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Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

SUPPOSE I TOLD YOU THAT ONE DAY YOU MAY NOT OWN YOUR CONDO OR CO-OP EVEN THOUGH YOU PAID IT OFF IN FULL.

SUPPOSE I TOLD YOU THAT ONE DAY YOU MAY NOT OWN YOUR CONDO OR CO-OP EVEN THOUGH YOU PAID IT OFF IN FULL.

  • Posted: Feb 01, 2021
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SUPPOSE I TOLD YOU THAT ONE DAY YOU MAY NOT OWN YOUR CONDO OR CO-OP EVEN THOUGH YOU PAID IT OFF IN FULL.

by Eric Glazer / Glazer & Sachs / Condo Craze & HOA’s

 

In about 25 years a crisis is coming to the condo and co-op world  that will be shocking to say the least.  Here is the problem.  Many of you think that by purchasing your condo or co-op, you can live there forever, as long as the mortgage, taxes and assessments are paid.  You may be wrong.  Very wrong.

Florida condo and co-op law basically say:  Leaseholds.—

(1) A condominium or co-op may be created on lands held under lease or may include recreational facilities or other common elements or commonly used facilities on a leasehold if, on the date the first unit is conveyed by the developer to a bona fide purchaser, the lease has an unexpired term of at least 50 years. 

 

That’s right your condo could be built on land that you don’t own.  Land that you are leasing and someone else owns and who is simply leasing the underlying land to the condo association for 99 years.  After the 99 years are over, the lease may require that all property built on the land (meaning all of the condo units) revert back to and becomes owned by the owner of the land.  In other words, after 99 years, you lose your home.

Many of these 99 year leases began in the 1960s.  So, in about 40 years, lots of buildings will be faced with this fiasco if they don’t do something about it before then.  As the date gets closer to the expiration of the 99 year lease term, the value of the unit keeps going down.  How can you sell a unit to someone if in 5 years it reverts back to the underlying land owner?  That unit is valueless.

It’s amazing how many people have no idea that this is going to happen.  How many people thought that once they paid off their mortgage, they were safe and secure.  They were wrong.  One day, the underlying land owner will be able to make you purchase the unit all over again if you want to stay.  Or, simply kick everyone out and build something new or sell to a new developer.

The law should never have allowed condos or co-ops to be built on leased land.  But, this is Florida – the land where developers call the shots.

If you live in a community with such a land lease, you want to see if you can buy it out and obtain a deed to the land.  That will avoid the potential disaster that awaits.  The Florida Legislature better start thinking about this coming crisis and not wait for it to creep up on everyone.

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ACTION ALERT: The insurance industry is backing another bill that is trying to take away your rights and significantly reduce your coverage for roof damage.

ACTION ALERT: The insurance industry is backing another bill that is trying to take away your rights and significantly reduce your coverage for roof damage.

  • Posted: Jan 30, 2021
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The insurance industry is backing another bill that is trying to take away your rights and significantly reduce your coverage for roof damage.

The insurance industry is backing another bill that is trying to take away your rights and significantly reduce your coverage for roof damage. If passed, Senate Bill 76 could potentially cost Floridian homeowners millions of dollars.

We need homeowners and business owners in Tallahassee on Tuesday, February 2nd to be heard and oppose this bill.

 

Here are some highlights of the bill:
  • Insurance companies can limit coverage for roofs more than 10 years old based on a “roof reimbursement schedule.” This could result in significant out of pocket expenses for homeowners.
  • The roof reimbursement schedule limits coverage to a percentage of the amount to repair or replace the roof.

Coverage can be limited to:

  • 70% for metal roofs
  • 40% for concrete tile and clay tile roofs
  • 40% for wood shake and wood shingle roofs
  • 25% for all other roof types, including asphalt shingle roofs

 

  • Timeframe to report property damage claims, including Hurricanes, is reduced to 2 years!
  • Policyholders must send their insurer a Notice of Intent to file a lawsuit prior suing for recovery of insurance proceeds.
  • Notice of Intent must include: the amount of damages sought, a detailed estimate for repairs, the actions of the insurer that gave rise to the action, and the amount of attorney’s fees incurred by the insured policyholder.
  • Notice of Intent must be served at least 60 days before filing a lawsuit. Given the 90 day period insurers already have to adjust claims, adding 60 days means generally waiting 5 months from the date the claim was reported before being able to sue for failure to adequately pay the claim.
  • Limits policyholders’ ability to recover attorney’s fees in a lawsuit against their insurer, a right that has been guaranteed under Florida law for decades.

 

  READ the BILL

Insurance companies are making more in profits than ever before (read about the CEO earning $27 million here: https://www.palmbeachpost.com/news/state–regional/rate-hike-greedy-insurance-ceo-paid-27m-times-citizens-chief/DBgq9ulJnA3GHE0Ap6e8oJ/?template=ampart). Their profits are your losses!
We need every roofing company to bring a homeowner to the Tallahassee Civic Center on Tuesday, February 2, 2021, to testify against bad legislation backed by insurance companies. Please call your representative and tell them you oppose Senate Bill 76 because it is bad for property owners, insurance consumers and contractors. This could affect your home and your livelihood!
Homeowners, do not let the insurance industry take away your rights with Senate Bill 76. Your voice counts! Call or email your representative today!

 


At Cohen Law Group, It’s About Justice!

It’s more than a slogan, it’s our firm’s mantra. We are zealous in protecting your rights. We offer 24-hour availability through our answering service. Call us today.

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Discriminatory Practices, Is Your Association Prepared?  by Rembaum’s Association Roundup

Discriminatory Practices, Is Your Association Prepared? by Rembaum’s Association Roundup

  • Posted: Jan 28, 2021
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Discriminatory Practices, Is Your Association Prepared?

by Rembaum’s Association Roundup  presented by: Kaye Bender Rembaum

On September 26, 2016, Rembaum’s Association Round Up published an extremely important article regarding a community association’s potential liability when allegations by one member accuse another member of a discriminatory practice. (Click HERE to view the 2016 article). On September 13, 2016, HUD made clear that a housing provider is responsible for discriminatory practices that may take place. In its Rules and Regulations set out in Chapter 24, Part 100 of the Code of Federal Regulations, effective which further interprets the Federal Fair Housing Act, HUD explained that it believes that, “we are long past the time when racial harassment is a tolerable price for integrated housing; a housing provider is responsible for maintaining its properties free from all discrimination prohibited by the Act.” Those regulations became effective on October 14, 2016.

In this author’s opinion, HUD went way too far by mandating that housing providers act as the investigator, police, judge and jury in cases of alleged discrimination. After all, there are countless Fair Housing offices in each state where complaints can be filed and are actively investigated, often times with only a bare inference. Community association board members are volunteers with no required special training other than to be “certified” within 90 days of taking office, which certification can be met by signing a one-page form acknowledging duties or taking a two-hour class. Neither the individual board members nor the community as a whole should have to bear liability for its board of directors not taking action in a neighbor to neighbor dispute. Afterall, the court room is the proper setting where such matters should be resolved.

In the January 25, 2021, edition of the Palm Beach Post reporter Mike Diamond Special to Palm Beach Post USA TODAY NETWORK, authored an article titled “Judge Won’t Dismiss HOA Religious Bias Suit.” In the article the judge was quoted as follows: ““the La-Grassos [the plaintiff’s] have plausibly alleged a claim against the association for its failure to respond to or seek to control Ms. Tannenholz’s allegedly discriminatory conduct.” Amongst other things, the allegation is that Tannenholz’s told La-Grassos, “you do not belong in a community that is 80% Jewish and that La-Grassos should “move the F… out and go to a white supremist community.”

But for HUD’s position that a housing provider can have liability for discriminatory practices of the residents it is unlikely the association would be a defendant in this lawsuit. By forcing housing providers, such as Florida’s countless condominium, homeowners’ and cooperative associations, to interject themselves into what should be private disputes amongst neighbors, HUD is providing the deepest of pockets to the plaintiff’s attorneys. At the end of the day, it is just another reason to sue the innocent community association to create liability where there should not be any in the first place.

 

Practical Tip no. 1: In light of this lurking danger, be sure to check in with your association’s insurance agent to be sure the association has proper liability coverage for accusations of discrimination.

Practical Tip no. 2: Also, given that there can even be personal liability in such actions, board members would be wise to speak to their own personal insurance agents too… Afterall you never know when that umbrella policy may come in handy. Remember this, too: if one board member has knowledge about an event, then such knowledge can be imputed to all board members as if they are all similarly aware. In other words, when one board member knows, then the association itself is on notice.

Practical Tip no. 3: Consider formally adopting a “no discrimination” type of rule. It could be as simple as “discrimination of any kind will not be tolerated”.

Practical Tip no. 4: If your association is made aware of an alleged discriminatory practice, then a written record of such allegation and the association’s efforts to remedy the situation should be made.

Be sure to discuss each and every alleged discriminatory practice brought to the attention of the board and/or its manager with the association’s attorney to obtain the proper guidance needed.

 


Jeffrey Rembaum, Esq.

Board Certified Specialist in Condominium and Planned Development Law and a community association lawyer with the law firm Kaye Bender Rembaum, in its Palm Beach Gardens office.

His law practice consists of representing condominium, homeowners, and cooperative associations, developers and unit owners throughout Florida.

He can be reached by email at JRembaum@KBRLegal.com or by calling 561-241-4462.

 

 

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The COVID-19 Vaccine & Your Community: How do you feel about your community becoming a point of distribution (POD)? by Becker

The COVID-19 Vaccine & Your Community: How do you feel about your community becoming a point of distribution (POD)? by Becker

  • Posted: Jan 28, 2021
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The COVID-19 Vaccine & Your Community: How do you feel about your community becoming a point of distribution (POD)?

by Becker Lawyers

Community leaders and residents have been tested by an unprecedented pandemic that created upheaval and strain worldwide.

Some communities suffered multiple infections and deaths, others struggled to strike the right balance between COVID-19 safety protocols and personal freedoms but all recognized that this public health crisis presented a novel challenge for both veteran board members and newcomers alike. With COVID-19 vaccines becoming available, many communities are considering whether or not to register to become a point of distribution (POD).

Please note that becoming a POD is subject to certain requirements and not every community will be eligible or able to meet the terms of the required agreements with vaccine providers.

Please take our 2-minute survey. For those communities who indicate a willingness to serve as a POD, and are a Becker client, your Becker attorney will assist your board in registering as a POD.

 

Please fill out the COVID-19 POD Servey

 

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Collections Tools for Self-Managed HOAs & Condos by Bob Gourley @Axela Technologies

Collections Tools for Self-Managed HOAs & Condos by Bob Gourley @Axela Technologies

  • Posted: Jan 28, 2021
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Collections Tools for Self-Managed HOAs & Condos

by Bob Gourley @Axela Technologies

 

When a condominium association or HOA makes the decision to self-manage, the Board of the association often must make difficult decisions about what to do themselves and what functions to outsource to third-party entities. What you need are the tools for collections for your self-managed condo or HOA.

Collecting common fees and assessments is the only way a self-managed association can fund itself and provide the goods and services to homeowners called for the association’s governance documents. Defaulting on these provisions is not an option. Ideally, all unit owners within the association remain solvent and pay their common fees and assessments on time. But what happens when they don’t? What tools are available to a self-managed condominium or HOA?

 

The High Cost of the Traditional Collection Method

Traditionally, collection of past-due common fees and assessments required hiring an attorney to represent the association in bringing forth a lien, and, if needed, a foreclosure action. While this approach can bring the association the title to a delinquent unit owner’s home, it isn’t always a profitable or even practical solution for the condominium or HOA.

Hiring an attorney creates additional risk in the form of legal fees that the association is bound to pay, regardless of the outcome of the legal actions. A well-intentioned association could very well spend more money than it could ever hope to receive in an attempt to collect past due monies they are owed and need to operate their associations.

 

New, Technology-Based Collections Tools for Self-Managed Associations

Axela Technologies decided to address the problem of common fee and assessment delinquency in a different and modern manner. As a full-fledged collection agency, Axela Technologies is able to offer true assistance to condominium associations and HOAs that find their budgets in jeopardy due to deficits created by delayed or delinquent common fees and assessments.

Charging no upfront money to the condominium association or HOA, Axela Technologies takes on the risk that would have been incurred by the expense of an attorney. The cost of using Axela Technologies is minimal and is passed on through the delinquent homeowner once the account is outsourced for collections.

This is an optimal situation for the association, and, to some extent, the delinquent homeowner, who is provided an opportunity to pay his common fees and assessments without having the onerous legal fees of an attorney added to his or her outstanding balance. The association minimizes risk and does not have to pay any fees to Axela Technologies. Additionally, Axela Technologies boasts a very high rate of successful collections, with only 5% remaining delinquent and requiring the use of an attorney to bring a foreclosure action against the delinquent homeowner.

Keep in mind that a foreclosure action still doesn’t guarantee a positive outcome for the self-managed condominium association or HOA. All the foreclosure action will do is gain title to the unit or home. It still needs to generate income, either through sale or rental, before the association may see some financial relief. While the attorney may assist in the foreclosure action, Axela Technologies will keep a vigilant eye on any surplus funds or other possible recovery for the condominium association or HOA. The goal is full recovery with minimal risk for the association.

 

Outsource Collections to Reduce Risk and Maximize Debt Recovery

Unless a self-managed condominium association or HOA is so well-funded that financial risk is of no concern to them, they would be well advised to outsource their collection efforts. Further, unless a self-managed condominium association or HOA wishes to risk spending money on legal fees, they would be well advised to outsource their collections to Axela Technologies. Axela Technologies’ history of successful condominium and HOA delinquency collection with no upfront cost or risk make them the easy choice.

The fact that their collection costs are far less than the legal fees charged by an attorney makes Axela’s collections tools a better choice, not just for the community, but also for the delinquent homeowner, giving them a much more likely chance to pay their delinquent fees and assessments to the association. Outsourcing collections to Axela Technologies is about minimizing risk and producing a successful outcome for all involved.

 

Learn more about Easy Collect, Axela’s collections solution for community associations here.

 


Need a Better Cash Flow for Your Condo or HOA?

YOUR COLLECTIONS PROCESS MAY BE WHAT’S HOLDING YOUR BUDGET BACK. LET US HELP WITH THIS FREE ANALYSIS.

A poor collections process can lead to a number of negative symptoms for a community association, from budget shortfalls to never-ending legal fees to loan denials for capital improvements. If your community is suffering, you may be looking in the wrong place for the right solution.

Axela Technologies specializes in community association collections. Our experts have years of CAM industry knowledge, combined with a deep understanding of collections processing.

Learn More!   In just 30 minutes, our experts will work with you to identify the areas in your current collections process that are not working, and give you actionable advice on how to improve your current process, increase the amount you are collecting, and save your community money.

Fill out the form to set up your free collections analysis now. Your analysis is completely free, and you are under no obligation to take any action.

It’s time to take a good, hard look at your collections process. Your community members, your board, and your budget will thank you!

 

 

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Tired of chasing your electrical contractors? Lighting of Tomorrow is here to help!

Tired of chasing your electrical contractors? Lighting of Tomorrow is here to help!

  • Posted: Jan 28, 2021
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Tired of chasing your electrical contractors?

We offer indoor & outdoor lighting solutions.

✅Licensed and insured electricians
✅City permits
✅UL Listed lighting
✅Hurricane rated poles
✅Lighting designs
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✅Electrical Maintenance
When you hire us, you get to relax! Its simple, we inspect, install and maintain your lighting.

📞Call us now for a free consultation! (954)626-0267 or email us info@lightingot.com

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MANY OF YOU LIVE IN COMMUNITIES THAT ARE GOVERNED BY TWO ASSOCIATIONS. MASTER V. SUB – PART TWO

MANY OF YOU LIVE IN COMMUNITIES THAT ARE GOVERNED BY TWO ASSOCIATIONS. MASTER V. SUB – PART TWO

  • Posted: Jan 27, 2021
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MANY OF YOU LIVE IN COMMUNITIES THAT ARE GOVERNED BY TWO ASSOCIATIONS.

MASTER V. SUB – PART TWO

By Eric Glazer, Esq.

Today we continue with  a very interesting case that was just decided by Florida’s Second District Court of Appeal.  RIVIERA-FORT MYERS MASTER ASSOCIATION, INC., v. GFH INVESTMENTS, LLC.  2020 WL 7767856.  To simplify, in a mixed-use community, meaning a community made up of commercial property and residential housing, the Master Association adopted seven amendments to the community’s master declaration. The court referred to the sub associations as the “Liner Buildings.”  In general terms, the amendments addressed the Master Association’s authority to approve proposed uses of the property located in the sub communities, (Liner Buildings) increased assessments on them, and imposed additional restrictions on the Liner’s tenants.

Again, I write about the case because it is a great learning case about the relationship between a Master and a Sub and about community living in general. 

CAN THE MASTER ASSOCIATION MAKE RULES AND REGULATIONS GOVERNING PETS THAT ARE DIFFERENT THAN THE SUBS?

We agree with the Master association’s assertion that these restrictions on number, size, type,and breed of pets are reasonable, as are the requirements that owners leash and pick up after their animals. The Liner Buildings are in relatively close proximity to the condominium buildings, and it is inevitable that dogs kept in the Liner Buildings will need to go outside and use the common areas of the property, and they can therefore be regulated to a reasonable degree to protect the community members’ mutual enjoyment of the common areas. Cf. Majestic View Condo. Ass’n v. Bolotin, 429 So. 2d 438, 440 (Fla. 4th DCA 1983) (implying in dicta that such pet restrictions are reasonable in the condominium setting). As such, the circuit court erred in enjoining the enforcement of this amendment.

WHAT ABOUT PARKING RULES?

In this case, the Master Association made a rule that said the owners in the sub associations cannot park in common areas and can only park in designated parking spaces assigned to that community.  In upholding the decision of the Master Association, the court relied on Juno By The Sea North Condominium Ass’n (The Towers), Inc. v. Manfredonia, 397 So. 2d 297 (Fla. 4th DCA 1980), a seventy-unit condominium building had three parking lots: a covered lot with twenty spaces that had been designated in the master declaration as limited common elements and sold to individual unit owners who had exclusive use of those spaces; a second lot that had been designated as a common element with fifty spaces that were unassigned; and a third lot across the street with additional auxiliary parking. Id. at 301. Due to congestion, the condominium association assigned the fifty spaces in the common area lot to the fifty units that did not own exclusive spaces in the covered lot. Id. The owners of the covered spaces sued, contending that the association could not prohibit their use of the common area lot. The Fourth District disagreed. To the contrary, the court held that the limitation on use of the common area lot passed the test of reasonableness because the association’s plan fairly ensured that each unit had access to parking. Id. at 302–05. Thus, even though the fifty-space lot remained a common area, its use reasonably could be restricted to certain unit owners.

CAN THE MASTER ASSOCIATION AMEND THE GOVERNING DOCS TO IN EFFECT CONTROL THE LEASING PROVISIONS IN THE SUB COMMUNITY?

Here is what the court said:

The Liner Buildings, although separate structures, are part of a community for which courts have granted “a greater degree of control over and limitation upon the rights of the individual owner than might be tolerated given more traditional forms of property ownership.” Seagate Condo. Ass’n v. Duffy, 330 So. 2d 484, 486 (Fla. 4th DCA 1976), approved sub nom. Woodside Vill. Condo. Ass’n v. Jahren, 806 So. 2d 452 (Fla. 2002). Indeed, the court in Seagate held that even an absolute prohibition against the leasing of units in a condominium complex can be a reasonable use limitation: Given the unique problems of condominium living in general and the special problems endemic to a tourist oriented community in South Florida in particular, appellant’s avowed objective—to inhibit transiency and to impart a certain degree of continuity of residence and a residential character to their community—is, we believe, a reasonable one, achieved in a not unreasonable manner by means of the restrictive provision in question. The attainment of this community goal outweighs the social value of retaining for the individual unit owner the absolutely unqualified right to dispose of his property in any way and for such duration or purpose as he alone so desires. Id. at 486–87. We reach the same conclusion here and conclude that the amendment adopting section 10.12 is reasonable and enforceable.

 

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Axela Technologies Secures Series A Financing Round Led by Blueprint Equity by Mitch Drimmer

Axela Technologies Secures Series A Financing Round Led by Blueprint Equity by Mitch Drimmer

  • Posted: Jan 25, 2021
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Axela Technologies Secures Series A Financing Round Led by Blueprint Equity

by Mitch Drimmer / Axela Technologies

MIAMI, January 19, 2021 (Newswire.com) – Axela Technologies, the nation’s leading provider of collection services to the Community Association Industry, announced today that it has received a minority growth equity investment from Blueprint Equity. The amount of the deal was not disclosed. In conjunction with the investment, Blueprint Equity will join the Board of Directors.

Since launching in 2018, Axela has demonstrated the effectiveness of its software solutions that manage an association’s collection files. Unlike traditional attorneys or collection agencies, Axela deploys a multi-touch, digital-first approach to engage and work with unit owners that have fallen behind on their assessments.

“Resorting to legal action and foreclosure should be the absolute last step to any collection effort,” states Martin Urruela, Axela Founder and CEO. “Yet for years, it’s been the knee-jerk reaction by community associations when a homeowner falls behind on just a few months of assessments. It doesn’t have to be so drastic and costly, and that’s where we come in.”

The financing round builds on an exceptional year for Axela, which saw its customer count grow by over 200% in 2020. The company currently works with hundreds of management companies in 21 states, and boasts a 99% success rate of resolving collection files without resorting to legal action.

“What really stuck out to us was Axela’s approach to collections, long considered an unattractive and confrontational industry,” said Sheldon Lewis, Managing Partner of Blueprint, who also joined the company’s Board.” Axela was built around a philosophy that by helping the homeowners, they help the association, and everybody wins. Powered by the right technology, the company is well-positioned to scale across this vast market and become the industry standard.”

When asked about the use of the investment funds, Urruela stated that the company would aggressively expand its sales and marketing efforts, as well as double down on product and engineering. “We have to get the word out that we have a new and innovative solution to an age-old problem. We’re extremely proud of our customer retention rate – we’ve never lost a client, or experienced a scenario where an association decides to go back to the old way of doing things after working with us.”

 

ABOUT AXELA TECHNOLOGIES

Axela Technologies is a collections firm that specializes in recovering delinquent assessments for the benefit of community associations. Axela reduces the cost of outreach and engagement by automating much of the standardized collections process, all while providing exceptional customer service and a centralized platform for all stakeholders to promote transparency and efficiency. To learn more about Axela, visit axela-tech.com.

 

ABOUT BLUEPRINT EQUITY

Blueprint Equity provides expansion capital to rapidly growing enterprise software and technology-enabled services businesses across North America. To learn more about Blueprint Equity, visit onblueprint.com.

 


 

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Financial Screening of Purchasers: How Far Is Too Far? by Kaye Bender Rembaum

Financial Screening of Purchasers: How Far Is Too Far? by Kaye Bender Rembaum

  • Posted: Jan 14, 2021
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Financial Screening of Purchasers: How Far Is Too Far?

by Kaye Bender Rembaum / Rembaum’s Association Roundup

 

A few months back a case came before the county court in the 20th Judicial Circuit for Collier County, wherein a prospective buyer challenged the validity of a board-adopted rule which required that all prospective buyers provide two years of tax returns with their application for ownership approval. This requirement was in addition to the background check and credit check that were also required. While this is only a county court case and, therefore, has no precedential value other than to the parties themselves, there are principles addressed of which associations and managers should be aware; even though many learned attorneys would opine that the conclusions of the court are legally flawed under the facts of the case and, if appealed, would likely be overturned. Nevertheless, there are still nuggets of knowledge that can be gleaned from this case.

In this case, Mech v. Crescent Beach Condominium Association, Inc., Case No. 19-SC-3498, decided June 2020, the purchaser, who was the plaintiff, was seeking to buy a unit at Crescent Beach Condominium for $400,000, which was to be paid in cash. The purchaser purportedly had a clean background and a credit score of 800. Nonetheless, the board required that, like all other prospective purchasers at the condominium, this purchaser needed to produce his tax returns in order for the association to approve the transfer. The purchaser refused to provide his tax returns and cited his good credit score and clean background as evidence enough for approval. Eventually, an impasse was reached, and the purchaser canceled the contract. Then he brought the county court lawsuit challenging the requirement. (Generally speaking, typically under current Florida law, the purchaser would not have legal standing to even bring the claim against the association; but it does not appear that this legal infirmity was raised by the association, which allowed the case to proceed.)

The purchaser challenged the rule, arguing that the rule was not within the scope of the association’s authority to adopt, nor did it reflect reasoned decision-making. (It is noteworthy to point out that, after the initiation of the lawsuit, the association amended its declaration of condominium to provide that the association may require tax returns in an application for approval of a sale. However, this is not relevant to the conclusions of the Court in this case since it occurred after the litigation was filed.)

The association argued that the tax returns are necessary because they provide more information than a credit report and could help ensure that the potential purchaser is “a good credit risk.” The Court, however, did not agree, calling the argument “nonsensical.” The Court goes on to identify what this judge considers to be the best indicator of a person’s financial history, and as a result, it is the only information the association is allowed to seek. (We note that this conclusion is also without a stated legal basis.)

In the final judgment, some might argue that the Court goes way beyond what proper judicial consideration and conclusions typically contain and indicates that she could find “NO justification for the invasive requirement that a full, or even partial, return would be required when, in fact, the board already requires a full background check and credit check.” While no legal support for the conclusion was provided, the Court held that the request for tax returns was invasive and unnecessary and that the requirement was “shocking.”

 

The Court objected to the blanket requirement that applied to every applicant regardless of the results of their background and credit checks. Had the tax returns only been required when an applicant’s credit history showed a history of financial instability or delinquencies, the rule may have been upheld by the Court. How-ever, the Court held that “to take a position that ‘every person’ who applies to be a member at [the association] is patently unreasonable and shall be stricken.” Lastly, also without a legal basis or ability, the Court ordered the association to strike all reference in its condominium documents which require potential purchasers to produce tax returns unless the association can show good cause to request the information.

A brief discussion regarding the adoption of rules and regulations is necessary to highlight lessons that can be learned from this case. Generally, both condominium and homeowners association governing documents will typically provide that the board of the directors has the authority to adopt rules and regulations for the community. While some governing documents may contain restrictions requiring a membership vote to approve new rules, it is common for the governing documents to provide the board with the authority to adopt rules and regulations. (Careful review of the documentary authority for each community is recommended as some may limit the rule-making authority to common areas only and not to the residential property within the community.)  Although the board is generally authorized to adopt rules and regulations, those rules and regulations must not conflict with any provision expressly set out in the governing documents or reasonably inferred from them, and they must be reasonable. (This should be contrasted with covenants recorded in the County’s official records, which may be unreasonable and still be legally enforceable under long-standing Florida case law.)

 

In Beachwood Villas Condominium v. Poor, et. al., a 1984 Fourth District Court of Appeal (4th DCA) case  in which several owners challenged rules enacted by their association’s board of directors, the Court noted that there could be two sources of use restrictions: (i) those set out in the declaration of condominium and (ii) those adopted by the board. As to the use restrictions set out in the declaration, the court held that such restrictions are “clothed with a very strong presumption of validity,” as initially provided in Hidden Harbor Estates v. Basso (a 1981 4th DCA case).

In examining board-adopted rules, the court first must determine whether the board acted within its scope of authority—in other words, whether the board had the express authority in the documents to adopt the rule in the first place. If the answer is “yes,” the second question to determine is whether the rule conflicts with an express provision of the governing documents or one that is reasonably inferred. (If the documents are silent on an issue, the inference is that it is unrestricted. Adopting a rule to restrict a topic that the declaration is otherwise silent about would conflict with the inferred unrestricted use and therefore be unenforceable.)  If these first two issues are found to exist, the court will then determine if the rule is reasonable. The board’s exercise of its reasonable business judgment in adopting a rule is generally upheld so long as the rule is not “violative of any constitutional restrictions and does not exceed any specific limitations set out in the statutes or condominium documents.”

 

In examining your own board-adopted rules, ask the following:

  • Did the board have the power to adopt the rule?
  • Is the rule in accord with with the declaration, articles of incorporation, or bylaws?
  • Is the rule reasonable under the circumstances? (While ultimately only a court can make this final determination, the board should use its best judgment, with assistance of its counsel, to reach this decision.)

If the answer to these three questions is “yes,” then the rule should be found to be valid and enforceable by the court upon an owner challenge.

Ultimately, what can be gleaned from Mech v. Crescent Beach Condominium Association Inc. is that even if the association acts reasonably when adopting rules and even when amending the declaration, a lower court judge can reach almost any decision it wishes. Had the provision at issue only required tax returns when the background or credit checks revealed that the prospective purchaser had a history of financial irresponsibility, the provision may have withstood judicial challenge by this particular judge. Additionally, had the provision requiring tax returns been set out in the declaration before the initiation of the lawsuit, the outcome may have been different under existing, well-established case law.

Bottom line, whenever the board is considering new rules, it is recommended that the board consult with the association’s legal counsel before adopting them.


Jeffrey Rembaum, Esq.

Board Certified Specialist in Condominium and Planned Development Law and a community association lawyer with the law firm Kaye Bender Rembaum, in its Palm Beach Gardens office.

His law practice consists of representing condominium, homeowners, and cooperative associations, developers and unit owners throughout Florida.

He can be reached by email at JRembaum@KBRLegal.com or by calling 561-241-4462.

 

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We want to help your community thrive! If you are in need of property management services or any of our other services by Seacrest Services

We want to help your community thrive! If you are in need of property management services or any of our other services by Seacrest Services

  • Posted: Jan 14, 2021
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We want to help your community thrive! If you are in need of property management services or any of our other services, then give us a call today at 561.697.4990 to learn more.

by Seacrest Services

From full-service property management and professional accounting services to complete landscaping and property maintenance needs, Seacrest Services can tailor a specific plan for your community association or commercial property. We take great pride in the longevity of our client relationships and continued customer satisfaction. We maintain a team of experienced employees with expert knowledge on the industry, ensuring that your property is treated with the highest level of professionalism.

 

SERVICES WE OFFER

We have your property management needs covered – inside and out.

Property Management – All of our property management personnel are state licensed community association managers and undergo Seacrest’s extensive in-house training program. Quality service is of utmost importance and the basic expectation of the Seacrest Management Team.

Maintenance and Janitorial Services – Seacrest Services is proud to offer our customers an experienced and capable management team utilizing the latest building maintenance equipment, cleaning techniques, and commercial janitorial supplies. We aim to meet and exceed all of your standards of cleanliness and enhance your facility’s appearance.

Customer Service – We understand that your residents are the lifeblood of your community, providing quality customer service to each of them is our privilege. Our interactive Live Operator Customer Service Program is tailored to fit the unique needs of each association we oversee. This approach helps to promote a harmonious living environment all while reducing the need for direct Board involvement in day-to-day issues.

Accounting & Financial Services – Since no one accounting system works for everyone, we customize your system to meet the specific requirements of your association. Our state-of-the-art technology gives you the information you need at the touch of a button while our skilled accounting team provides support and assistance.

Landscape Services – With a dedicated team of experienced and knowledgeable landscape professionals, we have the expertise to create and maintain a lush, healthy landscape for your property. Our comprehensive landscape services eliminate the hassle of hiring multiple vendors and ensure you receive the highest quality services from one easy source.

 

Let’s transform your facility!  Request a Bid!

When you submit a request to Seacrest Services, one of our representatives will call you to set up a time to meet. We will then walk your property or the job area with you. A site walkthrough is important because no two properties are the same. A variety of variables, such as square footage, the scope of work, and condition of the property, makes each situation unique. Our representatives will work with you to design a custom-tailored solution to fit your property’s individual needs.

 


Seacrest Services

From full-service property management services and professional accounting services to complete landscaping and property maintenance needs, Seacrest Services can tailor a specific service plan for your commercial property or community association. We take great pride in the longevity of our client relationships and our customers’ continued satisfaction with our quality property management services. We maintain one of the highest levels of experienced employees in our industry, ensuring that your property gets the professionalism and knowledge you deserve.
With offices in West Palm Beach and Pompano Beach, Seacrest is uniquely positioned to handle the needs of South Florida’s community associations, commercial properties and businesses. Since 1975 we have been a leader in community association management including property managementaccountinglandscape servicesmaintenance servicescommercial property services and even construction. To see how Seacrest can lead your community into the future, call us today at 888-828-6464.
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CAM LICENSING COURSES: START YOUR NEW CAREER | SFPMA

CAM LICENSING COURSES: START YOUR NEW CAREER | SFPMA

  • Posted: Jan 12, 2021
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CAM LICENSING COURSES: START YOUR NEW CAREER

Online Courses for Licensing can be completed while your at home.

This might be a great time to Take your online Testing and become a CAM

CAM License Courses and Board Members Certification in Florida


Our Industry Partners provide: Licensing Classes, Training and Licensing for CAM – Board Member Courses

Enjoy our self-paced online class and comply with the State Education Requirement for Community Associations.

As you were thinking of starting up property Management Services sometimes working with a broker for sometime can help you create relationships with other sales associates in that office that can prove to be good referrals. If you’ve had your license for 5 years you would qualify to get your broker’s license and when you feel comfortable it may be a good time to transition to your own company or even a different franchise. the property management association is a good tool, there is an enormous amount of liability and property Management

 

 

 

 


 

Property Management Forms

Now that you are getting your License you will need Management Forms!

We have partnered with USLegalForms to give our clients Every Form you will need to help you set up your business, Lease Forms, Incorporation Documents, and so many others………

Property Management Packages contains the essential forms to assist you in leasing your premises, complying with legal requirements, and keeping relations with your tenants amicable. Forms include the 1. Landlord Tenant Closing Statement to Reconcile Security Deposit, 2. Residential Rental Lease Application, 3. Residential Rental Lease Agreement, 4. Commercial Building or Space Lease, 5. Security Deposit Agreement and other forms.

 

We offer Subscriptions – Where for a small fee you can download and get access to EVERY FORM YOU WILL NEED FROM THOUSANDS OF FORMS

 

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