by an owner or the

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development if an improvement benefits only the unit

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for which it was installed; amending s. 718.115, F.S.;

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requiring that certain expenses be designated as common

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expenses; amending s. 718.116, F.S.; authorizing the

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designee of a unit owner or mortgagee to request a

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certificate of assessment; requiring that the fee for

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preparation of such certificate be stated on the

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certificate; providing for the establishment of such

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fees; providing for payment of the fee; requiring that

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the fee be refunded if a planned sale or mortgage does

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not occur; providing that any such refund is the

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obligation of the unit owner and is collectable in the

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same manner as an assessment; amending s. 718.117,

106

F.S.; prohibiting the distribution of proceeds from the

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sale of a condominium unit to a lienholder from

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exceeding a unit owner's share of the proceeds;

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creating s. 720.30851, F.S.; requiring that the

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association provide a certificate signed by an officer

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or agent of the association stating all assessments and

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other moneys owed to the association by the parcel

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owner or mortgagee with respect to the parcel within a

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specified period after the association's receipt of a

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request for an estoppel certificate by an owner or

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mortgagee; providing that any person other than a

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parcel owner who relies upon a certificate receives the

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benefits and protection thereof; providing that a

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summary proceeding may be brought to compel the

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association to comply with the requirement to provide a

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certificate; providing that the prevailing party is

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entitled to recover reasonable attorney's fees;

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requiring that the fee for preparation of such

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certificate be stated on the certificate; providing for

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the establishment of such fees; providing for payment

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of the fee; requiring that the fee be refunded if a

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planned sale or mortgage does not occur; providing that

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any such refund is the obligation of the unit owner and

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is collectable in the same manner as an assessment;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsection (11) of section 718.111, Florida

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Statutes, is amended to read:

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     718.111  The association.--

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     (11)  INSURANCE.--In order to protect the safety, health,

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and welfare of the people of the State of Florida and to ensure

139

consistency in the provision of insurance coverage to

140

condominiums and their unit owners, this subsection applies

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paragraphs (a), (b), and (c) are deemed to apply to every

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residential condominium in the state, regardless of the date of

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its declaration of condominium. It is the intent of the

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Legislature to encourage lower or stable insurance premiums for

145

associations described in this subsection section.

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     (a) Adequate hazard insurance, regardless of any

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requirement in the declaration of condominium for coverage by the

148

association for full insurable value, replacement cost, or

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similar coverage, shall be based upon the replacement cost of the

150

property to be insured as determined by an independent insurance

151

appraisal or update of a prior appraisal. The full insurable

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value shall be determined at least once every 36 months.

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     1. An association or group of associations may provide

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adequate hazard insurance through a self-insurance fund that

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complies with the requirements of ss. 624.460-624.488.

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     2. The association may also provide adequate hazard

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insurance coverage individually or for a group of no fewer than

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three communities created and operating under this chapter,

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chapter 719, chapter 720, or chapter 721 by obtaining and

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maintaining for such communities insurance coverage sufficient to

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cover an amount equal to the probable maximum loss for the

162

communities for a 250-year windstorm event. Such probable maximum

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loss must be determined through the use of a competent model that

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has been accepted by the Florida Commission on Hurricane Loss

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Projection Methodology. Any policy providing such coverage issued

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after July 1, 2008, must be approved by the Office of Insurance

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Regulation before such coverage is deemed adequate.

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     3. When determining the adequate amount of hazard insurance

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coverage, the association may consider deductibles as determined

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by this subsection.

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     (b) If an association is a developer-controlled

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association, the association shall exercise its best efforts to

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obtain and maintain insurance as described in paragraph (a).

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Failure to obtain and maintain adequate hazard insurance during

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any period of developer control constitutes a breach of fiduciary

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responsibility by the developer-appointed members of the board of

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directors of the association, unless the members can show that

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despite such failure, they have made their best efforts to

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maintain the required coverage.

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     (c) Policies may include deductibles as determined by the

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board.

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     1. The deductibles shall be consistent with industry

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standards and prevailing practice for communities of similar size

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and age, and having similar construction and facilities in the

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locale where the condominium property is situated.

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     2. The deductibles may be based upon available funds,

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including reserve accounts, or predetermined assessment authority

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at the time the insurance is obtained.

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     3. The board shall establish the amount of deductibles

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based upon the level of available funds and predetermined

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assessment authority at a meeting of the board. Such meeting

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shall be open to all unit owners in the manner set forth in s.

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718.112(2)(e). The notice of such meeting must state the proposed

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deductible and the available funds and the assessment authority

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relied upon by the board and estimate any potential assessment

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amount against each unit, if any. The meeting described in this

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paragraph may be held in conjunction with a meeting to consider

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the proposed budget or an amendment thereto.

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     (d) An association controlled by unit owners operating as a

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residential condominium shall use its best efforts to obtain and

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maintain adequate insurance to protect the association, the

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association property, the common elements, and the condominium

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property that is required to be insured by the association

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pursuant to this subsection.

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     (e) The declaration of condominium as originally recorded,

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or as amended pursuant to procedures provided therein, may

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provide that condominium property consisting of freestanding

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buildings comprised of no more than one building in or on such

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unit need not be insured by the association if the declaration

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requires the unit owner to obtain adequate insurance for the

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condominium property. An association may also obtain and maintain

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liability insurance for directors and officers, insurance for the

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benefit of association employees, and flood insurance for common

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elements, association property, and units.

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     (f) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, for the purpose of protecting the

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condominium shall provide primary coverage for:

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     1. All portions of the condominium property as originally

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installed or replacement of like kind and quality, in accordance

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with the original plans and specifications.

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     2. All alterations or additions made to the condominium

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property or association property pursuant to s. 718.113(2).

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     3. The coverage shall exclude all personal property within

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the unit or limited common elements, and floor, wall, and ceiling

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coverings, electrical fixtures, appliances, water heaters, water

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filters, built-in cabinets and countertops, and window

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treatments, including curtains, drapes, blinds, hardware, and

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similar window treatment components, or replacements of any of

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the foregoing.

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     (g) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, to an individual unit owner must contain a

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provision stating that the coverage afforded by such policy is

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excess coverage over the amount recoverable under any other

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policy covering the same property. Such policies must include

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special assessment coverage of no less than $2,000 per

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occurrence. An insurance policy issued to an individual unit

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owner providing such coverage does not provide rights of

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subrogation against the condominium association operating the

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condominium in which such individual's unit is located.

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     1. All improvements or additions to the condominium

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property that benefit fewer than all unit owners shall be insured

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by the unit owner or owners having the use thereof, or may be

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insured by the association at the cost and expense of the unit

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owners having the use thereof.

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     2. The association shall require each owner to provide

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evidence of a currently effective policy of hazard and liability

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insurance upon request, but not more than once per year. Upon the

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failure of an owner to provide a certificate of insurance issued

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by an insurer approved to write such insurance in this state

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within 30 days after the date on which a written request is

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delivered, the association may purchase a policy of insurance on

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behalf of an owner. The cost of such a policy, together with

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reconstruction costs undertaken by the association but which are

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the responsibility of the unit owner, may be collected in the

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manner provided for the collection of assessments in s. 718.116.

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     3. All reconstruction work after a casualty loss shall be

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undertaken by the association except as otherwise authorized in

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this section. A unit owner may undertake reconstruction work on

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portions of the unit with the prior written consent of the board

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of administration. However, such work may be conditioned upon the

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approval of the repair methods, the qualifications of the

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proposed contractor, or the contract that is used for that

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purpose. A unit owner shall obtain all required governmental

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permits and approvals prior to commencing reconstruction.

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     4. Unit owners are responsible for the cost of

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reconstruction of any portions of the condominium property for

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which the unit owner is required to carry casualty insurance, and

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any such reconstruction work undertaken by the association shall

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be chargeable to the unit owner and enforceable as an assessment

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pursuant to s. 718.116. The association must be an additional

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named insured and loss payee on all casualty insurance policies

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issued to unit owners in the condominium operated by the

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association.

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     5. A multicondominium association may elect, by a majority

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vote of the collective members of the condominiums operated by

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the association, to operate such condominiums as a single

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condominium for purposes of insurance matters, including, but not

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limited to, the purchase of the hazard insurance required by this

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section and the apportionment of deductibles and damages in

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excess of coverage. The election to aggregate the treatment of

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insurance premiums, deductibles, and excess damages constitutes

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an amendment to the declaration of all condominiums operated by

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the association, and the costs of insurance shall be stated in

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the association budget. The amendments shall be recorded as

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required by s. 718.110.

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     (h) The association shall maintain insurance or fidelity

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bonding of all persons who control or disburse funds of the

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association. The insurance policy or fidelity bond must cover the

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maximum funds that will be in the custody of the association or

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its management agent at any one time. As used in this paragraph,

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the term "persons who control or disburse funds of the

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association" includes, but is not limited to, those individuals

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authorized to sign checks on behalf of the association, and the

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president, secretary, and treasurer of the association. The

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association shall bear the cost of any such bonding.

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     (i) The association may amend the declaration of

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condominium without regard to any requirement for approval by

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mortgagees of amendments affecting insurance requirements for the

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purpose of conforming the declaration of condominium to the

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coverage requirements of this subsection.

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     (j) Any portion of the condominium property required to be

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insured by the association against casualty loss pursuant to

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paragraph (f) which is damaged by casualty shall be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense. All hazard insurance

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deductibles, uninsured losses, and other damages in excess of

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hazard insurance coverage under the hazard insurance policies

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maintained by the association are a common expense of the

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condominium, except that:

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     1. A unit owner is responsible for the costs of repair or

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replacement of any portion of the condominium property not paid

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by insurance proceeds, if such damage is caused by intentional

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conduct, negligence, or failure to comply with the terms of the

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declaration or the rules of the association by a unit owner, the

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members of his or her family, unit occupants, tenants, guests, or

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invitees, without compromise of the subrogation rights of any

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insurer as set forth in paragraph (g).

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     2. The provisions of subparagraph 1. regarding the

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financial responsibility of a unit owner for the costs of

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repairing or replacing other portions of the condominium property

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also applies to the costs of repair or replacement of personal

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property of other unit owners or the association, as well as

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other property, whether real or personal, which the unit owners

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are required to insure under paragraph (g).

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     3. To the extent the cost of repair or reconstruction for

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which the unit owner is responsible under this paragraph is

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reimbursed to the association by insurance proceeds, and, to the

328

extent the association has collected the cost of such repair or

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reconstruction from the unit owner, the association shall

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reimburse the unit owner without the waiver of any rights of

331

subrogation.

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     4. The association is not obligated to pay for repair or

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reconstruction or repairs of casualty losses as a common expense

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if the casualty losses were known or should have been known to a

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unit owner and were not reported to the association until after

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the insurance claim of the association for that casualty was

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settled or resolved with finality, or denied on the basis that it

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was untimely filed.

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     (k) An association may, upon the approval of a majority of

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the total voting interests in the association, opt out of the

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provisions of paragraph (j) for the allocation of repair or

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reconstruction expenses and allocate repair or reconstruction

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expenses in the manner provided in the declaration as originally

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recorded or as amended. Such vote may be approved by the voting

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interests of the association without regard to any mortgagee

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consent requirements.

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     (l) In a multicondominium association that has not

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consolidated its financial operations under s. 718.111(6), any

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condominium operated by the association may opt out of the

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provisions of paragraph (j) with the approval of a majority of

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the total voting interests in that condominium. Such vote may be

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approved by the voting interests without regard to any mortgagee

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consent requirements.

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     (m) Any association or condominium voting to opt out of the

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guidelines for repair or reconstruction expenses as described in

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paragraph (j) must record a notice setting forth the date of the

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opt-out vote and the page of the official records book on which

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the declaration is recorded. The decision to opt out is effective

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upon the date of recording of the notice in the public records by

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the association. An association that has voted to opt out of

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paragraph (j) may reverse that decision by the same vote required

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in paragraphs (k) and (l), and notice thereof shall be recorded

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in the official records.

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     (n) The association is not obligated to pay for any

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reconstruction or repair expenses due to casualty loss to any

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improvements installed by a current or former owner of the unit

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or by the developer if the improvement benefits only the unit for

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which it was installed and is not part of the standard

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improvements installed by the developer on all units as part of

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original construction, whether or not such improvement is located

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within the unit. This paragraph does not relieve any party of its

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obligations regarding recovery due under any insurance

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implemented specifically for any such improvements.

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Therefore, the Legislature requires a report to be prepared by

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the Office of Insurance Regulation of the Department of Financial

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Services for publication 18 months from the effective date of

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this act, evaluating premium increases or decreases for

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associations, unit owner premium increases or decreases,

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recommended changes to better define common areas, or any other

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information the Office of Insurance Regulation deems appropriate.

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     (a) A unit-owner controlled association operating a

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residential condominium shall use its best efforts to obtain and

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maintain adequate insurance to protect the association, the

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association property, the common elements, and the condominium

385

property required to be insured by the association pursuant to

386

paragraph (b). If the association is developer controlled, the

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association shall exercise due diligence to obtain and maintain

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such insurance. Failure to obtain and maintain adequate insurance

389

during any period of developer control shall constitute a breach

390

of fiduciary responsibility by the developer-appointed members of

391

the board of directors of the association, unless said members

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can show that despite such failure, they have exercised due

393

diligence. The declaration of condominium as originally recorded,

394

or amended pursuant to procedures provided therein, may require

395

that condominium property consisting of freestanding buildings

396

where there is no more than one building in or on such unit need

397

not be insured by the association if the declaration requires the

398

unit owner to obtain adequate insurance for the condominium

399

property. An association may also obtain and maintain liability

400

insurance for directors and officers, insurance for the benefit

401

of association employees, and flood insurance for common

402

elements, association property, and units. Adequate insurance,

403

regardless of any requirement in the declaration of condominium

404

for coverage by the association for "full insurable value,"

405

"replacement cost," or the like, may include reasonable

406

deductibles as determined by the board based upon available funds

407

or predetermined assessment authority at the time that the

408

insurance is obtained.

409

     1. Windstorm insurance coverage for a group of no fewer

410

than three communities created and operating under this chapter,

411

chapter 719, chapter 720, or chapter 721 may be obtained and

412

maintained for the communities if the insurance coverage is

413

sufficient to cover an amount equal to the probable maximum loss

414

for the communities for a 250-year windstorm event. Such probable

415

maximum loss must be determined through the use of a competent

416

model that has been accepted by the Florida Commission on

417

Hurricane Loss Projection Methodology. Such insurance coverage is

418

deemed adequate windstorm insurance for the purposes of this

419

section.

420

     2. An association or group of associations may self-insure

421

against claims against the association, the association property,

422

and the condominium property required to be insured by an

423

association, upon compliance with the applicable provisions of

424

ss. 624.460-624.488, which shall be considered adequate insurance

425

for the purposes of this section. A copy of each policy of

426

insurance in effect shall be made available for inspection by

427

unit owners at reasonable times.

428

     (b) Every hazard insurance policy issued or renewed on or

429

after January 1, 2004, to protect the condominium shall provide

430

primary coverage for:

431

     1. All portions of the condominium property located outside

432

the units;

433

     2. The condominium property located inside the units as

434

such property was initially installed, or replacements thereof of

435

like kind and quality and in accordance with the original plans

436

and specifications or, if the original plans and specifications

437

are not available, as they existed at the time the unit was

438

initially conveyed; and

439

     3. All portions of the condominium property for which the

440

declaration of condominium requires coverage by the association.

441

442

Anything to the contrary notwithstanding, the terms "condominium

443

property," "building," "improvements," "insurable improvements,"

444

"common elements," "association property," or any other term

445

found in the declaration of condominium which defines the scope

446

of property or casualty insurance that a condominium association

447

must obtain shall exclude all floor, wall, and ceiling coverings,

448

electrical fixtures, appliances, air conditioner or heating

449

equipment, water heaters, water filters, built-in cabinets and

450

countertops, and window treatments, including curtains, drapes,

451

blinds, hardware, and similar window treatment components, or

452

replacements of any of the foregoing which are located within the

453

boundaries of a unit and serve only one unit and all air

454

conditioning compressors that service only an individual unit,

455

whether or not located within the unit boundaries. The foregoing

456

is intended to establish the property or casualty insuring

457

responsibilities of the association and those of the individual

458

unit owner and do not serve to broaden or extend the perils of

459

coverage afforded by any insurance contract provided to the

460

individual unit owner. Beginning January 1, 2004, the association

461

shall have the authority to amend the declaration of condominium,

462

without regard to any requirement for mortgagee approval of

463

amendments affecting insurance requirements, to conform the

464

declaration of condominium to the coverage requirements of this

465

section.

466

     (c) Every hazard insurance policy issued or renewed on or

467

after January 1, 2004, to an individual unit owner shall provide

468

that the coverage afforded by such policy is excess over the

469

amount recoverable under any other policy covering the same

470

property. Each insurance policy issued to an individual unit

471

owner providing such coverage shall be without rights of

472

subrogation against the condominium association that operates the

473

condominium in which such unit owner's unit is located. All real

474

or personal property located within the boundaries of the unit

475

owner's unit which is excluded from the coverage to be provided

476

by the association as set forth in paragraph (b) shall be insured

477

by the individual unit owner.

478

     (d) The association shall obtain and maintain adequate

479

insurance or fidelity bonding of all persons who control or

480

disburse funds of the association. The insurance policy or

481

fidelity bond must cover the maximum funds that will be in the

482

custody of the association or its management agent at any one

483

time. As used in this paragraph, the term "persons who control or

484

disburse funds of the association" includes, but is not limited

485

to, those individuals authorized to sign checks and the

486

president, secretary, and treasurer of the association. The

487

association shall bear the cost of bonding.

488

     Section 2.  Paragraph (a) of subsection (1) of section

489

718.115, Florida Statutes, is amended to read:

490

     718.115  Common expenses and common surplus.--

491

     (1)(a)  Common expenses include the expenses of the

492

operation, maintenance, repair, replacement, or protection of the

493

common elements and association property, costs of carrying out

494

the powers and duties of the association, and any other expense,

495

whether or not included in the foregoing, designated as common

496

expense by this chapter, the declaration, the documents creating

497

the association, or the bylaws. Common expenses also include

498

reasonable transportation services, insurance for directors and

499

officers, road maintenance and operation expenses, in-house

500

communications, and security services, which are reasonably

501

related to the general benefit of the unit owners even if such

502

expenses do not attach to the common elements or property of the

503

condominium. However, such common expenses must either have been

504

services or items provided on or after the date control of the

505

association is transferred from the developer to the unit owners

506

or must be services or items provided for in the condominium

507

documents or bylaws. Unless the manner of payment or allocation

508

of expenses is otherwise addressed in the declaration of

509

condominium, the expenses of any items or services required by

510

any federal, state, or local governmental entity to be installed,

511

maintained, or supplied to the condominium property by the

512

association, including, but not limited to, fire safety equipment

513

or water and sewer service where a master meter serves the

514

condominium, shall be common expenses whether or not such items

515

or services are specifically identified as common expenses in the

516

declaration of condominium, articles of incorporation, or bylaws

517

of the association.

518

     Section 3.  Subsection (8) of section 718.116, Florida

519

Statutes, is amended to read:

520

     718.116  Assessments; liability; lien and priority;

521

interest; collection.--

522

     (8)  Within 15 days after receiving a written request

523

therefor from a unit owner or his or her designee purchaser, or

524

a unit mortgagee or his or her designee, the association shall

525

provide a certificate signed by an officer or agent of the

526

association stating all assessments and other moneys owed to the

527

association by the unit owner with respect to the condominium

528

parcel.

529

     (a) Any person other than the owner who relies upon such

530

certificate shall be protected thereby.

531

     (b) A summary proceeding pursuant to s. 51.011 may be

532

brought to compel compliance with this subsection, and in any

533

such action the prevailing party is entitled to recover

534

reasonable attorney's fees.

535

     (c) Notwithstanding any limitation on transfer fees

536

contained in s. 718.112(2)(i), the association or its authorized

537

agent may charge a reasonable fee for the preparation of the

538

certificate. The amount of the fee must be included on the

539

certificate.

540

     (d) The authority to charge a fee under this section shall

541

be established by written resolution adopted by the board or

542

provided by written management, bookkeeping, or maintenance

543

contract. The fee is payable upon the preparation of the

544

certificate, and if the certificate is requested in conjunction

545

with the sale or mortgage of a unit and the closing does not

546

occur, the fee shall be refunded promptly upon written notice

547

from the person requesting the certificate stating that the sale

548

or mortgage did not occur. Any such refund is the obligation of

549

the unit owner and is collectable in the same manner as an

550

assessment as provided in this section.

551

     Section 4.  Paragraph (c) of subsection (17) of section

552

718.117, Florida Statutes, is amended to read:

553

     718.117  Termination of condominium.--

554

     (17)  DISTRIBUTION.--

555

     (c)  The proceeds from any sale of condominium property or

556

association property and any remaining condominium property or

557

association property, common surplus, and other assets shall be

558

distributed in the following priority:

559

     1.  To pay the reasonable termination trustee's fees and

560

costs and accounting fees and costs.

561

     2.  To lienholders of liens recorded prior to the recording

562

of the declaration.

563

     3.  To purchase-money lienholders on units to the extent

564

necessary to satisfy their liens; however, the distribution may

565

not exceed a unit owner's share of the proceeds.

566

     4.  To lienholders of liens of the association which have

567

been consented to under s. 718.121(1).

568

     5.  To creditors of the association, as their interests

569

appear.

570

     6.  To unit owners, the proceeds of any sale of condominium

571

property subject to satisfaction of liens on each unit in their

572

order of priority, in shares specified in the plan of

573

termination, unless objected to by a unit owner or lienor as

574

provided in paragraph (b).

575

     7.  To unit owners, the remaining condominium property,

576

subject to satisfaction of liens on each unit in their order of

577

priority, in shares specified in the plan of termination, unless

578

objected to by a unit owner or a lienor as provided in paragraph

579

(b).

580

     8.  To unit owners, the proceeds of any sale of association

581

property, the remaining association property, common surplus, and

582

other assets of the association, subject to satisfaction of liens

583

on each unit in their order of priority, in shares specified in

584

the plan of termination, unless objected to by a unit owner or a

585

lienor as provided in paragraph (b).

586

     Section 5.  Section 720.30851, Florida Statutes, is created

587

to read:

588

     720.30851 Estoppel certificates.--Within 15 days after the

589

date on which a request for an estoppel certificate is received

590

from a parcel owner or mortgagee, or his or her designee, the

591

association shall provide a certificate signed by an officer or

592

agent of the association stating all assessments and other moneys

593

owed to the association by the parcel owner or mortgagee with

594

respect to the parcel. An association may charge a fee for the

595

preparation of such certificate, and the amount of such fee must

596

be stated on the certificate.

597

     (1) Any person other than a parcel owner who relies upon a

598

certificate receives the benefits and protection thereof.

599

     (2) A summary proceeding pursuant to s. 51.011 may be

600

brought to compel compliance with this section, and the

601

prevailing party is entitled to recover reasonable attorney's

602

fees.

603

     (3) The authority to charge a fee for a certificate

604

required by this section shall be established by written

605

resolution adopted by the board or provided by written

606

management, bookkeeping, or maintenance contract. The fee is

607

payable upon the preparation of the certificate, and, if the

608

certificate is requested in conjunction with the sale or mortgage

609

of a unit and the closing does not occur, the fee shall be

610

refunded promptly upon written notice from the person requesting

611

the certificate stating that the sale or mortgage did not occur.

612

Any such refund is the obligation of the unit owner and is

613

collectible in the same manner as an assessment as provided in

614

this section.

615

     Section 6.  This act shall take effect July 1, 2008.

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

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