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Financial Screening of Purchasers: How Far Is Too Far? by KBRLegal

Financial Screening of Purchasers: How Far Is Too Far? by KBRLegal

  • Posted: Dec 03, 2021
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Financial Screening of Purchasers: How Far Is Too Far?

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.

(Reprinted with permission from KBR Legal)

Jeffrey Rembaum’s, Esq. of Kaye, Bender, Rembaum attorneys at law, legal practice consists of representation of condominium, homeowner, commercial and mobile home park associations, as well as exclusive country club communities and the developers who build them. Mr. Rembaum is a Certified Specialist in Condominium and Planned Development Law. He is the creator of ‘Rembaum’s Association Roundup’, an e-magazine devoted to the education of community association board members, managers, developers and anyone involved with Florida’s community associations.  His column appears monthly in the Florida Community Association Journal. Every year since 2012, Mr. Rembaum has been selected to the Florida Super Lawyers list and was also named Legal Elite by Florida Trends Magazine. He can be reached at 561-241-4462.

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Discover which solutions should be implemented to get the most value out of your lake and pond management plan.

Discover which solutions should be implemented to get the most value out of your lake and pond management plan.

  • Posted: Dec 02, 2021
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5 Tips to Enhance Your Management Plan

An annual management approach is recommended as the most impactful, sustainable, and—in the long run—cost-effective way to maintain your waterbody. A standard management plan typically includes visual site inspections, shoreline buffer management, and water quality testing, to name a few. Beyond these traditional management tools, there are a number of solutions that can help take your management plan to the next level and keep your waterbody healthy and beautiful for years to come.

hydro-raking-pond-muck-depth-restoration

Restore Depth & Volume, Experience Immediate Results with Hydro-Raking

Whether you already have an annual management program in place or you’re in the planning process, consider adding on a mechanical hydro-raking service. A hydro-rake is essentially a floating barge equipped with a backhoe attachment. It can remove up to 500 pounds for muck, detritus, and nuisance plants from the water in a single scoop.

The results are immediate – the restoration of depth and volume will prevent flooding during rainstorms and the removal of nutrient-polluted muck will eliminate a food source for undesirable plants and algae. Hydro-raking provides a modest “reset” of the waterbody, making the implementation of standard annual management services more impactful.

 

shoreline-erosion-restoration-sox

Preserving The Beauty & Safety of Your Shoreline

Shoreline erosion is a natural occurrence that’s caused by weather and wildlife, but it can also be expedited by overuse or neglect. Not only is shoreline deterioration unsightly, it can negatively impact the water quality, increase the risk of flooding, and endanger anyone who gets near the shoreline for swimming, fishing, mowing, or enjoyment of nature.

There are a few ways to strengthen a deteriorating shoreline. Beneficial vegetative buffers can be cultivated by introducing native, deep-rooted plants. As the root systems expand, they create a strong structure that contains soil naturally. In severe cases, SOX Solutions can be utilized. This innovative knitted mesh material is filled with loose sediment and strategically anchored for a seamless look. Property owners may choose to integrate sod or landscaping elements to enhance aesthetic appeal. These solutions can halt erosion and prevent poor water quality conditions for many years so that you can focus on proactive annual management strategies.

 

fish-stocking-community-pond

Stock Fish for Aquatic Weed & Mosquito Control

You may think that fish stocking is reserved for trophy ponds owned by passionate sports fishermen, but all ponds can benefit from the introduction of new fish species. These selections will be based on the challenges your waterbody faces.

For instance, lakes and ponds with invasive aquatic weed infestations may benefit from the introduction of triploid grass carp, which voraciously feed on undesirable plants. This is a fantastic alternative to herbicides in some regions. Lakes and ponds crippled by excessive mosquito populations can benefit from the introduction of small predators like minnows, guppies, and the aptly named mosquitofish as an alternative to larviciding. No matter your annual management goals, there is a fish that can help support them.

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Educate Yourself and the Community

It may not be a typical service, but education is as important as any other element of your annual management program. Without understanding the outside factors that impact the balance of your waterbody, it will be more difficult to maintain its health and beauty. Whether your waterbody is located in a homeowners community, a private property, or a municipal area, it’s crucial to keep others informed about their impact on the land around them:

  • Encourage residents to properly dispose of pet waste and trash
  • Keep surrounding land clear of grass clippings, twigs, and other debris
  • Allow native plants and grasses to grow, untrimmed, around the shoreline
  • Reduce use of lawn and garden fertilizers, or switch to organic products
  • Report the presence of suspected invasive plants and animals
  • Speak with an Aquatic Biologist before applying any products to the water

 

Achieve Your Dream Waterbody

Paired with standard solutions that we implement as part of a SOL Pro Plan, like nutrient managementfountain maintenance, and water quality testing, these extra steps will help prepare your waterbody with the long-term future in mind. Lake and pond management isn’t a sprint, it’s a marathon. A maintenance plan built on sustainable, proactive practices will help you achieve and maintain the waterbody of your dreams for years to come.

 

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With all the news about the Smash and Grab crimes in the news, We felt compelled to let you know the members in our Security and Surveillance helping Condo and HOA’s with Protection Services.

With all the news about the Smash and Grab crimes in the news, We felt compelled to let you know the members in our Security and Surveillance helping Condo and HOA’s with Protection Services.

  • Posted: Nov 30, 2021
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First of all it is the Safety of each and every Owner in our buildings that concerns us.  Now days this should be the first thought for all Board Members.

Next should be How and Where you can find the best companies for this decision for protection of the property.

 

SFPMA provides a Directory of the Top Professionals for Condo and HOA’s in Florida. 

This open Directory is avail for all to view, in budget season you should be looking for the right companies for your buildings and Owners within, Find and reach out for the services they offer you and your communities.

 

Below are a few of our Member Companies: 


United Security, Inc

1.800.874.6434

United Security Inc. (USI) provides contract security solutions and investigation services to a select group of vertical markets. For the past 29 years, USI has created safe, secure environments for commercial and government employees and customers by investing in our people, innovation and relationships. USI is committed to delivering:

  • Responsive management and security personnel
  • Continuous quality improvement and training
  • Consistent, client-focused service and performance

 

For the past 27 years, USI has created safe, secure environments for commercial and government employees and customers by investing in our people, innovation and relationships. As engaged, owner-operators, our investment begins with recruitment and screening to ensure we have the right people and continues through our policies and practices that enable USI to properly train and retain the best personnel.


ArchAngel Security

561-542-9263

Welcome to Archangel Security

After years in parking compliance and towing services, we saw a real need for organized, reliable, and effective security services for residential and commercial property managers.

We keep costs low, services safe and simple, and always protect the property first. Our licensed and trained security monitors are ready to help you take and maintain control of your parking compliance and safety needs.

We are licensed in the state of Florida, LIC #B1400043 and insured.

 

 


FSW First Response Solution Inc

352-818-9499

Safety is Top Priority

FSW First Response Solution Inc. serves residential, commercial, government, and industrial clients. Through our top-notch, 24-hour security services, we’ll ensure your safety and protection.

In this modern age, it is never wrong to be extra careful when it comes to hiring security. We should do all the things necessary to ensure our property and loved ones’ safety.

Hire our expert crew here at FSW First Response Solution Inc. We are a family-oriented organization that provides safety and security solutions to every household and establishment in Florida. Contact us to request for free quotes and estimates!

 

 


Here are other ways Buildings should look into for Security

All In One System – manage so many devices on you properties. you control access for owners and guests at your fingertips!


Smart Entry Systems

(626) 213-7557

All In One System – manage so many devices on you properties. you control access for owners and guests at your fingertips!

  • Simple Installation, Wirelessly connects to the Internet using plain WiFi without the need to pay for land lines, POTS, VOIP, SIP, nor LTE.
  • Surveillance Camera Integration, Pull images from other camera(s) mounted near by the entrance for a multi-directional view of the access  w/ event in the entry log.
  • Create temporary guest codes for pre-authorized visitors using the phone app.
  • Conveniently manage your property with a browser from anywhere with Internet access.
  • Accept deliveries from any shipper, residents can collect packages 24/7. Mix and match from 9, 6, or 4 door models to suit your community.
  • Eliminate coins from communal washers, dryers, electric car charging stations, short term rentals of conference and party room

Smart Entry Systems

http://www.smartentrysystems.com/
(626) 213-7557
sales@smartentrysystems.com


iDENTYTECH Solutions America, Inc.

888 703-7150

iDentyTech is a leading provider of intuitive Identity management products and solutions. Founded in 2010 IdentyTech™ provides its worldwide customers with best-in- class complete identity management solutions. We further offer custom engineered solutions for those customers requiring proprietary solutions. IdentyTech has field proven solutions for Corporate Enterprise, government and Financial services, healthcare, schools, Transportation, Small Medium businesses and many others.

With over 15 years’ experience in the industry, our team will respond rapidly to your needs, no matter how complex or unique they are. Matched by business-focused, technical support, our response to your objectives has led to the highest levels of customer satisfaction in the industry. At the heart of the company, is a team of skilled developers, programmers and technical support staff, Along with sales, marketing and administration staff that are committed to providing our customers with unrivaled solutions, expertise, service and support.

 

 

Rodrigo Perez de Tudela
305-505-7132
rodrigo@identytech.com
Sales and Business Development Director
iDENTYTECH Solutions America, Inc.


 

FIND COMPANIES TO HELP YOU WITH YOUR BUDGETS RFP’S

If you are not a Listed Member Get listed today!

 

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Water leaks are one of the leading causes of homeowners’ insurance claims, Our AKWA Technologies system does this for you automatically 24/7/365 whether you are at home or not, minimizing the damage caused…

Water leaks are one of the leading causes of homeowners’ insurance claims, Our AKWA Technologies system does this for you automatically 24/7/365 whether you are at home or not, minimizing the damage caused…

  • Posted: Nov 30, 2021
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Water Damage – The most common cause of loss for condo owners

WATER DAMAGE: THE MOST COMMON CAUSE OF LOSS FOR CONDO OWNERS

From burst pipes to appliance leaks, to HVAC malfunctions and more, according to PURE’s claims data, water damage is the number one cause of loss among condo owners. In fact, more than 70% of condo claims reported to PURE have been the result of water damage. Although some instances are out of a condo owner’s control—like a toilet overflow originating from the unit above that allows water to leak through the ceiling to a PURE member’s condo below, or water backup from a building’s rooftop pool—the majority of claims can be prevented by taking proactive steps today to reduce the likelihood of water damage in the future. ​

Research and analysis conducted by our claims and risk management team uncovered some of the most frequent types of water losses experienced by PURE members and steps you can take to protect your condo and the other valuable belongings within it. ​

Appliance Malfunction When the water filtration system installed underneath a member’s sink failed overnight, water flowed throughout the kitchen and surrounding rooms for several hours until the member woke up the next morning. Luckily, the building was able to shut off the water and begin immediate remediation to prevent the damage from becoming even more severe but not before the marble tile flooring, kitchen cabinets, wall panels and drywall were extensively impacted. Damage was even caused to the neighbor’s unit below, resulting in more than $100,000 of damage. Home appliances with pipes or other fixtures that feed into a water line—including refrigerators, dish washers, ice makers, washing machines, toilets, HVAC systems and more—have the potential to malfunction, develop blockages or spring leaks that can lead to significant water damage. However, there are a number of inexpensive devices ranging from $50-$200 that can help detect or even prevent such an event from occurring.

To mitigate your risk, consider taking the following steps:​

  • Install water leak detection sensors on individual appliances prone to water loss. These devices have the ability to detect and notify you of a water leak. In addition to sounding an alarm, Wi-Fi connected devices can notify you even when you’re away from home by sending an alert to your smartphone.

  • Automatic water shut off devices, go a step further by automatically turning off the water supply when a leak is detected to prevent further damage.

  • Install an HVAC safety switch or float switch on the water pan underneath your unit to automatically stop the system from operating when an overflow is detected. While your unit may have been equipped with a safety switch at the time of installation, older units are less likely to be equipped with these devices.

  • Install a drain pan beneath your washing machine to catch leaks due to washing machine overflow or hose failure. The drain pan, which slides underneath your washing machine and provides the first line of defense against leaks, is connected to a drainpipe to move water away from the area. Because drain pans are typically made of plastic or another composite material that may break or crack over time, it’s important to be observant of the drain pan’s condition and replace it periodically to be adequately protected.

  • Opt for braided metal supply lines. Ensure all appliances that are connecting to a water source are equipped with braided metal hoses which are far more resistant to leaks compared to standard rubber hoses. At about $10 each, this simple and inexpensive step can help to prevent a costly claim.

  • Prevent toilet blockages. To avoid a toilet overflow, consider the types of materials and quantity of products flushed. Note: ‘Flushable’ wipes should not be flushed and put into the sewage system.


Water leaks are one of the leading causes of homeowners’ insurance claims.

  • Leaks can occur on every level of your condominium from the penthouse to the ground floor common areas. Oftentimes they begin at your washing machine, water heater, toilets, sewer/sump pump, refrigerator, dishwasher, sinks, showers, HVAC system, and more insidiously when pipes start leaking in the walls. This makes water damage something most homeowners will experience in their lifetime.
  • Single unit water damage is troublesome enough – in a condominium environment, adjacent units and even units several levels below can be adversely affected.
  • Stopping the flow of water immediately is the key to mitigating the extent of the damage.

Our AKWA Technologies system does this for you automatically 24/7/365 whether you are at home or not, minimizing the damage caused and in many cases preventing the disaster that would follow.

 

Protect your assets from water damages caused by water leaks

For High-Rise Condos / Multi-family Homes / Commercial buildings

Offices in Florida and Canada
Valérie Mélignon
Executive Director, Strategic Alliances
941-726-7806
valerie@AKWAtek.com
www.AKWAtek.com

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A guide to holiday decorating that will keep you off your HOA’s naughty list

A guide to holiday decorating that will keep you off your HOA’s naughty list

  • Posted: Nov 26, 2021
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A guide to holiday decorating that will keep you off your HOA’s naughty list

Check your association’s bylaws before making your home festive

The holidays are here, and many of the 74.1 million Americans who reside in community association neighborhoods are preparing to decorate their homes. These homeowners should be aware that many community associations have bylaws that regulate lights, trim and decorative displays. The most common association rules that regulate holiday decorations address:

  • Time. Many homeowners associations (HOAs) regulate the hours that lights may be illuminated and dates on which decorations can be displayed before and after a holiday.
  • Location. Most community association rules limit placement. In neighborhoods of single-family houses, decorations are generally permitted on the exterior of the home and must be kept within the boundaries of the yard. Owners should ensure decorations do not blow into a neighbor’s yard. In attached condominiums, many associations limit or preclude holiday decorations in common areas such as hallways and doors. Most condominium bylaws contain a restriction that prohibits an owner from making a modification to the exterior of a unit without permission from the association.
  • Nuisance. Bylaws typically preclude homeowners from creating a “nuisance.” While this definition is somewhat subjective, it could include holiday lights that are too bright or Christmas music that is played loudly throughout the night. In most cases, common sense dictates what may be disruptive to neighbors.
  • Safety. Most bylaws or rules aim to prevent dangerous or hazardous activities. If your holiday display creates a fire hazard or attracts numerous visitors who park in the street and block access for emergency vehicles, you may run into issues with your association or the local municipality.

HOA rules are intended to protect the health, safety and welfare of the community; complying with the restrictions is mandatory. Homeowners who fail to do so may initially receive a warning from the association, but continued noncompliance could result in fines or a court injunction to have the decorations removed.

Homeowners who have an issue with the holiday-decorations rules should request a meeting with the board to ask if they can be revised. Board members should be receptive to reasonable input from owners and craft rules accordingly; most owners don’t want an Ebenezer Scrooge on the board.

Fair Housing Act implications may make some holiday rules unenforceable. Religious discrimination is illegal under the act. An HOA is not allowed to show preference to one religion over another. When drafting rules, associations should be careful to avoid using terms that refer to specific holidays such as Christmas, Hanukkah or Kwanzaa. Rather, the rules should apply to all “holiday decorations” or reference “holiday trees” to ensure the religious beliefs of certain owners are not given preferential treatment.

Before decorating your home, review the community association rules to determine what restrictions, if any, exist that would regulate holiday displays. It’s a good idea to contact the community manager or the board of directors for guidance. While the holidays are a time to celebrate, owners who fail to review their association’s rules may end up with coal in their stockings. by By Kevin M. Hirzel

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Find Members ready to help with Management, Business and Services for your properties.

Find Members ready to help with Management, Business and Services for your properties.

  • Posted: Nov 24, 2021
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Find Members ready to help with Management, Business and Services for your properties.

Property Maintenance is an integral part of managing the day to day operations for every type of property.

Search the Members Directory for Companies working with Property Management, Condo and HOA properties in Florida from Tallahassee to the Keys.


 

Become a Member

Get your company listed on the Florida Directory

Use Code till Dec 30, 2021 and save on your membership with SFPMA

Use the code below at signup/payment screen and your membership is set at 255.00.

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Inspection & Public Adjuster

Inspection Companies
Insurance Public Adjuster
Also See: Permit Services

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Tenant Screening Services

Become a Member

Get your company listed on the Florida Directory

So Property Managers, Condo & HOA Board Members can find you!

 

THANKSGIVING IS BECOMING A TOUGH HOLIDAY  By Eric Glazer, Esq.

THANKSGIVING IS BECOMING A TOUGH HOLIDAY By Eric Glazer, Esq.

  • Posted: Nov 24, 2021
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THANKSGIVING IS BECOMING A TOUGH HOLIDAY

By Eric Glazer, Esq.

Who doesn’t love the tradition of Thanksgiving?  It starts off with The Macys Thanksgiving Day Parade from the morning to noon.  By noon the house starts to smell great, football comes on the tube, the family gets together, fights about politics break out and everyone eventually goes home both full and angry.  You gotta love Thanksgiving.

The last two years have been tough though.  Thanksgiving in 2020 kept almost all families apart because of the Covid 19 situation.  More families probably had Thanksgiving by ZOOM than they did in person.  It was sad, countless other families had an empty plate or two at the dinner table because of loved ones they lost due to the virus.  It really was a nightmare for almost all of us.

This year, while Covid certainly seems to be far less of a factor, we can’t help but think about the tragic loss of lives at the Champlain Towers in Surfside.  I had to see it for myself and I will tell you that the scene was indescribable.  I saw the 9-11 destruction in person and while certainly on a smaller scale, Champlain Towers was no less dramatic when you realized how many lost their lives in the rubble.  How many were simply unaccounted for.

So what will Thanksgiving 2022 be like in our condominium associations?  I don’t want to be a downer on the holidays, but for many, it’s not going to go well.  Of course we will still be happy that we are sitting with our families for another year.  If we have good health, we will be happy for that.  But I guarantee this, this time next year many Florida condominium unit owners may not be able to afford to make a turkey dinner in their homes.

As I said on the show last week, it’s as if a perfect storm is coming together all at once.  Food prices and gasoline are soaring, the price of insurance in our condominiums and the cost of labor are soaring.

Insurance in some condominiums is tripling in price resulting in incredible increases in monthly assessments.  And of course, by this time next year, rest assured that there will be laws in place making it impossible to waive reserve funding in your community at least for your roof, electrical and structural components.  In other words, besides the cost of insurance, the fact that you won’t be able to waive reserves will make your monthly assessments skyrocket even more.  Next Thanksgiving there are going to be many people sitting at their Thanksgiving tables wondering if this is the last Thanksgiving they will be spending in a condominium that they may have been living in for decades.  They’re simply getting out priced and won’t be able to afford it any longer.  And it’s sad.

But have no fear……we know how much Florida loves to treat its developers.  So look forward to laws that will allow developers to buy up units, kick out the old folks and build more buildings that people from mostly foreign countries can buy and put tenants in.

So to all of you and your families….I wish a happy and healthy Thanksgiving Holiday, and I hope it’s not the last one you get to spend in your current home.

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We Are Thankful For YOU – We are grateful for our dedicated colleagues, vendor partners, and loyal clients who have a passion for preserving aquatic resources.

We Are Thankful For YOU – We are grateful for our dedicated colleagues, vendor partners, and loyal clients who have a passion for preserving aquatic resources.

  • Posted: Nov 24, 2021
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We Are Thankful For YOU

We are grateful for our dedicated colleagues, vendor partners, and loyal clients who have a passion for preserving aquatic resources.

As Thanksgiving approaches, we’d like to thank you for your ongoing support. Because of you, we get to enhance and preserve lakes and ponds across the country while also making positive impacts in our local communities through The SOLution. We hope you have a safe and joyful Thanksgiving with your loved ones!

https://www.youtube.com/watch?v=Rjgdc8s7FFU&t=1s

Our offices will be closed on the following dates:

Thursday, Nov. 25 &
Friday, Nov. 26

Thanksgiving Holiday

Friday, Dec. 24 & Monday, Dec. 27

Christmas Holiday

Monday, Jan. 3

New Year’s Day (observed)

During this time, contact us here or leave a message at 888-480-LAKE (5253).

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Webinar: Why You Need Good Governing Documents by Becker Lawyers

Webinar: Why You Need Good Governing Documents by Becker Lawyers

  • Posted: Nov 24, 2021
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Webinar: Why You Need Good Governing Documents

Learn why it’s important for condo and community associations to have “good governing documents” and how that is the starting point for effective enforcement. Some of the topics covered will include:

  • Maintenance Responsibilities
  • Conflicts within governing documents and with the statutes
  • Sale and Lease Restrictions
  • Material Alterations

 

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SPEAKERS:

Joseph Adams
SHAREHOLDER
Becker
jadams@beckerlawyers.com

Kevin L. Edwards
SHAREHOLDER
Becker
kedwards@beckerlawyers.com

 

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Real Estate Boom Meets the Crypto Boom Here in Miami – HUGO ALVAREZ

Real Estate Boom Meets the Crypto Boom Here in Miami – HUGO ALVAREZ

  • Posted: Nov 21, 2021
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Real Estate Boom Meets the Crypto Boom Here in Miami

Like our climate, there is no denying that South Florida’s real estate market has been scorching hot.  But while South Florida is well known for its real estate booms and busts, the current cycle is also running right into the latest technological wave – cryptocurrency.

Home prices have climbed to record numbers.  Those prices have been driven by a lack of supply but also by COVID related work and travel restrictions, which make year-round warm weather climates like South Florida very attractive.

At the same time, and while more people are staying at home to work, we have also seen a surge in cryptocurrency demand.  At the time this is posted, Bitcoin is trading at prices greater than $65,000 and analysts are predicting that its price will rise higher by year’s end and beyond.

Miami is currently undergoing a tech boom of its own.  This tech boom coincides with the ongoing and growing demand for cryptocurrency coupled with its unique geographic location.  Miami has hosted, and will continue to host, numerous high profile cryptocurrency events.  And with those high-profile events we will see more demand for our real estate.

All this to say, it is only a matter of time before using cryptocurrency to purchase real estate becomes routine.  We are not there yet but that day is coming.

Opening potential real estate transactions to crypto holders broadens the pool of buyers that sellers can sell to.  But doing so is not without risk.

Crypto is unregulated and prone to fraud.  Crypto transactions may violate certain laws and regulations intending to govern “traditional” transactions.  For instance, the anonymity associated with cryptocurrency may prove challenging when trying to trace the source of the funds which is often a requirement for a “traditional” real estate transaction.  Additionally, given the volatile nature of the crypto price fluctuations it may be difficult to peg the actual sales price of the real estate until the “very last minute.”  And then there are numerous tax implications associated with any crypto transaction that may further complicate a real estate transaction.

While there are numerous challenges in rendering a crypto transaction common place today, with the advent of Web 3.0, and the continued growth of cryptocurrency, it is only a matter of time before real estate transactions are routinely funded in this way.

And Miami, with its booming tech movement and thriving real estate market, will be at the forefront of this coming trend.

Feel free to contact me should you wish to discuss Miami’s ongoing tech movement, crypto, or real estate in general.


Hugo Alvarez

HALVAREZ@beckerlawyers.com

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Sunshine Laws” for Condominium Associations

Sunshine Laws” for Condominium Associations

  • Posted: Nov 16, 2021
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Sunshine Laws” for Condominium Associations

by Becker

Florida’s Sunshine in the Government Act, (“Sunshine Laws”) requires transparency and disclosure in government and business. Although the Sunshine Laws do not apply to condominium associations, the Florida Condominium Act (“Act”) found in Chapter 718, Florida Statutes, contains its own set of “sunshine” requirements for these communities, with transparency being the key to compliance. Issues generally arise in condominiums when there is or appears to be a lack of transparency between the board of directors and the association members.

First, boards need to determine which gatherings must be open to association members. While boards may desire to avoid certain topics in open meetings, the Act requires board meetings to be open to members; in fact members have a statutory right to attend such meetings. A “meeting” of the board occurs when a quorum of the board members is present. There are two statutory exceptions to the requirement that board meetings must be open to the members: 1) meetings with the association’s attorney to discuss proposed or pending litigation, if the meeting is held for the purpose of seeking or rendering legal advice, and 2) when “personnel matters” are under discussion. Personnel matters should be limited to discussions of specific issues pertaining to association employees. So, can individual board members meet or call one another to discuss association business as long as the meeting or phone call comprises less than a quorum of the board? Yes. However, remote meetings of a quorum of the board still constitute meetings that must be open to members. Notwithstanding the foregoing, the Act provides that members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail.

The second important “sunshine” law is the noticing of meetings. The requirement that meetings be open to members is of little benefit if owners do not know when or where the meetings are taking place. Under the Act, notice of all board meetings must be posted conspicuously on the condominium property for at least 48 hours before the meeting. However, certain meetings, such as meetings where non-emergency special assessments or amendments to rules regarding unit use are considered, require notices to be mailed, delivered, or electronically transmitted to the unit owners AND posted conspicuously on the condominium property not less than 14 days prior to the meeting. The notices also need to clearly identify the agenda items that will be discussed at the meeting.

The Act also provides owners certain rights at board meetings. Owners have a right to speak at all open board meetings on all designated agenda items. The right to speak does not mean that every unit owner is entitled to endlessly debate motions, but it does mean that the owners are entitled to be heard regarding matters the board intends to consider at the meeting. The association may adopt written reasonable rules governing the frequency, duration and manner of unit owner statements. Owners may also record or videotape such meetings.

What about committees? The sunshine laws also apply to committees that are empowered to take final action on behalf of the board, or committees that make recommendations to the board regarding the association budget. Under the Act, all committees are subject to sunshine requirements unless the association bylaws specifically exempt committees from the sunshine laws.
If you have questions about these laws and how to handle meetings in your community, contact your community association attorney.