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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to the yacht and ship brokers; 2
amending s. 20.165, F.S.; renaming the Division of 3
Florida Condominiums, Timeshares, and Mobile Homes 4
within the Department of Business and Professional 5
Regulation as the Division of Florida Condominiums, 6
Timeshares, Yacht Brokers, and Mobile Homes; amending 7
s. 326.002, F.S.; revising and providing definitions; 8
amending s. 326.004, F.S.; exempting a visiting broker 9
from licensure for specified transactions; requiring, 10
rather than authorizing, the division to deny licenses 11
for applicants who fail to meet certain requirements; 12
revising requirements for licensure as a broker; 13
removing a provision requiring the division t o adopt 14
rules relating to temporary licenses; amending ss. 15
192.037, 213.053, 326.006, 455.116, 475.455, 509.512, 16
559.935, 718.103, 718.105, 718.1255, 718.501, 17
718.5011, 718.502, 718.503, 718.504, 718.508, 718.509, 18
718.608, 719.103, 719.1255, 719.501, 719.5 02, 719.504, 19
719.508, 719.608, 720.301, 721.05, 721.07, 721.08, 20
721.26, 721.28, 721.301, 723.003, 723.006, 723.009, 21
723.0611; conforming provisions to changes made by the 22
act; providing an effective date. 23
24
Be It Enacted by the Legislature of the State of Florida: 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
26
Section 1. Paragraph (e) of subsection (2) of section 27
20.165, Florida Statutes, is amended to read: 28
20.165 Department of Business and Professional 29
Regulation.—There is created a Department of Business and 30
Professional Regulation. 31
(2) The following divisions of the Department of Business 32
and Professional Regulation are established: 33
(e) Division of Florida Condominiums, Timeshares, Yacht 34
Brokers, and Mobile Homes. 35
Section 2. Subsections (4) and (5) of section 326.002, 36
Florida Statutes, are renumbered as subsections (6) and (3), 37
respectively, subsection (2) and present subsection (4) are 38
amended, and a new subsection (4) is added to that section, to 39
read: 40
326.002 Definitions. —As used in ss. 326.001 -326.006, the 41
term: 42
(2) "Division" means the Division of Florida Condominiums, 43
Timeshares, Yacht Brokers, and Mobile Homes of the Department of 44
Business and Professional Regulation. 45
(4) "Visiting Broker" means a person who conducts business 46
as a broker or salesperson in another state as his or her 47
primary profession and engages in the purchase or sale of a 48
yacht under this act if the transaction is executed in its 49
entirety with a broker or salesperson licensed in this state.50
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(6)(4) "Yacht" means any vessel which is propelled by sail 51
or machinery in the water which exceeds 32 feet in length , and 52
is: 53
(a) Manufactured or operated primarily for pleasure; or 54
(b) Leased, rented, or chartered to a person other than 55
the owner for such person's pleasure which weighs less than 300 56
gross tons. 57
Section 3. Subsections (6), (8), and (15) of section 58
326.004, Florida Statutes, are amended, and paragraph (f) is 59
added to subsection (3) of that section, to read: 60
326.004 Licensing.— 61
(3) A license is not required for: 62
(f) A visiting broker who engages in the purchase or sale 63
of a yacht under this act, if the transaction is executed in its 64
entirety with a broker or a salesperson licensed in this state. 65
(6) The division shall may deny a license to any applicant 66
who does not: 67
(a) Furnish proof satisfactory to the division that he or 68
she is of good moral character. 69
(b) Certify that he or she has never been convicted of a 70
felony. 71
(c) Post the bond required by the Yacht and Ship Brokers' 72
Act. 73
(d) Demonstrate that he or she is a resident of th is state 74
or that he or she conducts business in this state. 75
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(e) Furnish a full set of fingerprints taken within the 6 76
months immediately preceding the submission of the application. 77
(f) Have a current license and has operated as a broker or 78
salesperson without a license. 79
(8) A person may not be licensed as a broker unless he or 80
she: 81
(a) Has been a salesperson for at least 2 consecutive 82
years;, and 83
(b)1. Can demonstrate that he or she has been directly 84
involved in at least four transactions that re sulted in the sale 85
of a yacht; or 86
2. Can certify that he or she has obtained 20 continuing 87
education credits approved by the division may not be licensed 88
as a broker unless he or she has been licensed as a salesperson 89
for at least 2 consecutive years . 90
(15) The division shall provide by rule for the issuance 91
of a temporary 90-day license to an applicant while the Florida 92
Department of Law Enforcement conducts a national criminal 93
history analysis of the applicant by means of fingerprint 94
identification. 95
Section 4. Paragraph (e) of subsection (6) of section 96
192.037, Florida Statutes, is amended to read: 97
192.037 Fee timeshare real property; taxes and 98
assessments; escrow. — 99
(6) 100
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(e) On or before May 1 of each year, a statement of 101
receipts and disburseme nts of the escrow account must be filed 102
with the Division of Florida Condominiums, Timeshares, Yacht 103
Brokers, and Mobile Homes of the Department of Business and 104
Professional Regulation, which may enforce this paragraph 105
pursuant to s. 721.26. This statement must appropriately show 106
the amount of principal and interest in such account. 107
Section 5. Paragraph (i) of subsection (8) of section 108
213.053, Florida Statutes, is amended to read: 109
213.053 Confidentiality and information sharing. — 110
(8) Notwithstanding any other provision of this section, 111
the department may provide: 112
(i) Information relative to chapters 212 and 326 to the 113
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 114
Mobile Homes of the Department of Business and Professional 115
Regulation in the conduct of its official duties. 116
117
Disclosure of information under this subsection shall be 118
pursuant to a written agreement between the executive director 119
and the agency. Such agencies, governmental or nongovernmental, 120
shall be bound by the same requirements of confidentiality as 121
the Department of Revenue. Breach of confidentiality is a 122
misdemeanor of the first degree, punishable as provided by s. 123
775.082 or s. 775.083. 124
Section 6. Paragraph (d) of subsection (2) and subsection 125
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(3) of section 326.006, Florida Statutes, are amended to read: 126
326.006 Powers and duties of division. — 127
(2) The division has the power to enforce and ensure 128
compliance with the provisions of this chapter and rules adopted 129
under this chapter relating to the sale and own ership of yachts 130
and ships. In performing its duties, the division has the 131
following powers and duties: 132
(d) Notwithstanding any remedies available to a yacht or 133
ship purchaser, if the division has reasonable cause to believe 134
that a violation of any provi sion of this chapter or rule 135
adopted under this chapter has occurred, the division may 136
institute enforcement proceedings in its own name against any 137
broker or salesperson or any of his or her assignees or agents, 138
or against any unlicensed person or any of his or her assignees 139
or agents, as follows: 140
1. The division may permit a person whose conduct or 141
actions are under investigation to waive formal proceedings and 142
enter into a consent proceeding whereby orders, rules, or 143
letters of censure or warning, whet her formal or informal, may 144
be entered against the person. 145
2. The division may issue an order requiring the broker or 146
salesperson or any of his or her assignees or agents, or 147
requiring any unlicensed person or any of his or her assignees 148
or agents, to cease and desist from the unlawful practice and 149
take such affirmative action as in the judgment of the division 150
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will carry out the purposes of this chapter. 151
3. The division may bring an action in circuit court on 152
behalf of a class of yacht or ship purchasers for declaratory 153
relief, injunctive relief, or restitution. 154
4. The division may impose a civil penalty against a 155
broker or salesperson or any of his or her assignees or agents, 156
or against an unlicensed person or any of his or her assignees 157
or agents, for any violation of this chapter or a rule adopted 158
under this chapter. A penalty may be imposed for each day of 159
continuing violation, but in no event may the penalty for any 160
offense exceed $10,000. All amounts collected must be deposited 161
with the Chief Financial Officer to the credit of the Division 162
of Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 163
Homes Trust Fund. If a broker, salesperson, or unlicensed person 164
working for a broker, fails to pay the civil penalty, the 165
division shall issue an order suspending the broker's license 166
until such time as the civil penalty is paid or may pursue 167
enforcement of the penalty in a court of competent jurisdiction. 168
The order imposing the civil penalty or the order of suspension 169
may not become effectiv e until 20 days after the date of such 170
order. Any action commenced by the division must be brought in 171
the county in which the division has its executive offices or in 172
the county where the violation occurred. 173
(3) All fees must be deposited in the Division of Florida 174
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 175
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Fund as provided by law. 176
Section 7. Subsection (5) of section 455.116, Florida 177
Statutes, is amended to read: 178
455.116 Regulation trust funds. —The following trust funds 179
shall be placed in the department: 180
(5) Division of Florida Condominiums, Timeshares, Yacht 181
Brokers, and Mobile Homes Trust Fund. 182
Section 8. Section 475.455, Florida Statutes, is amended 183
to read: 184
475.455 Exchange of disciplinary information. —The 185
commission shall inform the Division of Florida Condominiums, 186
Timeshares, Yacht Brokers, and Mobile Homes of the Department of 187
Business and Professional Regulation of any disciplinary action 188
the commission has taken against any of its licensees. The 189
division shall inform the commission of any disciplinary action 190
the division has taken against any broker or sales associate 191
registered with the division. 192
Section 9. Section 509.512, Florida Statutes, is amended 193
to read: 194
509.512 Timeshare plan developer and exchange company 195
exemption.—Sections 509.501-509.511 do not apply to a developer 196
of a timeshare plan or an exchange company approved by the 197
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 198
Mobile Homes pursuant to chapter 721, but only to the exten t 199
that the developer or exchange company engages in conduct 200
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regulated under chapter 721. 201
Section 10. Paragraph (h) of subsection (1) of section 202
559.935, Florida Statutes, is amended to read: 203
559.935 Exemptions. — 204
(1) This part does not apply to: 205
(h) A developer of a timeshare plan or an exchange company 206
approved by the Division of Florida Condominiums, Timeshares, 207
Yacht Brokers, and Mobile Homes pursuant to chapter 721, but 208
only to the extent that the developer or exchange company 209
engages in conduct regulated under chapter 721; or 210
Section 11. Subsection (17) of section 718.103, Florida 211
Statutes, is amended to read: 212
718.103 Definitions. —As used in this chapter, the term: 213
(17) "Division" means the Division of Florida 214
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes of the 215
Department of Business and Professional Regulation. 216
Section 12. Paragraph (c) of subsection (4) of section 217
718.105, Florida Statutes, is amended to read: 218
718.105 Recording of declaration. — 219
(4) 220
(c) If the sum of money held by the clerk has not been 221
paid to the developer or association as provided in paragraph 222
(b) within 5 years after the date the declaration was originally 223
recorded, the clerk may notify, in writing, the registered agent 224
of the association that the sum is still available and the 225
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purpose for which it was deposited. If the association does not 226
record the certificate within 90 days after the clerk has given 227
the notice, the clerk may disburse the money to the developer. 228
If the developer cannot be located, the clerk shall disburse the 229
money to the Division of Florida Condominiums, Timeshares, Yacht 230
Brokers, and Mobile Homes for deposit in the Division of Florida 231
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 232
Fund. 233
Section 13. Subsection (4) of section 718.1255, Florida 234
Statutes, is amended to read: 235
718.1255 Alternative dispute resolution; mediation; 236
nonbinding arbitration; applicability. — 237
(4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES. —The 238
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 239
Mobile Homes of the Department of Business and Professional 240
Regulation may employ full -time attorneys to act as arbitrators 241
to conduct the arbitration hearings provided by this chapter. 242
The division may also certify attorneys who are not employed by 243
the division to act as arbitrators to conduct the arbitration 244
hearings provided by this chapter. A person may not be employed 245
by the department as a full -time arbitrator unless he or she is 246
a member in good standin g of The Florida Bar. A person may only 247
be certified by the division to act as an arbitrator if he or 248
she has been a member in good standing of The Florida Bar for at 249
least 5 years and has mediated or arbitrated at least 10 250
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disputes involving condominiums in this state during the 3 years 251
immediately preceding the date of application, mediated or 252
arbitrated at least 30 disputes in any subject area in this 253
state during the 3 years immediately preceding the date of 254
application, or attained board certification in real estate law 255
or condominium and planned development law from The Florida Bar. 256
Arbitrator certification is valid for 1 year. An arbitrator who 257
does not maintain the minimum qualifications for initial 258
certification may not have his or her certification renewed. The 259
department may not enter into a legal services contract for an 260
arbitration hearing under this chapter with an attorney who is 261
not a certified arbitrator unless a certified arbitrator is not 262
available within 50 miles of the dispute. The depart ment shall 263
adopt rules of procedure to govern such arbitration hearings 264
including mediation incident thereto. The decision of an 265
arbitrator is final; however, a decision is not deemed final 266
agency action. Nothing in this provision shall be construed to 267
foreclose parties from proceeding in a trial de novo unless the 268
parties have agreed that the arbitration is binding. If judicial 269
proceedings are initiated, the final decision of the arbitrator 270
is admissible in evidence in the trial de novo. 271
(a) Before the institution of court litigation, a party to 272
a dispute, other than an election or recall dispute, shall 273
either petition the division for nonbinding arbitration or 274
initiate presuit mediation as provided in subsection (5). 275
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Arbitration is binding on the parties if all parties in 276
arbitration agree to be bound in a writing filed in arbitration. 277
The petition must be accompanied by a filing fee in the amount 278
of $50. Filing fees collected under this section must be used to 279
defray the expenses of the alternative dispu te resolution 280
program. 281
(b) The petition must recite, and have attached thereto, 282
supporting proof that the petitioner gave the respondents: 283
1. Advance written notice of the specific nature of the 284
dispute; 285
2. A demand for relief, and a reasonable oppor tunity to 286
comply or to provide the relief; and 287
3. Notice of the intention to file an arbitration petition 288
or other legal action in the absence of a resolution of the 289
dispute. 290
291
Failure to include the allegations or proof of compliance with 292
these prerequisites requires dismissal of the petition without 293
prejudice. 294
(c) Upon receipt, the petition shall be promptly reviewed 295
by the division to determine the existence of a dispute and 296
compliance with the requirements of paragraphs (a) and (b). If 297
emergency relief is required and is not available through 298
arbitration, a motion to stay the arbitration may be filed. The 299
motion must be accompanied by a verified petition alleging facts 300
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that, if proven, would support entry of a temporary injunction, 301
and if an appropriate motion and supporting papers are filed, 302
the division may abate the arbitration pending a court hearing 303
and disposition of a motion for temporary injunction. 304
(d) Upon determination by the division that a dispute 305
exists and that the petition su bstantially meets the 306
requirements of paragraphs (a) and (b) and any other applicable 307
rules, the division shall assign or enter into a contract with 308
an arbitrator and serve a copy of the petition upon all 309
respondents. The arbitrator shall conduct a hearing within 30 310
days after being assigned or entering into a contract unless the 311
petition is withdrawn or a continuance is granted for good cause 312
shown. 313
(e) Before or after the filing of the respondents' answer 314
to the petition, any party may request that the arbitrator refer 315
the case to mediation under this section and any rules adopted 316
by the division. Upon receipt of a request for mediation, the 317
division shall promptly contact the parties to determine if 318
there is agreement that mediation would be appropriate . If all 319
parties agree, the dispute must be referred to mediation. 320
Notwithstanding a lack of an agreement by all parties, the 321
arbitrator may refer a dispute to mediation at any time. 322
(f) Upon referral of a case to mediation, the parties must 323
select a mutually acceptable mediator. To assist in the 324
selection, the arbitrator shall provide the parties with a list 325
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of both volunteer and paid mediators that have been certified by 326
the division under s. 718.501. If the parties are unable to 327
agree on a mediator wit hin the time allowed by the arbitrator, 328
the arbitrator shall appoint a mediator from the list of 329
certified mediators. If a case is referred to mediation, the 330
parties shall attend a mediation conference, as scheduled by the 331
parties and the mediator. If any party fails to attend a duly 332
noticed mediation conference, without the permission or approval 333
of the arbitrator or mediator, the arbitrator must impose 334
sanctions against the party, including the striking of any 335
pleadings filed, the entry of an order of dis missal or default 336
if appropriate, and the award of costs and attorney fees 337
incurred by the other parties. Unless otherwise agreed to by the 338
parties or as provided by order of the arbitrator, a party is 339
deemed to have appeared at a mediation conference by t he 340
physical presence of the party or its representative having full 341
authority to settle without further consultation, provided that 342
an association may comply by having one or more representatives 343
present with full authority to negotiate a settlement and 344
recommend that the board of administration ratify and approve 345
such a settlement within 5 days from the date of the mediation 346
conference. The parties shall share equally the expense of 347
mediation, unless they agree otherwise. 348
(g) The purpose of mediation as provided for by this 349
section is to present the parties with an opportunity to resolve 350
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the underlying dispute in good faith, and with a minimum 351
expenditure of time and resources. 352
(h) Mediation proceedings must generally be conducted in 353
accordance with the Florida Rules of Civil Procedure, and these 354
proceedings are privileged and confidential to the same extent 355
as court-ordered mediation. Persons who are not parties to the 356
dispute are not allowed to attend the mediation conference 357
without the consent of all parties, with the exception of 358
counsel for the parties and corporate representatives designated 359
to appear for a party. If the mediator declares an impasse after 360
a mediation conference has been held, the arbitration proceeding 361
terminates, unless all partie s agree in writing to continue the 362
arbitration proceeding, in which case the arbitrator's decision 363
shall be binding or nonbinding, as agreed upon by the parties; 364
in the arbitration proceeding, the arbitrator shall not consider 365
any evidence relating to the unsuccessful mediation except in a 366
proceeding to impose sanctions for failure to appear at the 367
mediation conference. If the parties do not agree to continue 368
arbitration, the arbitrator shall enter an order of dismissal, 369
and either party may institute a sui t in a court of competent 370
jurisdiction. The parties may seek to recover any costs and 371
attorney fees incurred in connection with arbitration and 372
mediation proceedings under this section as part of the costs 373
and fees that may be recovered by the prevailing p arty in any 374
subsequent litigation. 375
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(i) Arbitration shall be conducted according to rules 376
adopted by the division. The filing of a petition for 377
arbitration shall toll the applicable statute of limitations. 378
(j) At the request of any party to the arbitrat ion, the 379
arbitrator shall issue subpoenas for the attendance of witnesses 380
and the production of books, records, documents, and other 381
evidence and any party on whose behalf a subpoena is issued may 382
apply to the court for orders compelling such attendance an d 383
production. Subpoenas shall be served and shall be enforceable 384
in the manner provided by the Florida Rules of Civil Procedure. 385
Discovery may, in the discretion of the arbitrator, be permitted 386
in the manner provided by the Florida Rules of Civil Procedure . 387
Rules adopted by the division may authorize any reasonable 388
sanctions except contempt for a violation of the arbitration 389
procedural rules of the division or for the failure of a party 390
to comply with a reasonable nonfinal order issued by an 391
arbitrator which is not under judicial review. 392
(k) The arbitration decision shall be rendered within 30 393
days after the hearing and presented to the parties in writing. 394
An arbitration decision is final in those disputes in which the 395
parties have agreed to be bound. An a rbitration decision is also 396
final if a complaint for a trial de novo is not filed in a court 397
of competent jurisdiction in which the condominium is located 398
within 30 days. The right to file for a trial de novo entitles 399
the parties to file a complaint in the appropriate trial court 400
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for a judicial resolution of the dispute. The prevailing party 401
in an arbitration proceeding shall be awarded the costs of the 402
arbitration and reasonable attorney fees in an amount determined 403
by the arbitrator. Such an award shall i nclude the costs and 404
reasonable attorney fees incurred in the arbitration proceeding 405
as well as the costs and reasonable attorney fees incurred in 406
preparing for and attending any scheduled mediation. An 407
arbitrator's failure to render a written decision wit hin 30 days 408
after the hearing may result in the cancellation of his or her 409
arbitration certification. 410
(l) The party who files a complaint for a trial de novo 411
shall be assessed the other party's arbitration costs, court 412
costs, and other reasonable costs, including attorney fees, 413
investigation expenses, and expenses for expert or other 414
testimony or evidence incurred after the arbitration hearing if 415
the judgment upon the trial de novo is not more favorable than 416
the arbitration decision. If the judgment is mo re favorable, the 417
party who filed a complaint for trial de novo shall be awarded 418
reasonable court costs and attorney fees. 419
(m) Any party to an arbitration proceeding may enforce an 420
arbitration award by filing a petition in a court of competent 421
jurisdiction in which the condominium is located. A petition may 422
not be granted unless the time for appeal by the filing of a 423
complaint for trial de novo has expired. If a complaint for a 424
trial de novo has been filed, a petition may not be granted with 425
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respect to an arbitration award that has been stayed. If the 426
petition for enforcement is granted, the petitioner shall 427
recover reasonable attorney fees and costs incurred in enforcing 428
the arbitration award. A mediation settlement may also be 429
enforced through the county or circuit court, as applicable, and 430
any costs and fees incurred in the enforcement of a settlement 431
agreement reached at mediation must be awarded to the prevailing 432
party in any enforcement action. 433
Section 14. Paragraph (d) of subsection (1) and parag raph 434
(b) of subsection (2) of section 718.501, Florida Statutes, are 435
amended to read: 436
718.501 Authority, responsibility, and duties of Division 437
of Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 438
Homes.— 439
(1) The division may enforce and ensu re compliance with 440
this chapter and rules relating to the development, 441
construction, sale, lease, ownership, operation, and management 442
of residential condominium units and complaints related to the 443
procedural completion of milestone inspections under s. 55 3.899. 444
In performing its duties, the division has complete jurisdiction 445
to investigate complaints and enforce compliance with respect to 446
associations that are still under developer control or the 447
control of a bulk assignee or bulk buyer pursuant to part VI I of 448
this chapter and complaints against developers, bulk assignees, 449
or bulk buyers involving improper turnover or failure to 450
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turnover, pursuant to s. 718.301. However, after turnover has 451
occurred, the division has jurisdiction to investigate 452
complaints related only to financial issues, elections, and the 453
maintenance of and unit owner access to association records 454
under s. 718.111(12), and the procedural completion of 455
structural integrity reserve studies under s. 718.112(2)(g). 456
(d) Notwithstanding any rem edies available to unit owners 457
and associations, if the division has reasonable cause to 458
believe that a violation of any provision of this chapter or 459
related rule has occurred, the division may institute 460
enforcement proceedings in its own name against any developer, 461
bulk assignee, bulk buyer, association, officer, or member of 462
the board of administration, or its assignees or agents, as 463
follows: 464
1. The division may permit a person whose conduct or 465
actions may be under investigation to waive formal proceedi ngs 466
and enter into a consent proceeding whereby orders, rules, or 467
letters of censure or warning, whether formal or informal, may 468
be entered against the person. 469
2. The division may issue an order requiring the 470
developer, bulk assignee, bulk buyer, associa tion, developer-471
designated officer, or developer -designated member of the board 472
of administration, developer -designated assignees or agents, 473
bulk assignee-designated assignees or agents, bulk buyer -474
designated assignees or agents, community association mana ger, 475
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or community association management firm to cease and desist 476
from the unlawful practice and take such affirmative action as 477
in the judgment of the division carry out the purposes of this 478
chapter. If the division finds that a developer, bulk assignee, 479
bulk buyer, association, officer, or member of the board of 480
administration, or its assignees or agents, is violating or is 481
about to violate any provision of this chapter, any rule adopted 482
or order issued by the division, or any written agreement 483
entered into with the division, and presents an immediate danger 484
to the public requiring an immediate final order, it may issue 485
an emergency cease and desist order reciting with particularity 486
the facts underlying such findings. The emergency cease and 487
desist order is effective for 90 days. If the division begins 488
nonemergency cease and desist proceedings, the emergency cease 489
and desist order remains effective until the conclusion of the 490
proceedings under ss. 120.569 and 120.57. 491
3. If a developer, bulk assignee, or b ulk buyer fails to 492
pay any restitution determined by the division to be owed, plus 493
any accrued interest at the highest rate permitted by law, 494
within 30 days after expiration of any appellate time period of 495
a final order requiring payment of restitution or the conclusion 496
of any appeal thereof, whichever is later, the division must 497
bring an action in circuit or county court on behalf of any 498
association, class of unit owners, lessees, or purchasers for 499
restitution, declaratory relief, injunctive relief, or any other 500
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available remedy. The division may also temporarily revoke its 501
acceptance of the filing for the developer to which the 502
restitution relates until payment of restitution is made. 503
4. The division may petition the court for appointment of 504
a receiver or conservator. If appointed, the receiver or 505
conservator may take action to implement the court order to 506
ensure the performance of the order and to remedy any breach 507
thereof. In addition to all other means provided by law for the 508
enforcement of an injuncti on or temporary restraining order, the 509
circuit court may impound or sequester the property of a party 510
defendant, including books, papers, documents, and related 511
records, and allow the examination and use of the property by 512
the division and a court -appointed receiver or conservator. 513
5. The division may apply to the circuit court for an 514
order of restitution whereby the defendant in an action brought 515
under subparagraph 4. is ordered to make restitution of those 516
sums shown by the division to have been obtaine d by the 517
defendant in violation of this chapter. At the option of the 518
court, such restitution is payable to the conservator or 519
receiver appointed under subparagraph 4. or directly to the 520
persons whose funds or assets were obtained in violation of this 521
chapter. 522
6. The division may impose a civil penalty against a 523
developer, bulk assignee, or bulk buyer, or association, or its 524
assignee or agent, for any violation of this chapter or related 525
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rule. The division may impose a civil penalty individually 526
against an officer or board member who willfully and knowingly 527
violates this chapter, an adopted rule, or a final order of the 528
division; may order the removal of such individual as an officer 529
or from the board of administration or as an officer of the 530
association; and may prohibit such individual from serving as an 531
officer or on the board of a community association for a period 532
of time. The term "willfully and knowingly" means that the 533
division informed the officer or board member that his or her 534
action or intended action violates this chapter, a rule adopted 535
under this chapter, or a final order of the division and that 536
the officer or board member refused to comply with the 537
requirements of this chapter, a rule adopted under this chapter, 538
or a final order of the divis ion. The division, before 539
initiating formal agency action under chapter 120, must afford 540
the officer or board member an opportunity to voluntarily 541
comply, and an officer or board member who complies within 10 542
days is not subject to a civil penalty. A penal ty may be imposed 543
on the basis of each day of continuing violation, but the 544
penalty for any offense may not exceed $5,000. The division 545
shall adopt, by rule, penalty guidelines applicable to possible 546
violations or to categories of violations of this chapte r or 547
rules adopted by the division. The guidelines must specify a 548
meaningful range of civil penalties for each such violation of 549
the statute and rules and must be based upon the harm caused by 550
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the violation, upon the repetition of the violation, and upon 551
such other factors deemed relevant by the division. For example, 552
the division may consider whether the violations were committed 553
by a developer, bulk assignee, or bulk buyer, or owner -554
controlled association, the size of the association, and other 555
factors. The guidelines must designate the possible mitigating 556
or aggravating circumstances that justify a departure from the 557
range of penalties provided by the rules. It is the legislative 558
intent that minor violations be distinguished from those which 559
endanger the health, safety, or welfare of the condominium 560
residents or other persons and that such guidelines provide 561
reasonable and meaningful notice to the public of likely 562
penalties that may be imposed for proscribed conduct. This 563
subsection does not limit the abil ity of the division to 564
informally dispose of administrative actions or complaints by 565
stipulation, agreed settlement, or consent order. All amounts 566
collected shall be deposited with the Chief Financial Officer to 567
the credit of the Division of Florida Condom iniums, Timeshares, 568
Yacht Brokers, and Mobile Homes Trust Fund. If a developer, bulk 569
assignee, or bulk buyer fails to pay the civil penalty and the 570
amount deemed to be owed to the association, the division shall 571
issue an order directing that such developer , bulk assignee, or 572
bulk buyer cease and desist from further operation until such 573
time as the civil penalty is paid or may pursue enforcement of 574
the penalty in a court of competent jurisdiction. If an 575
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association fails to pay the civil penalty, the divisio n shall 576
pursue enforcement in a court of competent jurisdiction, and the 577
order imposing the civil penalty or the cease and desist order 578
is not effective until 20 days after the date of such order. Any 579
action commenced by the division shall be brought in th e county 580
in which the division has its executive offices or in the county 581
where the violation occurred. 582
7. If a unit owner presents the division with proof that 583
the unit owner has requested access to official records in 584
writing by certified mail, and tha t after 10 days the unit owner 585
again made the same request for access to official records in 586
writing by certified mail, and that more than 10 days has 587
elapsed since the second request and the association has still 588
failed or refused to provide access to off icial records as 589
required by this chapter, the division shall issue a subpoena 590
requiring production of the requested records where the records 591
are kept pursuant to s. 718.112. 592
8. In addition to subparagraph 6., the division may seek 593
the imposition of a c ivil penalty through the circuit court for 594
any violation for which the division may issue a notice to show 595
cause under paragraph (r). The civil penalty shall be at least 596
$500 but no more than $5,000 for each violation. The court may 597
also award to the preva iling party court costs and reasonable 598
attorney fees and, if the division prevails, may also award 599
reasonable costs of investigation. 600
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(2) 601
(b) All fees shall be deposited in the Division of Florida 602
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 603
Fund as provided by law. 604
Section 15. Subsection (1) of section 718.5011, Florida 605
Statutes, is amended to read: 606
718.5011 Ombudsman; appointment; administration. — 607
(1) There is created an Office of the Condominium 608
Ombudsman, to be located for administrative purposes within the 609
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 610
Mobile Homes. The functions of the office shall be funded by the 611
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 612
Mobile Homes Trust Fund. The ombudsman shall be a bureau chief 613
of the division, and the office shall be set within the division 614
in the same manner as any other bureau is staffed and funded. 615
Section 16. Paragraph (a) of subsection (2) of section 616
718.502, Florida Statutes, is amended to read: 617
718.502 Filing prior to sale or lease. — 618
(2)(a) Prior to filing as required by subsection (1), and 619
prior to acquiring an ownership, leasehold, or contractual 620
interest in the land upon which the condominium is to be 621
developed, a developer shall not offer a contract for purchase 622
of a unit or lease of a unit for more than 5 years. However, the 623
developer may accept deposits for reservations upon the approval 624
of a fully executed escrow agreement and reservation agreement 625
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form properly filed with the Division of Florida Condominiums, 626
Timeshares, Yacht Brokers, and Mobile Homes. Each filing of a 627
proposed reservation program shall be accompanied by a filing 628
fee of $250. Reservations shall not be taken on a proposed 629
condominium unless the developer has an ownership, leasehold, or 630
contractual interest in the land upon which the condominium is 631
to be developed. The division shall notify the developer within 632
20 days of receipt of the reservation filing of any deficiencies 633
contained therein. Such notification shall not preclude the 634
determination of reservation filing deficiencies at a later 635
date, nor shall it relieve the developer of any responsibility 636
under the law. The escrow agreement and the reservation 637
agreement form shall include a statement of the right of the 638
prospective purchaser to an immediate unqualified refund of the 639
reservation deposit moneys upon written request to the escrow 640
agent by the prospective purchaser or t he developer. 641
Section 17. Paragraph (b) of subsection (2) of section 642
718.503, Florida Statutes, is amended to read: 643
718.503 Developer disclosure prior to sale; nondeveloper 644
unit owner disclosure prior to sale; voidability. — 645
(2) NONDEVELOPER DISCLOS URE.— 646
(b) The prospective purchaser is also entitled to receive 647
from the seller a copy of a governance form. Such form shall be 648
provided by the division summarizing governance of condominium 649
associations. In addition to such other information as the 650
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division considers helpful to a prospective purchaser in 651
understanding association governance, the governance form shall 652
address the following subjects: 653
1. The role of the board in conducting the day -to-day 654
affairs of the association on behalf of, and in the best 655
interests of, the owners. 656
2. The board's responsibility to provide advance notice of 657
board and membership meetings. 658
3. The rights of owners to attend and speak at board and 659
membership meetings. 660
4. The responsibility of the board and of owners w ith 661
respect to maintenance of the condominium property. 662
5. The responsibility of the board and owners to abide by 663
the condominium documents, this chapter, rules adopted by the 664
division, and reasonable rules adopted by the board. 665
6. Owners' rights to in spect and copy association records 666
and the limitations on such rights. 667
7. Remedies available to owners with respect to actions by 668
the board which may be abusive or beyond the board's power and 669
authority. 670
8. The right of the board to hire a property man agement 671
firm, subject to its own primary responsibility for such 672
management. 673
9. The responsibility of owners with regard to payment of 674
regular or special assessments necessary for the operation of 675
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the property and the potential consequences of failure to pay 676
such assessments. 677
10. The voting rights of owners. 678
11. Rights and obligations of the board in enforcement of 679
rules in the condominium documents and rules adopted by the 680
board. 681
682
The governance form shall also include the following statement 683
in conspicuous type: "This publication is intended as an 684
informal educational overview of condominium governance. In the 685
event of a conflict, the provisions of chapter 718, Florida 686
Statutes, rules adopted by the Division of Florida Condominiums, 687
Timeshares, Yacht Brokers, and Mobile Homes of the Department of 688
Business and Professional Regulation, the provisions of the 689
condominium documents, and reasonable rules adopted by the 690
condominium association's board of administration prevail over 691
the contents of this publi cation." 692
Section 18. Section 718.504, Florida Statutes, is amended 693
to read: 694
718.504 Prospectus or offering circular. —Every developer 695
of a residential condominium which contains more than 20 696
residential units, or which is part of a group of residentia l 697
condominiums which will be served by property to be used in 698
common by unit owners of more than 20 residential units, shall 699
prepare a prospectus or offering circular and file it with the 700
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Division of Florida Condominiums, Timeshares, Yacht Brokers, and 701
Mobile Homes prior to entering into an enforceable contract of 702
purchase and sale of any unit or lease of a unit for more than 5 703
years and shall furnish a copy of the prospectus or offering 704
circular to each buyer. In addition to the prospectus or 705
offering circular, each buyer shall be furnished a separate page 706
entitled "Frequently Asked Questions and Answers," which shall 707
be in accordance with a format approved by the division and a 708
copy of the financial information required by s. 718.111. This 709
page shall, in readable language, inform prospective purchasers 710
regarding their voting rights and unit use restrictions, 711
including restrictions on the leasing of a unit; shall indicate 712
whether and in what amount the unit owners or the association is 713
obligated to pay rent or land use fees for recreational or other 714
commonly used facilities; shall contain a statement identifying 715
that amount of assessment which, pursuant to the budget, would 716
be levied upon each unit type, exclusive of any special 717
assessments, and which shall f urther identify the basis upon 718
which assessments are levied, whether monthly, quarterly, or 719
otherwise; shall state and identify any court cases in which the 720
association is currently a party of record in which the 721
association may face liability in excess of $100,000; and which 722
shall further state whether membership in a recreational 723
facilities association is mandatory, and if so, shall identify 724
the fees currently charged per unit type. The division shall by 725
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rule require such other disclosure as in its judgme nt will 726
assist prospective purchasers. The prospectus or offering 727
circular may include more than one condominium, although not all 728
such units are being offered for sale as of the date of the 729
prospectus or offering circular. The prospectus or offering 730
circular must contain the following information: 731
(1) The front cover or the first page must contain only: 732
(a) The name of the condominium. 733
(b) The following statements in conspicuous type: 734
1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT 735
MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT. 736
2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN 737
NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES, 738
ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES 739
MATERIALS. 740
3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY 741
STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS 742
PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT 743
REPRESENTATIONS. 744
(2) Summary: The next page must contain all statements 745
required to be in conspicuous type in the prospectus or offering 746
circular. 747
(3) A separate index of the contents and exhibits of the 748
prospectus. 749
(4) Beginning on the first page of the text (not including 750
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the summary and index), a description of the condominium, 751
including, but not limited to, the following information: 752
(a) Its name and location. 753
(b) A description of the condominium property, including, 754
without limitation: 755
1. The number of buildings, the number of units in each 756
building, the number of bathrooms and be drooms in each unit, and 757
the total number of units, if the condominium is not a phase 758
condominium, or the maximum number of buildings that may be 759
contained within the condominium, the minimum and maximum 760
numbers of units in each building, the minimum and m aximum 761
numbers of bathrooms and bedrooms that may be contained in each 762
unit, and the maximum number of units that may be contained 763
within the condominium, if the condominium is a phase 764
condominium. 765
2. The page in the condominium documents where a copy of 766
the plot plan and survey of the condominium is located. 767
3. The estimated latest date of completion of 768
constructing, finishing, and equipping. In lieu of a date, the 769
description shall include a statement that the estimated date of 770
completion of the condo minium is in the purchase agreement and a 771
reference to the article or paragraph containing that 772
information. 773
(c) The maximum number of units that will use facilities 774
in common with the condominium. If the maximum number of units 775
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will vary, a description of the basis for variation and the 776
minimum amount of dollars per unit to be spent for additional 777
recreational facilities or enlargement of such facilities. If 778
the addition or enlargement of facilities will result in a 779
material increase of a unit owner's ma intenance expense or 780
rental expense, if any, the maximum increase and limitations 781
thereon shall be stated. 782
(5)(a) A statement in conspicuous type describing whether 783
the condominium is created and being sold as fee simple 784
interests or as leasehold interes ts. If the condominium is 785
created or being sold on a leasehold, the location of the lease 786
in the disclosure materials shall be stated. 787
(b) If timeshare estates are or may be created with 788
respect to any unit in the condominium, a statement in 789
conspicuous type stating that timeshare estates are created and 790
being sold in units in the condominium. 791
(6) A description of the recreational and other commonly 792
used facilities that will be used only by unit owners of the 793
condominium, including, but not limited to, the following: 794
(a) Each room and its intended purposes, location, 795
approximate floor area, and capacity in numbers of people. 796
(b) Each swimming pool, as to its general location, 797
approximate size and depths, approximate deck size and capacity, 798
and whether heated. 799
(c) Additional facilities, as to the number of each 800
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facility, its approximate location, approximate size, and 801
approximate capacity. 802
(d) A general description of the items of personal 803
property and the approximate number of each item of persona l 804
property that the developer is committing to furnish for each 805
room or other facility or, in the alternative, a representation 806
as to the minimum amount of expenditure that will be made to 807
purchase the personal property for the facility. 808
(e) The estimated date when each room or other facility 809
will be available for use by the unit owners. 810
(f)1. An identification of each room or other facility to 811
be used by unit owners that will not be owned by the unit owners 812
or the association; 813
2. A reference to the l ocation in the disclosure materials 814
of the lease or other agreements providing for the use of those 815
facilities; and 816
3. A description of the terms of the lease or other 817
agreements, including the length of the term; the rent payable, 818
directly or indirectly , by each unit owner, and the total rent 819
payable to the lessor, stated in monthly and annual amounts for 820
the entire term of the lease; and a description of any option to 821
purchase the property leased under any such lease, including the 822
time the option may b e exercised, the purchase price or how it 823
is to be determined, the manner of payment, and whether the 824
option may be exercised for a unit owner's share or only as to 825
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the entire leased property. 826
(g) A statement as to whether the developer may provide 827
additional facilities not described above; their general 828
locations and types; improvements or changes that may be made; 829
the approximate dollar amount to be expended; and the maximum 830
additional common expense or cost to the individual unit owners 831
that may be charged during the first annual period of operation 832
of the modified or added facilities. 833
834
Descriptions as to locations, areas, capacities, numbers, 835
volumes, or sizes may be stated as approximations or minimums. 836
(7) A description of the recreational and othe r facilities 837
that will be used in common with other condominiums, community 838
associations, or planned developments which require the payment 839
of the maintenance and expenses of such facilities, directly or 840
indirectly, by the unit owners. The description shal l include, 841
but not be limited to, the following: 842
(a) Each building and facility committed to be built. 843
(b) Facilities not committed to be built except under 844
certain conditions, and a statement of those conditions or 845
contingencies. 846
(c) As to each faci lity committed to be built, or which 847
will be committed to be built upon the happening of one of the 848
conditions in paragraph (b), a statement of whether it will be 849
owned by the unit owners having the use thereof or by an 850
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association or other entity which wi ll be controlled by them, or 851
others, and the location in the exhibits of the lease or other 852
document providing for use of those facilities. 853
(d) The year in which each facility will be available for 854
use by the unit owners or, in the alternative, the maxim um 855
number of unit owners in the project at the time each of all of 856
the facilities is committed to be completed. 857
(e) A general description of the items of personal 858
property, and the approximate number of each item of personal 859
property, that the developer is committing to furnish for each 860
room or other facility or, in the alternative, a representation 861
as to the minimum amount of expenditure that will be made to 862
purchase the personal property for the facility. 863
(f) If there are leases, a description thereof, including 864
the length of the term, the rent payable, and a description of 865
any option to purchase. 866
867
Descriptions shall include location, areas, capacities, numbers, 868
volumes, or sizes and may be stated as approximations or 869
minimums. 870
(8) Recreation lease or associated club membership: 871
(a) If any recreational facilities or other facilities 872
offered by the developer and available to, or to be used by, 873
unit owners are to be leased or have club membership associated, 874
the following statement in conspicuo us type shall be included: 875
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THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS 876
CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS 877
CONDOMINIUM. There shall be a reference to the location in the 878
disclosure materials where the recreati on lease or club 879
membership is described in detail. 880
(b) If it is mandatory that unit owners pay a fee, rent, 881
dues, or other charges under a recreational facilities lease or 882
club membership for the use of facilities, there shall be in 883
conspicuous type the applicable statement: 884
1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS 885
MANDATORY FOR UNIT OWNERS; or 886
2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP, 887
TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or 888
3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE 889
COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, 890
REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES 891
LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or 892
4. A similar statement of the nature of the organ ization 893
or the manner in which the use rights are created, and that unit 894
owners are required to pay. 895
896
Immediately following the applicable statement, the location in 897
the disclosure materials where the development is described in 898
detail shall be stated. 899
(c) If the developer, or any other person other than the 900
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unit owners and other persons having use rights in the 901
facilities, reserves, or is entitled to receive, any rent, fee, 902
or other payment for the use of the facilities, then there shall 903
be the following statement in conspicuous type: THE UNIT OWNERS 904
OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR 905
RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately 906
following this statement, the location in the disclosure 907
materials where the rent or land u se fees are described in 908
detail shall be stated. 909
(d) If, in any recreation format, whether leasehold, club, 910
or other, any person other than the association has the right to 911
a lien on the units to secure the payment of assessments, rent, 912
or other exactions, there shall appear a statement in 913
conspicuous type in substantially the following form: 914
1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 915
SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE 916
RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE T HESE 917
PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or 918
2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 919
SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE 920
FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL 921
OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE 922
THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN. 923
924
Immediately following the applicable statement, the location in 925
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the disclosure materials where the lien or lien right is 926
described in detail shall be state d. 927
(9) If the developer or any other person has the right to 928
increase or add to the recreational facilities at any time after 929
the establishment of the condominium whose unit owners have use 930
rights therein, without the consent of the unit owners or 931
associations being required, there shall appear a statement in 932
conspicuous type in substantially the following form: 933
RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT 934
OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this 935
statement, the location in the disclosure materials where such 936
reserved rights are described shall be stated. 937
(10) A statement of whether the developer's plan includes 938
a program of leasing units rather than selling them, or leasing 939
units and selling them subject to suc h leases. If so, there 940
shall be a description of the plan, including the number and 941
identification of the units and the provisions and term of the 942
proposed leases, and a statement in boldfaced type that: THE 943
UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE. 944
(11) The arrangements for management of the association 945
and maintenance and operation of the condominium property and of 946
other property that will serve the unit owners of the 947
condominium property, and a description of the management 948
contract and all other c ontracts for these purposes having a 949
term in excess of 1 year, including the following: 950
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(a) The names of contracting parties. 951
(b) The term of the contract. 952
(c) The nature of the services included. 953
(d) The compensation, stated on a monthly and annua l 954
basis, and provisions for increases in the compensation. 955
(e) A reference to the volumes and pages of the 956
condominium documents and of the exhibits containing copies of 957
such contracts. 958
959
Copies of all described contracts shall be attached as exhibits. 960
If there is a contract for the management of the condominium 961
property, then a statement in conspicuous type in substantially 962
the following form shall appear, identifying the proposed or 963
existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR 964
THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE 965
CONTRACT MANAGER). Immediately following this statement, the 966
location in the disclosure materials of the contract for 967
management of the condominium property shall be stated. 968
(12) If the developer or any other person or persons other 969
than the unit owners has the right to retain control of the 970
board of administration of the association for a period of time 971
which can exceed 1 year after the closing of the sale of a 972
majority of the units in that condominium t o persons other than 973
successors or alternate developers, then a statement in 974
conspicuous type in substantially the following form shall be 975
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included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO 976
RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS 977
HAVE BEEN SOLD. Immediately following this statement, the 978
location in the disclosure materials where this right to control 979
is described in detail shall be stated. 980
(13) If there are any restrictions upon the sale, 981
transfer, conveyance, or leasing of a unit, then a statement in 982
conspicuous type in substantially the following form shall be 983
included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR 984
CONTROLLED. Immediately following this statement, the location 985
in the disclosure materials where the restriction, limitation, 986
or control on the sale, lease, or transfer of units is described 987
in detail shall be stated. 988
(14) If the condominium is part of a phase project, the 989
following information shall be stated: 990
(a) A statement in conspicuous type in substantially the 991
following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND 992
UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following 993
this statement, the location in the disclosure materials where 994
the phasing is described shall be stated. 995
(b) A summary of the provisions of the declaration which 996
provide for the phasing. 997
(c) A statement as to whether or not residential buildings 998
and units which are added to the condominium may be 999
substantially different from the residential buildings and units 1000
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originally in the condominium. If the added residential 1001
buildings and units may be substantially different, there shall 1002
be a general description of the extent to which such added 1003
residential buildings and units may differ, and a statement in 1004
conspicuous type in substantially the following form shall be 1005
included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM 1006
MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND 1007
UNITS IN THE CONDOMINIUM. Immediately following this statement, 1008
the location in the disclosure materials where the extent to 1009
which added residential buildings and units may substantially 1010
differ is described shall be stated. 1011
(d) A statement of the maximum number of buildings 1012
containing units, the maximum and minimum numbers of units in 1013
each building, the maximum number of units, and the minimum and 1014
maximum square footage of the units that may be contained within 1015
each parcel of land which may be added to the condominium. 1016
(15) If a condominium created on or after July 1, 2000, is 1017
or may become part of a multicondominium, the following 1018
information must be provided: 1019
(a) A statement in conspicuous type in substantially the 1020
following form: THIS CONDOMINIUM IS (MAY BE) PART OF A 1021
MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL 1022
(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following 1023
this statement, the location in the prospectus or offering 1024
circular and its exhibits where the multicondominium aspects of 1025
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the offering are described must be stated. 1026
(b) A summary of the pro visions in the declaration, 1027
articles of incorporation, and bylaws which establish and 1028
provide for the operation of the multicondominium, including a 1029
statement as to whether unit owners in the condominium will have 1030
the right to use recreational or other fac ilities located or 1031
planned to be located in other condominiums operated by the same 1032
association, and the manner of sharing the common expenses 1033
related to such facilities. 1034
(c) A statement of the minimum and maximum number of 1035
condominiums, and the minimum and maximum number of units in 1036
each of those condominiums, which will or may be operated by the 1037
association, and the latest date by which the exact number will 1038
be finally determined. 1039
(d) A statement as to whether any of the condominiums in 1040
the multicondominium may include units intended to be used for 1041
nonresidential purposes and the purpose or purposes permitted 1042
for such use. 1043
(e) A general description of the location and approximate 1044
acreage of any land on which any additional condominiums to be 1045
operated by the association may be located. 1046
(16) If the condominium is created by conversion of 1047
existing improvements, the following information shall be 1048
stated: 1049
(a) The information required by s. 718.616. 1050
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(b) A caveat that there are no express warranties un less 1051
they are stated in writing by the developer. 1052
(17) A summary of the restrictions, if any, to be imposed 1053
on units concerning the use of any of the condominium property, 1054
including statements as to whether there are restrictions upon 1055
children and pets, and reference to the volumes and pages of the 1056
condominium documents where such restrictions are found, or if 1057
such restrictions are contained elsewhere, then a copy of the 1058
documents containing the restrictions shall be attached as an 1059
exhibit. 1060
(18) If there is any land that is offered by the developer 1061
for use by the unit owners and that is neither owned by them nor 1062
leased to them, the association, or any entity controlled by 1063
unit owners and other persons having the use rights to such 1064
land, a statement shall be made as to how such land will serve 1065
the condominium. If any part of such land will serve the 1066
condominium, the statement shall describe the land and the 1067
nature and term of service, and the declaration or other 1068
instrument creating such servitude shall be included as an 1069
exhibit. 1070
(19) The manner in which utility and other services, 1071
including, but not limited to, sewage and waste disposal, water 1072
supply, and storm drainage, will be provided and the person or 1073
entity furnishing them. 1074
(20) An explanation of the manner in which the 1075
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apportionment of common expenses and ownership of the common 1076
elements has been determined. 1077
(21) An estimated operating budget for the condominium and 1078
the association, and a schedule of the unit owner's expenses 1079
shall be attached as an exhibit and shall contain the following 1080
information: 1081
(a) The estimated monthly and annual expenses of the 1082
condominium and the association that are collected from unit 1083
owners by assessments. 1084
(b) The estimated monthly and annual expenses of each uni t 1085
owner for a unit, other than common expenses paid by all unit 1086
owners, payable by the unit owner to persons or entities other 1087
than the association, as well as to the association, including 1088
fees assessed pursuant to s. 718.113(1) for maintenance of 1089
limited common elements where such costs are shared only by 1090
those entitled to use the limited common element, and the total 1091
estimated monthly and annual expense. There may be excluded from 1092
this estimate expenses which are not provided for or 1093
contemplated by the c ondominium documents, including, but not 1094
limited to, the costs of private telephone; maintenance of the 1095
interior of condominium units, which is not the obligation of 1096
the association; maid or janitorial services privately 1097
contracted for by the unit owners; utility bills billed directly 1098
to each unit owner for utility services to his or her unit; 1099
insurance premiums other than those incurred for policies 1100
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obtained by the condominium; and similar personal expenses of 1101
the unit owner. A unit owner's estimated payme nts for 1102
assessments shall also be stated in the estimated amounts for 1103
the times when they will be due. 1104
(c) The estimated items of expenses of the condominium and 1105
the association, except as excluded under paragraph (b), 1106
including, but not limited to, the following items, which shall 1107
be stated as an association expense collectible by assessments 1108
or as unit owners' expenses payable to persons other than the 1109
association: 1110
1. Expenses for the association and condominium: 1111
a. Administration of the association . 1112
b. Management fees. 1113
c. Maintenance. 1114
d. Rent for recreational and other commonly used 1115
facilities. 1116
e. Taxes upon association property. 1117
f. Taxes upon leased areas. 1118
g. Insurance. 1119
h. Security provisions. 1120
i. Other expenses. 1121
j. Operating capital. 1122
k. Reserves. 1123
l. Fees payable to the division. 1124
2. Expenses for a unit owner: 1125
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a. Rent for the unit, if subject to a lease. 1126
b. Rent payable by the unit owner directly to the lessor 1127
or agent under any recreational lease or lease for the use of 1128
commonly used facilities, which use and payment is a mandatory 1129
condition of ownership and is not included in the common expense 1130
or assessments for common maintenance paid by the unit owners to 1131
the association. 1132
(d) The following statement in conspicuou s type: THE 1133
BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN 1134
ACCORDANCE WITH THE CONDOMINIUM ACT AND IS A GOOD FAITH ESTIMATE 1135
ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON 1136
FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF IT S PREPARATION. 1137
ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH 1138
CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN 1139
THE OFFERING. 1140
(e) Each budget for an association prepared by a developer 1141
consistent with this subsection shall be prepared in good faith 1142
and shall reflect accurate estimated amounts for the required 1143
items in paragraph (c) at the time of the filing of the offering 1144
circular with the division, and subsequent increased amounts of 1145
any item included in the association's es timated budget that are 1146
beyond the control of the developer shall not be considered an 1147
amendment that would give rise to rescission rights set forth in 1148
s. 718.503(1)(a) or (b), nor shall such increases modify, void, 1149
or otherwise affect any guarantee of the developer contained in 1150
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the offering circular or any purchase contract. It is the intent 1151
of this paragraph to clarify existing law. 1152
(f) The estimated amounts shall be stated for a period of 1153
at least 12 months and may distinguish between the period prior 1154
to the time unit owners other than the developer elect a 1155
majority of the board of administration and the period after 1156
that date. 1157
(22) A schedule of estimated closing expenses to be paid 1158
by a buyer or lessee of a unit and a statement of whether title 1159
opinion or title insurance policy is available to the buyer and, 1160
if so, at whose expense. 1161
(23) The identity of the developer and the chief operating 1162
officer or principal directing the creation and sale of the 1163
condominium and a statement of its and his or her experience in 1164
this field. 1165
(24) Copies of the following, to the extent they are 1166
applicable, shall be included as exhibits: 1167
(a) The declaration of condominium, or the proposed 1168
declaration if the declaration has not been recorded. 1169
(b) The articles of i ncorporation creating the 1170
association. 1171
(c) The bylaws of the association. 1172
(d) The ground lease or other underlying lease of the 1173
condominium. 1174
(e) The management agreement and all maintenance and other 1175
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contracts for management of the association and op eration of the 1176
condominium and facilities used by the unit owners having a 1177
service term in excess of 1 year. 1178
(f) The estimated operating budget for the condominium, 1179
the required schedule of unit owners' expenses, and the 1180
association's most recent structu ral integrity reserve study or 1181
a statement that the association has not completed a structural 1182
integrity reserve study. 1183
(g) A copy of the floor plan of the unit and the plot plan 1184
showing the location of the residential buildings and the 1185
recreation and other common areas. 1186
(h) The lease of recreational and other facilities that 1187
will be used only by unit owners of the subject condominium. 1188
(i) The lease of facilities used by owners and others. 1189
(j) The form of unit lease, if the offer is of a 1190
leasehold. 1191
(k) A declaration of servitude of properties serving the 1192
condominium but not owned by unit owners or leased to them or 1193
the association. 1194
(l) The statement of condition of the existing building or 1195
buildings, if the offering is of units in an operation be ing 1196
converted to condominium ownership. 1197
(m) The statement of inspection for termite damage and 1198
treatment of the existing improvements, if the condominium is a 1199
conversion. 1200
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(n) The form of agreement for sale or lease of units. 1201
(o) A copy of the agreement for escrow of payments made to 1202
the developer prior to closing. 1203
(p) A copy of the documents containing any restrictions on 1204
use of the property required by subsection (17). 1205
(q) A copy of the inspector -prepared summary of the 1206
milestone inspection report as described in ss. 553.899 and 1207
718.301(4)(p), as applicable. 1208
(25) Any prospectus or offering circular complying, prior 1209
to the effective date of this act, with the provisions of former 1210
ss. 711.69 and 711.802 may continue to be used without amend ment 1211
or may be amended to comply with this chapter. 1212
(26) A brief narrative description of the location and 1213
effect of all existing and intended easements located or to be 1214
located on the condominium property other than those described 1215
in the declaration. 1216
(27) If the developer is required by state or local 1217
authorities to obtain acceptance or approval of any dock or 1218
marina facilities intended to serve the condominium, a copy of 1219
any such acceptance or approval acquired by the time of filing 1220
with the division under s. 718.502(1) or a statement that such 1221
acceptance or approval has not been acquired or received. 1222
(28) Evidence demonstrating that the developer has an 1223
ownership, leasehold, or contractual interest in the land upon 1224
which the condominium is to be de veloped. 1225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 19. Section 718.508, Florida Statutes, is amended 1226
to read: 1227
718.508 Regulation by Division of Hotels and Restaurants. —1228
In addition to the authority, regulation, or control exercised 1229
by the Division of Florida Condominiums, Timeshares, Yacht 1230
Brokers, and Mobile Homes pursuant to this act with respect to 1231
condominiums, buildings included in a condominium property are 1232
subject to the authority, regulation, or control of the Division 1233
of Hotels and Restaurants of the Department of Business and 1234
Professional Regulation, to the extent provided in chapter 399. 1235
Section 20. Section 718.509, Florida Statutes, is amended 1236
to read: 1237
718.509 Division of Florida Condominiums, Timeshares, 1238
Yacht Brokers, and Mobile Homes Trust Fund. — 1239
(1) There is created within the State Treasury the 1240
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 1241
Mobile Homes Trust Fund to be used for the administration and 1242
operation of this chapter and chapters 718, 719, 721, and 723 by 1243
the division. 1244
(2) All moneys collected by the division from fees, fines, 1245
or penalties or from costs awarded to the division by a court or 1246
administrative final order shall be paid into the Division of 1247
Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 1248
Homes Trust Fund. The Le gislature shall appropriate funds from 1249
this trust fund sufficient to carry out the provisions of this 1250
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chapter and the provisions of law with respect to each category 1251
of business covered by the trust fund. The division shall 1252
maintain separate revenue accoun ts in the trust fund for each of 1253
the businesses regulated by the division. The division shall 1254
provide for the proportionate allocation among the accounts of 1255
expenses incurred by the division in the performance of its 1256
duties with respect to each of these bu sinesses. As part of its 1257
normal budgetary process, the division shall prepare an annual 1258
report of revenue and allocated expenses related to the 1259
operation of each of these businesses which may be used to 1260
determine fees charged by the division. This subsecti on shall 1261
operate pursuant to the provisions of s. 215.20. 1262
Section 21. Paragraph (a) of subsection (2) of section 1263
718.608, Florida Statutes, is amended to read: 1264
718.608 Notice of intended conversion; time of delivery; 1265
content.— 1266
(2)(a) Each notice of intended conversion shall be dated 1267
and in writing. The notice shall contain the following 1268
statement, with the phrases of the following statement which 1269
appear in upper case printed in conspicuous type: 1270
These apartments are being converted to condominium b y 1271
...(name of developer)..., the developer. 1272
1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF 1273
YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL 1274
AGREEMENT AS FOLLOWS: 1275
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a. If you have continuously been a resident of these 1276
apartments during the last 180 days and your rental agreement 1277
expires during the next 270 days, you may extend your rental 1278
agreement for up to 270 days after the date of this notice. 1279
b. If you have not been a continuous resident of these 1280
apartments for the last 180 days a nd your rental agreement 1281
expires during the next 180 days, you may extend your rental 1282
agreement for up to 180 days after the date of this notice. 1283
c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU 1284
MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DA YS AFTER THE 1285
DATE OF THIS NOTICE. 1286
2. IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS, 1287
you may extend your rental agreement for up to 45 days after the 1288
date of this notice while you decide whether to extend your 1289
rental agreement as explained above. T o do so, you must notify 1290
the developer in writing. You will then have the full 45 days to 1291
decide whether to extend your rental agreement as explained 1292
above. 1293
3. During the extension of your rental agreement you will 1294
be charged the same rent that you are n ow paying. 1295
4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION 1296
OF THE RENTAL AGREEMENT AS FOLLOWS: 1297
a. If your rental agreement began or was extended or 1298
renewed after May 1, 1980, and your rental agreement, including 1299
extensions and renewals, has a n unexpired term of 180 days or 1300
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less, you may cancel your rental agreement upon 30 days' written 1301
notice and move. Also, upon 30 days' written notice, you may 1302
cancel any extension of the rental agreement. 1303
b. If your rental agreement was not begun or was n ot 1304
extended or renewed after May 1, 1980, you may not cancel the 1305
rental agreement without the consent of the developer. If your 1306
rental agreement, including extensions and renewals, has an 1307
unexpired term of 180 days or less, you may, however, upon 30 1308
days' written notice cancel any extension of the rental 1309
agreement. 1310
5. All notices must be given in writing and sent by mail, 1311
return receipt requested, or delivered in person to the 1312
developer at this address: ...(name and address of 1313
developer).... 1314
6. If you have continuously been a resident of these 1315
apartments during the last 180 days: 1316
a. You have the right to purchase your apartment and will 1317
have 45 days to decide whether to purchase. If you do not buy 1318
the unit at that price and the unit is later offered at a lower 1319
price, you will have the opportunity to buy the unit at the 1320
lower price. However, in all events your right to purchase the 1321
unit ends when the rental agreement or any extension of the 1322
rental agreement ends or when you waive this right in writing. 1323
b. Within 90 days you will be provided purchase 1324
information relating to your apartment, including the price of 1325
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your unit and the condition of the building. If you do not 1326
receive this information within 90 days, your rental agreement 1327
and any extension will be extended 1 day for each day over 90 1328
days until you are given the purchase information. If you do not 1329
want this rental agreement extension, you must notify the 1330
developer in writing. 1331
7. If you have any questions regarding this conversion or 1332
the Condominium Act, you may contact the developer or the state 1333
agency which regulates condominiums: The Division of Florida 1334
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes, 1335
...(Tallahassee address and telephone number of division).... 1336
Section 22. Subsection (17) of section 719.103, Florida 1337
Statutes, is amended to read: 1338
719.103 Definitions. —As used in this chapter: 1339
(17) "Division" means the Division of Florida 1340
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes of the 1341
Department of Business and Professional Regulation. 1342
Section 23. Section 719.1255, Florida Statutes, is amended 1343
to read: 1344
719.1255 Alternative resolution of disputes. —The Division 1345
of Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 1346
Homes of the Department of Business and Professional Regulation 1347
shall provide for alternative dispute resolution in accordance 1348
with s. 718.1255. 1349
Section 24. Paragraph (d) of subsection (1) and paragraph 1350
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(b) of subsection (2) of section 719.501, Florida Statutes, are 1351
amended to read: 1352
719.501 Powers and duties of Division of Florida 1353
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes.— 1354
(1) The Division of Florida Condominiums, Timeshares, 1355
Yacht Brokers, and Mobile Homes of the Department of Business 1356
and Professional Regulation, r eferred to as the "division" in 1357
this part, in addition to other powers and duties prescribed by 1358
chapter 718, has the power to enforce and ensure compliance with 1359
this chapter and adopted rules relating to the development, 1360
construction, sale, lease, ownershi p, operation, and management 1361
of residential cooperative units; complaints related to the 1362
procedural completion of the structural integrity reserve 1363
studies under s. 719.106(1)(k); and complaints related to the 1364
procedural completion of milestone inspections under s. 553.899. 1365
In performing its duties, the division shall have the following 1366
powers and duties: 1367
(d) Notwithstanding any remedies available to unit owners 1368
and associations, if the division has reasonable cause to 1369
believe that a violation of any provi sion of this chapter or 1370
related rule has occurred, the division may institute 1371
enforcement proceedings in its own name against a developer, 1372
association, officer, or member of the board, or its assignees 1373
or agents, as follows: 1374
1. The division may permit a person whose conduct or 1375
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actions may be under investigation to waive formal proceedings 1376
and enter into a consent proceeding whereby orders, rules, or 1377
letters of censure or warning, whether formal or informal, may 1378
be entered against the person. 1379
2. The division may issue an order requiring the 1380
developer, association, officer, or member of the board, or its 1381
assignees or agents, to cease and desist from the unlawful 1382
practice and take such affirmative action as in the judgment of 1383
the division will carry out the purposes of this chapter. Such 1384
affirmative action may include, but is not limited to, an order 1385
requiring a developer to pay moneys determined to be owed to a 1386
condominium association. 1387
3. The division may bring an action in circuit court on 1388
behalf of a class of unit owners, lessees, or purchasers for 1389
declaratory relief, injunctive relief, or restitution. 1390
4. The division may impose a civil penalty against a 1391
developer or association, or its assignees or agents, for any 1392
violation of this chapter or related rule. The division may 1393
impose a civil penalty individually against any officer or board 1394
member who willfully and knowingly violates a provision of this 1395
chapter, a rule adopted pursuant to this chapter, or a final 1396
order of the division. The term "willfully and knowingly" means 1397
that the division informed the officer or board member that his 1398
or her action or intended action violates this chapter, a rule 1399
adopted under this chapter, or a final order of the division, 1400
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and that the officer or board member refused t o comply with the 1401
requirements of this chapter, a rule adopted under this chapter, 1402
or a final order of the division. The division, prior to 1403
initiating formal agency action under chapter 120, shall afford 1404
the officer or board member an opportunity to volunt arily comply 1405
with this chapter, a rule adopted under this chapter, or a final 1406
order of the division. An officer or board member who complies 1407
within 10 days is not subject to a civil penalty. A penalty may 1408
be imposed on the basis of each day of continuing v iolation, but 1409
in no event shall the penalty for any offense exceed $5,000. By 1410
January 1, 1998, the division shall adopt, by rule, penalty 1411
guidelines applicable to possible violations or to categories of 1412
violations of this chapter or rules adopted by the di vision. The 1413
guidelines must specify a meaningful range of civil penalties 1414
for each such violation of the statute and rules and must be 1415
based upon the harm caused by the violation, upon the repetition 1416
of the violation, and upon such other factors deemed rel evant by 1417
the division. For example, the division may consider whether the 1418
violations were committed by a developer or owner -controlled 1419
association, the size of the association, and other factors. The 1420
guidelines must designate the possible mitigating or agg ravating 1421
circumstances that justify a departure from the range of 1422
penalties provided by the rules. It is the legislative intent 1423
that minor violations be distinguished from those which endanger 1424
the health, safety, or welfare of the cooperative residents or 1425
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other persons and that such guidelines provide reasonable and 1426
meaningful notice to the public of likely penalties that may be 1427
imposed for proscribed conduct. This subsection does not limit 1428
the ability of the division to informally dispose of 1429
administrative actions or complaints by stipulation, agreed 1430
settlement, or consent order. All amounts collected shall be 1431
deposited with the Chief Financial Officer to the credit of the 1432
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 1433
Mobile Homes Trust F und. If a developer fails to pay the civil 1434
penalty, the division shall thereupon issue an order directing 1435
that such developer cease and desist from further operation 1436
until such time as the civil penalty is paid or may pursue 1437
enforcement of the penalty in a court of competent jurisdiction. 1438
If an association fails to pay the civil penalty, the division 1439
shall thereupon pursue enforcement in a court of competent 1440
jurisdiction, and the order imposing the civil penalty or the 1441
cease and desist order shall not becom e effective until 20 days 1442
after the date of such order. Any action commenced by the 1443
division shall be brought in the county in which the division 1444
has its executive offices or in the county where the violation 1445
occurred. 1446
(2) 1447
(b) All fees shall be deposite d in the Division of Florida 1448
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 1449
Fund as provided by law. 1450
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Section 25. Paragraph (a) of subsection (2) of section 1451
719.502, Florida Statutes, is amended to read: 1452
719.502 Filing prior to sale o r lease.— 1453
(2)(a) Prior to filing as required by subsection (1), and 1454
prior to acquiring an ownership, leasehold, or contractual 1455
interest in the land upon which the cooperative is to be 1456
developed, a developer shall not offer a contract for purchase 1457
or lease of a unit for more than 5 years. However, the developer 1458
may accept deposits for reservations upon the approval of a 1459
fully executed escrow agreement and reservation agreement form 1460
properly filed with the Division of Florida Condominiums, 1461
Timeshares, Yacht Brokers, and Mobile Homes. Each filing of a 1462
proposed reservation program shall be accompanied by a filing 1463
fee of $250. Reservations shall not be taken on a proposed 1464
cooperative unless the developer has an ownership, leasehold, or 1465
contractual interest in t he land upon which the cooperative is 1466
to be developed. The division shall notify the developer within 1467
20 days of receipt of the reservation filing of any deficiencies 1468
contained therein. Such notification shall not preclude the 1469
determination of reservation filing deficiencies at a later 1470
date, nor shall it relieve the developer of any responsibility 1471
under the law. The escrow agreement and the reservation 1472
agreement form shall include a statement of the right of the 1473
prospective purchaser to an immediate unquali fied refund of the 1474
reservation deposit moneys upon written request to the escrow 1475
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agent by the prospective purchaser or the developer. 1476
Section 26. Section 719.504, Florida Statutes, is amended 1477
to read: 1478
719.504 Prospectus or offering circular. —Every developer 1479
of a residential cooperative which contains more than 20 1480
residential units, or which is part of a group of residential 1481
cooperatives which will be served by property to be used in 1482
common by unit owners of more than 20 residential units, shall 1483
prepare a prospectus or offering circular and file it with the 1484
Division of Florida Condominiums, Timeshares, Yacht Brokers, and 1485
Mobile Homes prior to entering into an enforceable contract of 1486
purchase and sale of any unit or lease of a unit for more than 5 1487
years and shall furnish a copy of the prospectus or offering 1488
circular to each buyer. In addition to the prospectus or 1489
offering circular, each buyer shall be furnished a separate page 1490
entitled "Frequently Asked Questions and Answers," which must be 1491
in accordance with a format approved by the division. This page 1492
must, in readable language: inform prospective purchasers 1493
regarding their voting rights and unit use restrictions, 1494
including restrictions on the leasing of a unit; indicate 1495
whether and in what amount the un it owners or the association is 1496
obligated to pay rent or land use fees for recreational or other 1497
commonly used facilities; contain a statement identifying that 1498
amount of assessment which, pursuant to the budget, would be 1499
levied upon each unit type, exclusi ve of any special 1500
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assessments, and which identifies the basis upon which 1501
assessments are levied, whether monthly, quarterly, or 1502
otherwise; state and identify any court cases in which the 1503
association is currently a party of record in which the 1504
association may face liability in excess of $100,000; and state 1505
whether membership in a recreational facilities association is 1506
mandatory and, if so, identify the fees currently charged per 1507
unit type. The division shall by rule require such other 1508
disclosure as in its ju dgment will assist prospective 1509
purchasers. The prospectus or offering circular may include more 1510
than one cooperative, although not all such units are being 1511
offered for sale as of the date of the prospectus or offering 1512
circular. The prospectus or offering c ircular must contain the 1513
following information: 1514
(1) The front cover or the first page must contain only: 1515
(a) The name of the cooperative. 1516
(b) The following statements in conspicuous type: 1517
1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT 1518
MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT. 1519
2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN 1520
NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES, 1521
ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES 1522
MATERIALS. 1523
3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY 1524
STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS 1525
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PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT 1526
REPRESENTATIONS. 1527
(2) Summary: The next page must contain all statements 1528
required to be in conspicuous type in the prospectus or offering 1529
circular. 1530
(3) A separate index of the contents and exhibits of the 1531
prospectus. 1532
(4) Beginning on the first page of the text (not including 1533
the summary and index), a description of the cooperative, 1534
including, but not limited to, the following information: 1535
(a) Its name and location. 1536
(b) A description of the cooperative property, including, 1537
without limitation: 1538
1. The number of buildings, the number of units in each 1539
building, the number of bathrooms an d bedrooms in each unit, and 1540
the total number of units, if the cooperative is not a phase 1541
cooperative; or, if the cooperative is a phase cooperative, the 1542
maximum number of buildings that may be contained within the 1543
cooperative, the minimum and maximum numb er of units in each 1544
building, the minimum and maximum number of bathrooms and 1545
bedrooms that may be contained in each unit, and the maximum 1546
number of units that may be contained within the cooperative. 1547
2. The page in the cooperative documents where a copy of 1548
the survey and plot plan of the cooperative is located. 1549
3. The estimated latest date of completion of 1550
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constructing, finishing, and equipping. In lieu of a date, a 1551
statement that the estimated date of completion of the 1552
cooperative is in the purchase a greement and a reference to the 1553
article or paragraph containing that information. 1554
(c) The maximum number of units that will use facilities 1555
in common with the cooperative. If the maximum number of units 1556
will vary, a description of the basis for variation and the 1557
minimum amount of dollars per unit to be spent for additional 1558
recreational facilities or enlargement of such facilities. If 1559
the addition or enlargement of facilities will result in a 1560
material increase of a unit owner's maintenance expense or 1561
rental expense, if any, the maximum increase and limitations 1562
thereon shall be stated. 1563
(5)(a) A statement in conspicuous type describing whether 1564
the cooperative is created and being sold as fee simple 1565
interests or as leasehold interests. If the cooperative is 1566
created or being sold on a leasehold, the location of the lease 1567
in the disclosure materials shall be stated. 1568
(b) If timeshare estates are or may be created with 1569
respect to any unit in the cooperative, a statement in 1570
conspicuous type stating that timeshare estates are created and 1571
being sold in such specified units in the cooperative. 1572
(6) A description of the recreational and other common 1573
areas that will be used only by unit owners of the cooperative, 1574
including, but not limited to, the following: 1575
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(a) Each room and its intended purposes, location, 1576
approximate floor area, and capacity in numbers of people. 1577
(b) Each swimming pool, as to its general location, 1578
approximate size and depths, approximate deck size and capacity, 1579
and whether heated. 1580
(c) Additional facilities, as to the number of each 1581
facility, its approximate location, approximate size, and 1582
approximate capacity. 1583
(d) A general description of the items of personal 1584
property and the approximate number of each item of personal 1585
property that the deve loper is committing to furnish for each 1586
room or other facility or, in the alternative, a representation 1587
as to the minimum amount of expenditure that will be made to 1588
purchase the personal property for the facility. 1589
(e) The estimated date when each room or other facility 1590
will be available for use by the unit owners. 1591
(f)1. An identification of each room or other facility to 1592
be used by unit owners that will not be owned by the unit owners 1593
or the association; 1594
2. A reference to the location in the disclosur e materials 1595
of the lease or other agreements providing for the use of those 1596
facilities; and 1597
3. A description of the terms of the lease or other 1598
agreements, including the length of the term; the rent payable, 1599
directly or indirectly, by each unit owner, an d the total rent 1600
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payable to the lessor, stated in monthly and annual amounts for 1601
the entire term of the lease; and a description of any option to 1602
purchase the property leased under any such lease, including the 1603
time the option may be exercised, the purchas e price or how it 1604
is to be determined, the manner of payment, and whether the 1605
option may be exercised for a unit owner's share or only as to 1606
the entire leased property. 1607
(g) A statement as to whether the developer may provide 1608
additional facilities not des cribed above, their general 1609
locations and types, improvements or changes that may be made, 1610
the approximate dollar amount to be expended, and the maximum 1611
additional common expense or cost to the individual unit owners 1612
that may be charged during the first an nual period of operation 1613
of the modified or added facilities. 1614
1615
Descriptions as to locations, areas, capacities, numbers, 1616
volumes, or sizes may be stated as approximations or minimums. 1617
(7) A description of the recreational and other facilities 1618
that will be used in common with other cooperatives, community 1619
associations, or planned developments which require the payment 1620
of the maintenance and expenses of such facilities, directly or 1621
indirectly, by the unit owners. The description shall include, 1622
but not be limited to, the following: 1623
(a) Each building and facility committed to be built. 1624
(b) Facilities not committed to be built except under 1625
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certain conditions, and a statement of those conditions or 1626
contingencies. 1627
(c) As to each facility committed to be bui lt, or which 1628
will be committed to be built upon the happening of one of the 1629
conditions in paragraph (b), a statement of whether it will be 1630
owned by the unit owners having the use thereof or by an 1631
association or other entity which will be controlled by them , or 1632
others, and the location in the exhibits of the lease or other 1633
document providing for use of those facilities. 1634
(d) The year in which each facility will be available for 1635
use by the unit owners or, in the alternative, the maximum 1636
number of unit owners in the project at the time each of all of 1637
the facilities is committed to be completed. 1638
(e) A general description of the items of personal 1639
property, and the approximate number of each item of personal 1640
property, that the developer is committing to furnish for each 1641
room or other facility or, in the alternative, a representation 1642
as to the minimum amount of expenditure that will be made to 1643
purchase the personal property for the facility. 1644
(f) If there are leases, a description thereof, including 1645
the length of the term, the rent payable, and a description of 1646
any option to purchase. 1647
1648
Descriptions shall include location, areas, capacities, numbers, 1649
volumes, or sizes and may be stated as approximations or 1650
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minimums. 1651
(8) Recreation lease or associated club membe rship: 1652
(a) If any recreational facilities or other common areas 1653
offered by the developer and available to, or to be used by, 1654
unit owners are to be leased or have club membership associated, 1655
the following statement in conspicuous type shall be included: 1656
THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS 1657
COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS 1658
COOPERATIVE. There shall be a reference to the location in the 1659
disclosure materials where the recreation lease or club 1660
membership is described in detail. 1661
(b) If it is mandatory that unit owners pay a fee, rent, 1662
dues, or other charges under a recreational facilities lease or 1663
club membership for the use of facilities, there shall be in 1664
conspicuous type the applicable statement: 1665
1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS 1666
MANDATORY FOR UNIT OWNERS; or 1667
2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP, 1668
TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or 1669
3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE 1670
COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, 1671
REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES 1672
LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or 1673
4. A similar statement of the nature of the organization 1674
or manner in which t he use rights are created, and that unit 1675
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owners are required to pay. 1676
1677
Immediately following the applicable statement, the location in 1678
the disclosure materials where the development is described in 1679
detail shall be stated. 1680
(c) If the developer, or any othe r person other than the 1681
unit owners and other persons having use rights in the 1682
facilities, reserves, or is entitled to receive, any rent, fee, 1683
or other payment for the use of the facilities, then there shall 1684
be the following statement in conspicuous type: THE UNIT OWNERS 1685
OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR 1686
RECREATIONAL OR OTHER COMMON AREAS. Immediately following this 1687
statement, the location in the disclosure materials where the 1688
rent or land use fees are described in detail shall be sta ted. 1689
(d) If, in any recreation format, whether leasehold, club, 1690
or other, any person other than the association has the right to 1691
a lien on the units to secure the payment of assessments, rent, 1692
or other exactions, there shall appear a statement in 1693
conspicuous type in substantially the following form: 1694
1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 1695
SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE 1696
RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE 1697
PAYMENTS MAY RESULT IN FORECLOSURE OF T HE LIEN; or 1698
2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 1699
SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE 1700
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FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL 1701
OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THE SE 1702
PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN. 1703
1704
Immediately following the applicable statement, the location in 1705
the disclosure materials where the lien or lien right is 1706
described in detail shall be stated. 1707
(9) If the developer or any other person has the right to 1708
increase or add to the recreational facilities at any time after 1709
the establishment of the cooperative whose unit owners have use 1710
rights therein, without the consent of the unit owners or 1711
associations being required, there shall appear a state ment in 1712
conspicuous type in substantially the following form: 1713
RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT 1714
OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this 1715
statement, the location in the disclosure materials where such 1716
reserved rights are described shall be stated. 1717
(10) A statement of whether the developer's plan includes 1718
a program of leasing units rather than selling them, or leasing 1719
units and selling them subject to such leases. If so, there 1720
shall be a description of the plan, including the number and 1721
identification of the units and the provisions and term of the 1722
proposed leases, and a statement in boldfaced type that: THE 1723
UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE. 1724
(11) The arrangements for management of the associ ation 1725
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and maintenance and operation of the cooperative property and of 1726
other property that will serve the unit owners of the 1727
cooperative property, and a description of the management 1728
contract and all other contracts for these purposes having a 1729
term in excess of 1 year, including the following: 1730
(a) The names of contracting parties. 1731
(b) The term of the contract. 1732
(c) The nature of the services included. 1733
(d) The compensation, stated on a monthly and annual 1734
basis, and provisions for increases in the comp ensation. 1735
(e) A reference to the volumes and pages of the 1736
cooperative documents and of the exhibits containing copies of 1737
such contracts. 1738
1739
Copies of all described contracts shall be attached as exhibits. 1740
If there is a contract for the management of the co operative 1741
property, then a statement in conspicuous type in substantially 1742
the following form shall appear, identifying the proposed or 1743
existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR 1744
THE MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF TH E 1745
CONTRACT MANAGER). Immediately following this statement, the 1746
location in the disclosure materials of the contract for 1747
management of the cooperative property shall be stated. 1748
(12) If the developer or any other person or persons other 1749
than the unit owners has the right to retain control of the 1750
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board of administration of the association for a period of time 1751
which can exceed 1 year after the closing of the sale of a 1752
majority of the units in that cooperative to persons other than 1753
successors or alternate deve lopers, then a statement in 1754
conspicuous type in substantially the following form shall be 1755
included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO 1756
RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS 1757
HAVE BEEN SOLD. Immediately following this statement, the 1758
location in the disclosure materials where this right to control 1759
is described in detail shall be stated. 1760
(13) If there are any restrictions upon the sale, 1761
transfer, conveyance, or leasing of a unit, then a statement in 1762
conspicuous type in substantially the following form shall be 1763
included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR 1764
CONTROLLED. Immediately following this statement, the location 1765
in the disclosure materials where the restriction, limitation, 1766
or control on the sale, lease, or transfer of units is described 1767
in detail shall be stated. 1768
(14) If the cooperative is part of a phase project, the 1769
following shall be stated: 1770
(a) A statement in conspicuous type in substantially the 1771
following form shall be included: THIS IS A PHASE COOPERATIVE. 1772
ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE. 1773
Immediately following this statement, the location in the 1774
disclosure materials where the phasing is described shall be 1775
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stated. 1776
(b) A summary of the provisions of the declarat ion 1777
providing for the phasing. 1778
(c) A statement as to whether or not residential buildings 1779
and units which are added to the cooperative may be 1780
substantially different from the residential buildings and units 1781
originally in the cooperative, and, if the adde d residential 1782
buildings and units may be substantially different, there shall 1783
be a general description of the extent to which such added 1784
residential buildings and units may differ, and a statement in 1785
conspicuous type in substantially the following form sha ll be 1786
included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE 1787
MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND 1788
UNITS IN THE COOPERATIVE. Immediately following this statement, 1789
the location in the disclosure materials where the extent to 1790
which added residential buildings and units may substantially 1791
differ is described shall be stated. 1792
(d) A statement of the maximum number of buildings 1793
containing units, the maximum and minimum number of units in 1794
each building, the maximum number of units, and the minimum and 1795
maximum square footage of the units that may be contained within 1796
each parcel of land which may be added to the cooperative. 1797
(15) If the cooperative is created by conversion of 1798
existing improvements, the following information shall be 1799
stated: 1800
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(a) The information required by s. 719.616. 1801
(b) A caveat that there are no express warranties unless 1802
they are stated in writing by the developer. 1803
(16) A summary of the restrictions, if any, to be imposed 1804
on units concerning the use of any of the cooperative property, 1805
including statements as to whether there are restrictions upon 1806
children and pets, and reference to the volumes and pages of the 1807
cooperative documents where such restrictions are found, or if 1808
such restrictions are contained elsewh ere, then a copy of the 1809
documents containing the restrictions shall be attached as an 1810
exhibit. 1811
(17) If there is any land that is offered by the developer 1812
for use by the unit owners and that is neither owned by them nor 1813
leased to them, the association, or any entity controlled by 1814
unit owners and other persons having the use rights to such 1815
land, a statement shall be made as to how such land will serve 1816
the cooperative. If any part of such land will serve the 1817
cooperative, the statement shall describe the land and the 1818
nature and term of service, and the cooperative documents or 1819
other instrument creating such servitude shall be included as an 1820
exhibit. 1821
(18) The manner in which utility and other services, 1822
including, but not limited to, sewage and waste disposal, water 1823
supply, and storm drainage, will be provided and the person or 1824
entity furnishing them. 1825
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(19) An explanation of the manner in which the 1826
apportionment of common expenses and ownership of the common 1827
areas have been determined. 1828
(20) An estimated oper ating budget for the cooperative and 1829
the association, and a schedule of the unit owner's expenses 1830
shall be attached as an exhibit and shall contain the following 1831
information: 1832
(a) The estimated monthly and annual expenses of the 1833
cooperative and the associ ation that are collected from unit 1834
owners by assessments. 1835
(b) The estimated monthly and annual expenses of each unit 1836
owner for a unit, other than assessments payable to the 1837
association, payable by the unit owner to persons or entities 1838
other than the association, and the total estimated monthly and 1839
annual expense. There may be excluded from this estimate 1840
expenses that are personal to unit owners, which are not 1841
uniformly incurred by all unit owners, or which are not provided 1842
for or contemplated by the coope rative documents, including, but 1843
not limited to, the costs of private telephone; maintenance of 1844
the interior of cooperative units, which is not the obligation 1845
of the association; maid or janitorial services privately 1846
contracted for by the unit owners; util ity bills billed directly 1847
to each unit owner for utility services to his or her unit; 1848
insurance premiums other than those incurred for policies 1849
obtained by the cooperative; and similar personal expenses of 1850
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the unit owner. A unit owner's estimated payments for 1851
assessments shall also be stated in the estimated amounts for 1852
the times when they will be due. 1853
(c) The estimated items of expenses of the cooperative and 1854
the association, except as excluded under paragraph (b), 1855
including, but not limited to, the foll owing items, which shall 1856
be stated as an association expense collectible by assessments 1857
or as unit owners' expenses payable to persons other than the 1858
association: 1859
1. Expenses for the association and cooperative: 1860
a. Administration of the association. 1861
b. Management fees. 1862
c. Maintenance. 1863
d. Rent for recreational and other commonly used areas. 1864
e. Taxes upon association property. 1865
f. Taxes upon leased areas. 1866
g. Insurance. 1867
h. Security provisions. 1868
i. Other expenses. 1869
j. Operating capital. 1870
k. Reserves. 1871
l. Fee payable to the division. 1872
2. Expenses for a unit owner: 1873
a. Rent for the unit, if subject to a lease. 1874
b. Rent payable by the unit owner directly to the lessor 1875
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or agent under any recreational lease or lease for the use of 1876
commonly used areas, which use and payment are a mandatory 1877
condition of ownership and are not included in the common 1878
expense or assessments for common maintenance paid by the unit 1879
owners to the association. 1880
(d) The following statement in conspicuous type: THE 1881
BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN 1882
ACCORDANCE WITH THE COOPERATIVE ACT AND IS A GOOD FAITH ESTIMATE 1883
ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON 1884
FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION. 1885
ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH 1886
CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN 1887
THE OFFERING. 1888
(e) Each budget for an association prepared by a developer 1889
consistent with this subsection shall be prepared in go od faith 1890
and shall reflect accurate estimated amounts for the required 1891
items in paragraph (c) at the time of the filing of the offering 1892
circular with the division, and subsequent increased amounts of 1893
any item included in the association's estimated budget that are 1894
beyond the control of the developer shall not be considered an 1895
amendment that would give rise to rescission rights set forth in 1896
s. 719.503(1)(a) or (b), nor shall such increases modify, void, 1897
or otherwise affect any guarantee of the developer cont ained in 1898
the offering circular or any purchase contract. It is the intent 1899
of this paragraph to clarify existing law. 1900
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(f) The estimated amounts shall be stated for a period of 1901
at least 12 months and may distinguish between the period prior 1902
to the time unit owners other than the developer elect a 1903
majority of the board of administration and the period after 1904
that date. 1905
(21) A schedule of estimated closing expenses to be paid 1906
by a buyer or lessee of a unit and a statement of whether title 1907
opinion or title insurance policy is available to the buyer and, 1908
if so, at whose expense. 1909
(22) The identity of the developer and the chief operating 1910
officer or principal directing the creation and sale of the 1911
cooperative and a statement of its and his or her experience in 1912
this field. 1913
(23) Copies of the following, to the extent they are 1914
applicable, shall be included as exhibits: 1915
(a) The cooperative documents, or the proposed cooperative 1916
documents if the documents have not been recorded. 1917
(b) The articles of incorporatio n creating the 1918
association. 1919
(c) The bylaws of the association. 1920
(d) The ground lease or other underlying lease of the 1921
cooperative. 1922
(e) The management agreement and all maintenance and other 1923
contracts for management of the association and operation of the 1924
cooperative and facilities used by the unit owners having a 1925
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service term in excess of 1 year. 1926
(f) The estimated operating budget for the cooperative and 1927
the required schedule of unit owners' expenses. 1928
(g) A copy of the floor plan of the unit and th e plot plan 1929
showing the location of the residential buildings and the 1930
recreation and other common areas. 1931
(h) The lease of recreational and other facilities that 1932
will be used only by unit owners of the subject cooperative. 1933
(i) The lease of facilities us ed by owners and others. 1934
(j) The form of unit lease, if the offer is of a 1935
leasehold. 1936
(k) A declaration of servitude of properties serving the 1937
cooperative but not owned by unit owners or leased to them or 1938
the association. 1939
(l) The statement of conditio n of the existing building or 1940
buildings, if the offering is of units in an operation being 1941
converted to cooperative ownership. 1942
(m) The statement of inspection for termite damage and 1943
treatment of the existing improvements, if the cooperative is a 1944
conversion. 1945
(n) The form of agreement for sale or lease of units. 1946
(o) A copy of the agreement for escrow of payments made to 1947
the developer prior to closing. 1948
(p) A copy of the documents containing any restrictions on 1949
use of the property required by subsection (16). 1950
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(q) A copy of the inspector -prepared summary of the 1951
milestone inspection report as described in ss. 553.899 and 1952
719.301(4)(p), if applicable. 1953
(r) The association's most recent structural integrity 1954
reserve study or a statement that the associatio n has not 1955
completed a structural integrity reserve study. 1956
(24) Any prospectus or offering circular complying with 1957
the provisions of former ss. 711.69 and 711.802 may continue to 1958
be used without amendment, or may be amended to comply with this 1959
chapter. 1960
(25) A brief narrative description of the location and 1961
effect of all existing and intended easements located or to be 1962
located on the cooperative property other than those in the 1963
declaration. 1964
(26) If the developer is required by state or local 1965
authorities to obtain acceptance or approval of any dock or 1966
marina facility intended to serve the cooperative, a copy of 1967
such acceptance or approval acquired by the time of filing with 1968
the division pursuant to s. 719.502 or a statement that such 1969
acceptance has not b een acquired or received. 1970
(27) Evidence demonstrating that the developer has an 1971
ownership, leasehold, or contractual interest in the land upon 1972
which the cooperative is to be developed. 1973
Section 27. Section 719.508, Florida Statutes, is amended 1974
to read: 1975
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719.508 Regulation by Division of Hotels and Restaurants. —1976
In addition to the authority, regulation, or control exercised 1977
by the Division of Florida Condominiums, Timeshares, Yacht 1978
Brokers, and Mobile Homes pursuant to this act with respect to 1979
cooperatives, buildings included in a cooperative property shall 1980
be subject to the authority, regulation, or control of the 1981
Division of Hotels and Restaurants of the Department of Business 1982
and Professional Regulation, to the extent provided in chapters 1983
399 and 509. 1984
Section 28. Paragraph (a) of subsection (2) of section 1985
719.608, Florida Statutes, is amended to read: 1986
719.608 Notice of intended conversion; time of delivery; 1987
content.— 1988
(2)(a) Each notice of intended conversion shall be dated 1989
and in writing. The n otice shall contain the following 1990
statement, with the phrases of the following statement which 1991
appear in upper case printed in conspicuous type: 1992
These apartments are being converted to cooperative by 1993
...(name of developer)..., the developer. 1994
1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF 1995
YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL 1996
AGREEMENT AS FOLLOWS: 1997
a. If you have continuously been a resident of these 1998
apartments during the last 180 days and your rental agreement 1999
expires during the next 270 days, you may extend your rental 2000
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agreement for up to 270 days after the date of this notice. 2001
b. If you have not been a continuous resident of these 2002
apartments for the last 180 days and your rental agreement 2003
expires during the next 180 days , you may extend your rental 2004
agreement for up to 180 days after the date of this notice. 2005
c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU 2006
MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE 2007
DATE OF THIS NOTICE. 2008
2. IF YOUR RENTAL AGR EEMENT EXPIRES IN THE NEXT 45 DAYS, 2009
you may extend your rental agreement for up to 45 days after the 2010
date of this notice while you decide whether to extend your 2011
rental agreement as explained above. To do so, you must notify 2012
the developer in writing. You wi ll then have the full 45 days to 2013
decide whether to extend your rental agreement as explained 2014
above. 2015
3. During the extension of your rental agreement you will 2016
be charged the same rent that you are now paying. 2017
4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION 2018
OF THE RENTAL AGREEMENT AS FOLLOWS: 2019
a. If your rental agreement began or was extended or 2020
renewed after May 1, 1980, and your rental agreement, including 2021
extensions and renewals, has an unexpired term of 180 days or 2022
less, you may cancel your rental agreement upon 30 days' written 2023
notice and move. Also, upon 30 days' written notice, you may 2024
cancel any extension of the rental agreement. 2025
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b. If your rental agreement was not begun or was not 2026
extended or renewed after May 1, 1980, you may not can cel the 2027
rental agreement without the consent of the developer. If your 2028
rental agreement, including extensions and renewals, has an 2029
unexpired term of 180 days or less, you may, however, upon 30 2030
days' written notice cancel any extension of the rental 2031
agreement. 2032
5. All notices must be given in writing and sent by mail, 2033
return receipt requested, or delivered in person to the 2034
developer at this address: ...(name and address of 2035
developer).... 2036
6. If you have continuously been a resident of these 2037
apartments during the last 180 days: 2038
a. You have the right to purchase your apartment and will 2039
have 45 days to decide whether to purchase. If you do not buy 2040
the unit at that price and the unit is later offered at a lower 2041
price, you will have the opportunity to buy the unit at the 2042
lower price. However, in all events your right to purchase the 2043
unit ends when the rental agreement or any extension of the 2044
rental agreement ends or when you waive this right in writing. 2045
b. Within 90 days you will be provided purchase 2046
information relating to your apartment, including the price of 2047
your unit and the condition of the building. If you do not 2048
receive this information within 90 days, your rental agreement 2049
and any extension will be extended 1 day for each day over 90 2050
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days until you are given the purchase information. If you do not 2051
want this rental agreement extension, you must notify the 2052
developer in writing. 2053
7. If you have any questions regarding this conversion or 2054
the Cooperative Act, you may contact the developer or the state 2055
agency which regulates cooperatives: The Division of Florida 2056
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes, 2057
...(Tallahassee address and telephone number of division).... 2058
Section 29. Subsection (7) of section 720.301, Florida 2059
Statutes, is amended to read: 2060
720.301 Definitions. —As used in this chapter, the term: 2061
(7) "Division" means the Division of Florida Condominiums, 2062
Timeshares, Yacht Brokers, and Mobile Homes in the Department of 2063
Business and Professional Regulation. 2064
Section 30. Subsect ion (11) of section 721.05, Florida 2065
Statutes, is amended to read: 2066
721.05 Definitions. —As used in this chapter, the term: 2067
(11) "Division" means the Division of Florida 2068
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes of the 2069
Department of Business and Professional Regulation. 2070
Section 31. Paragraph (d) of subsection (2) of section 2071
721.07, Florida Statutes, is amended to read: 2072
721.07 Public offering statement. —Prior to offering any 2073
timeshare plan, the developer must submit a filed public 2074
offering statement to the division for approval as prescribed by 2075
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s. 721.03, s. 721.55, or this section. Until the division 2076
approves such filing, any contract regarding the sale of that 2077
timeshare plan is subject to cancellation by the purchaser 2078
pursuant to s. 721.10. 2079
(2) 2080
(d) A developer shall have the authority to deliver to 2081
purchasers any purchaser public offering statement that is not 2082
yet approved by the division, provided that the following shall 2083
apply: 2084
1. At the time the developer delivers an unapproved 2085
purchaser public offering statement to a purchaser pursuant to 2086
this paragraph, the developer shall deliver a fully completed 2087
and executed copy of the purchase contract required by s. 721.06 2088
that contains the following statement in conspicuous type in 2089
substantially the following form which shall replace the 2090
statements required by s. 721.06(1)(g): 2091
The developer is delivering to you a public o ffering statement 2092
that has been filed with but not yet approved by the Division of 2093
Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 2094
Homes. Any revisions to the unapproved public offering statement 2095
you have received must be delivered to you, but only if the 2096
revisions materially alter or modify the offering in a manner 2097
adverse to you. After the division approves the public offering 2098
statement, you will receive notice of the approval from the 2099
developer and the required revisions, if any. 2100
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Your statutory right to cancel this transaction without any 2101
penalty or obligation expires 10 calendar days after the date 2102
you signed your purchase contract or the date on which you 2103
receive the last of all documents required to be given to you 2104
pursuant to section 721.0 7(6), Florida Statutes, or 10 calendar 2105
days after you receive revisions required to be delivered to 2106
you, if any, whichever is later. If you decide to cancel this 2107
contract, you must notify the seller in writing of your intent 2108
to cancel. Your notice of cance llation shall be effective upon 2109
the date sent and shall be sent to ...(Name of Seller)... at 2110
...(Address of Seller).... Any attempt to obtain a waiver of 2111
your cancellation right is void and of no effect. While you may 2112
execute all closing documents in advan ce, the closing, as 2113
evidenced by delivery of the deed or other document, before 2114
expiration of your 10 -day cancellation period, is prohibited. 2115
2. After receipt of approval from the division and prior 2116
to closing, if any revisions made to the documents cont ained in 2117
the purchaser public offering statement materially alter or 2118
modify the offering in a manner adverse to a purchaser, the 2119
developer shall send the purchaser such revisions, together with 2120
a notice containing a statement in conspicuous type in 2121
substantially the following form: 2122
The unapproved public offering statement previously delivered to 2123
you, together with the enclosed revisions, has been approved by 2124
the Division of Florida Condominiums, Timeshares, Yacht Brokers, 2125
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and Mobile Homes. Accordingly, your cancellation right expires 2126
10 calendar days after you sign your purchase contract or 10 2127
calendar days after you receive these revisions, whichever is 2128
later. If you have any questions regarding your cancellation 2129
rights, you may contact the division at [ins ert division's 2130
current address]. 2131
3. After receipt of approval from the division and prior 2132
to closing, if no revisions have been made to the documents 2133
contained in the unapproved purchaser public offering statement, 2134
or if such revisions do not materially alter or modify the 2135
offering in a manner adverse to a purchaser, the developer shall 2136
send the purchaser a notice containing a statement in 2137
conspicuous type in substantially the following form: 2138
The unapproved public offering statement previously delivered t o 2139
you has been approved by the Division of Florida Condominiums, 2140
Timeshares, Yacht Brokers, and Mobile Homes. Revisions made to 2141
the unapproved public offering statement, if any, are not 2142
required to be delivered to you or are not deemed by the 2143
developer, in its opinion, to materially alter or modify the 2144
offering in a manner that is adverse to you. Accordingly, your 2145
cancellation right expired 10 days after you signed your 2146
purchase contract. A complete copy of the approved public 2147
offering statement is availabl e through the managing entity for 2148
inspection as part of the books and records of the plan. If you 2149
have any questions regarding your cancellation rights, you may 2150
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contact the division at [insert division's current address]. 2151
Section 32. Subsection (8) of section 721.08, Florida 2152
Statutes, is amended to read: 2153
721.08 Escrow accounts; nondisturbance instruments; 2154
alternate security arrangements; transfer of legal title. — 2155
(8) An escrow agent holding escrowed funds pursuant to 2156
this chapter that have not been claimed for a period of 5 years 2157
after the date of deposit shall make at least one reasonable 2158
attempt to deliver such unclaimed funds to the purchaser who 2159
submitted such funds to escrow. In making such attempt, an 2160
escrow agent is entitled to rely on a purch aser's last known 2161
address as set forth in the books and records of the escrow 2162
agent and is not required to conduct any further search for the 2163
purchaser. If an escrow agent's attempt to deliver unclaimed 2164
funds to any purchaser is unsuccessful, the escrow ag ent may 2165
deliver such unclaimed funds to the division and the division 2166
shall deposit such unclaimed funds in the Division of Florida 2167
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 2168
Fund, 30 days after giving notice in a publication of genera l 2169
circulation in the county in which the timeshare property 2170
containing the purchaser's timeshare interest is located. The 2171
purchaser may claim the same at any time prior to the delivery 2172
of such funds to the division. After delivery of such funds to 2173
the division, the purchaser shall have no more rights to the 2174
unclaimed funds. The escrow agent shall not be liable for any 2175
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claims from any party arising out of the escrow agent's delivery 2176
of the unclaimed funds to the division pursuant to this section. 2177
Section 33. Paragraph (e) of subsection (5) of section 2178
721.26, Florida Statutes, is amended to read: 2179
721.26 Regulation by division. —The division has the power 2180
to enforce and ensure compliance with this chapter, except for 2181
parts III and IV, using the powers prov ided in this chapter, as 2182
well as the powers prescribed in chapters 718 and 719. In 2183
performing its duties, the division shall have the following 2184
powers and duties: 2185
(5) Notwithstanding any remedies available to purchasers, 2186
if the division has reasonable ca use to believe that a violation 2187
of this chapter, or of any division rule adopted or order issued 2188
pursuant to this chapter, has occurred, the division may 2189
institute enforcement proceedings in its own name against any 2190
regulated party, as such term is defined in this subsection: 2191
(e)1. The division may impose a penalty against any 2192
regulated party for a violation of this chapter or any rule 2193
adopted thereunder. A penalty may be imposed on the basis of 2194
each day of continuing violation, but in no event may the 2195
penalty for any offense exceed $10,000. All accounts collected 2196
shall be deposited with the Chief Financial Officer to the 2197
credit of the Division of Florida Condominiums, Timeshares, 2198
Yacht Brokers, and Mobile Homes Trust Fund. 2199
2.a. If a regulated party fail s to pay a penalty, the 2200
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division shall thereupon issue an order directing that such 2201
regulated party cease and desist from further operation until 2202
such time as the penalty is paid; or the division may pursue 2203
enforcement of the penalty in a court of competen t jurisdiction. 2204
b. If an owners' association or managing entity fails to 2205
pay a civil penalty, the division may pursue enforcement in a 2206
court of competent jurisdiction. 2207
Section 34. Section 721.28, Florida Statutes, is amended 2208
to read: 2209
721.28 Division of Florida Condominiums, Timeshares, Yacht 2210
Brokers, and Mobile Homes Trust Fund. —All funds collected by the 2211
division and any amounts paid as fees or penalties under this 2212
chapter shall be deposited in the State Treasury to the credit 2213
of the Division of Fl orida Condominiums, Timeshares, Yacht 2214
Brokers, and Mobile Homes Trust Fund created by s. 718.509. 2215
Section 35. Paragraph (c) of subsection (1) of section 2216
721.301, Florida Statutes, is amended to read: 2217
721.301 Florida Timesharing, Vacation Club, and 2218
Hospitality Program.— 2219
(1) 2220
(c) The director may designate funds from the Division of 2221
Florida Condominiums, Timeshares, Yacht Brokers, and Mobile 2222
Homes Trust Fund, not to exceed $50,000 annually, to support the 2223
projects and proposals undertaken pursuant to paragraph (b). All 2224
state trust funds to be expended pursuant to this section must 2225
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be matched equally with private moneys and shall comprise no 2226
more than half of the total moneys expended annually. 2227
Section 36. Subsection (2) and paragraph (a) of subsect ion 2228
(7) of section 723.003, Florida Statutes, are amended to read: 2229
723.003 Definitions. —As used in this chapter, the term: 2230
(2) "Division" means the Division of Florida Condominiums, 2231
Timeshares, Yacht Brokers, and Mobile Homes of the Department of 2232
Business and Professional Regulation. 2233
(7)(a) "Mediation" means a process whereby a mediator 2234
appointed by the Division of Florida Condominiums, Timeshares, 2235
Yacht Brokers, and Mobile Homes, or mutually selected by the 2236
parties, acts to encourage and facilitate the resolution of a 2237
dispute. It is an informal and nonadversarial process with the 2238
objective of helping the disputing parties reach a mutually 2239
acceptable agreement. 2240
Section 37. Paragraph (e) of subsection (5) of section 2241
723.006, Florida Statutes, is amended to read: 2242
723.006 Powers and duties of division. —In performing its 2243
duties, the division has the following powers and duties: 2244
(5) Notwithstanding any remedies available to mobile home 2245
owners, mobile home park owners, and homeowners' associations, 2246
if the division has reasonable cause to believe that a violation 2247
of any provision of this chapter or related rule has occurred, 2248
the division may institute enforcement p roceedings in its own 2249
name against a developer, mobile home park owner, or homeowners' 2250
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association, or its assignee or agent, as follows: 2251
(e)1. The division may impose a civil penalty against a 2252
mobile home park owner or homeowners' association, or its 2253
assignee or agent, for any violation of this chapter, a properly 2254
adopted park rule or regulation, or a rule adopted pursuant 2255
hereto. A penalty may be imposed on the basis of each separate 2256
violation and, if the violation is a continuing one, for each 2257
day of continuing violation, but in no event may the penalty for 2258
each separate violation or for each day of continuing violation 2259
exceed $5,000. All amounts collected shall be deposited with the 2260
Chief Financial Officer to the credit of the Division of Florida 2261
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes Trust 2262
Fund. 2263
2. If a violator fails to pay the civil penalty, the 2264
division shall thereupon issue an order directing that such 2265
violator cease and desist from further violation until such time 2266
as the civil penalty is paid or may pursue enforcement of the 2267
penalty in a court of competent jurisdiction. If a homeowners' 2268
association fails to pay the civil penalty, the division shall 2269
thereupon pursue enforcement in a court of competent 2270
jurisdiction, and the orde r imposing the civil penalty or the 2271
cease and desist order shall not become effective until 20 days 2272
after the date of such order. Any action commenced by the 2273
division shall be brought in the county in which the division 2274
has its executive offices or in whic h the violation occurred. 2275
HB 83 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0083-00
Page 92 of 92
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 38. Section 723.009, Florida Statutes, is amended 2276
to read: 2277
723.009 Division of Florida Condominiums, Timeshares, 2278
Yacht Brokers, and Mobile Homes Trust Fund. —All proceeds from 2279
the fees, penalties, and fines imposed pu rsuant to this chapter 2280
shall be deposited into the Division of Florida Condominiums, 2281
Timeshares, Yacht Brokers, and Mobile Homes Trust Fund created 2282
by s. 718.509. Moneys in this fund, as appropriated by the 2283
Legislature pursuant to chapter 216, may be used to defray the 2284
expenses incurred by the division in administering the 2285
provisions of this chapter. 2286
Section 39. Paragraph (c) of subsection (2) of section 2287
723.0611, Florida Statutes, is amended to read: 2288
723.0611 Florida Mobile Home Relocation Corporatio n.— 2289
(2) 2290
(c) The corporation shall, for purposes of s. 768.28, be 2291
considered an agency of the state. Agents or employees of the 2292
corporation, members of the board of directors of the 2293
corporation, or representatives of the Division of Florida 2294
Condominiums, Timeshares, Yacht Brokers, and Mobile Homes shall 2295
be considered officers, employees, or agents of the state, and 2296
actions against them and the corporation shall be governed by s. 2297
768.28. 2298
Section 40. This act shall take effect July 1, 2023. 2299