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Legal: Comcast of Florida LP v. L’Ambiance Beach Condominium Association, Inc.

Legal: Comcast of Florida LP v. L’Ambiance Beach Condominium Association, Inc.

  • Posted: Dec 13, 2021
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Comcast of Florida LP v. L’Ambiance Beach Condominium Association, Inc.

17 So.3d 839 (Fla. 4th DCA 2009)

By: Jay Roberts, Esq.

The ability for condominium associations to terminate certain contracts using a statutory procedure is at the heart of THIS CASE. In 2002, Comcast of Florida, L.P. (“Comcast”) entered into an agreement with the condominium developer (on behalf of the Association) that granted Comcast an easement to install cables and offer cable television services to residents at a bulk-discount rate. Every unit owner received and paid for the cable service as part of a monthly maintenance fee. The termination provision in the agreement stated it would be subject to the conditions and regulations required under Chapter 718, Florida Statutes. Following turnover from the developer to the unit owners, the Association voted to terminate the agreement and sent written notice to Comcast in accordance with F.S. 718.302.

Section 718.302, Fla. Stat. (2002), provided in part:

(1) Any grant or reservation made by a declaration, lease, or other document, and any contract made by an association prior to assumption of control of the association by unit owners other than the developer, that provides for operation, maintenance, or management of a condominium association or property serving the unit owners of a condominium shall be fair and reasonable, and such grant, reservation, or contract may be canceled by unit owners other than the developer:
(a) … the cancellation shall be by concurrence of the owners of not less than 75 percent of the voting interests other than the voting interests owned by the developer….

After receiving notice of the termination, Comcast refused to open the distribution lock boxes. Ultimately, Comcast sued for declaratory and injunctive relief for breach of contract and trespass. Before a hearing was held, the Association hired another provider to rewire the building and provide services to all residential units. The trial court ruled in favor of the Association. On appeal, Comcast argued that F.S. 718.302 did not apply to Comcast’s services, because the contract was not one for operation, maintenance, or management of the condominium as required under the statutory language.

On appeal the Fourth District Court of Appeal found that the agreement explicitly required Comcast to operate and maintain the wires and lock boxes it had installed. The Court also noted that under F.S. 718.115(1)(d), the cost of cable television service obtained pursuant to a bulk rate contract is deemed a common expense. In light of the fact that the agreement provided for a cable television service, and that the cost was part of a monthly maintenance fee, and that Comcast was required to service and maintain the cable television, the Court concluded that the agreement was one for “operation, maintenance, or management” subject to F.S. 718.302 (NOTE: the 2021 version of this statute is substantially the same as the 2002 version).

So why does THIS CASE matter? The Florida Condominium Act provides various rights to condominium associations which become effective upon turnover of the association from developer-controlled to unit owner-controlled, including, but not limited to, the ability to terminate certain contracts. It is vital for associations which recently have undergone turnover to discuss the various rights which accrued on the date turnover with the association’s legal counsel.

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Six Requirements You Need to Get Your Property Management License in Florida

Six Requirements You Need to Get Your Property Management License in Florida

  • Posted: Dec 10, 2021
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Six Requirements You Need to Get Your Property Management License in Florida

To launch a career as a property manager in Florida, you must first obtain an appropriate license, but Florida does not offer a property management license. Rather than a property management license Florida requires you to obtain a real estate sales associate license to meet the Florida Real Estate Commission (FREC) requirements.

To become licensed in Florida, you need to first meet the requirements to enter an approved educational program. Once you’ve completed the program successfully, you apply for a license. After being electronically fingerprinted, you’ll need to take and pass the licensing exam. You do not need a license if you are only managing personally owned properties. Some rental properties, however, need a licensing by the Division of Hotels and Restaurants. If a property owner hires a salaried employee to manage the property no broker’s license is required, but if they are paid by commission or transactional basis they must have a license.

 


This course satisfies the 16-hour CAM pre-licensing requirements to become a community association manager in Florida.


Community Association Managers (CAMs) differ from property managers. CAMs must hold a valid Community Association Manager license. Obtaining this FREC license follows a similar process, but requires a different educational program. A CAM manages:

  • a ten or more unit association,

  • an association with greater than a $99,999 budget.

Check each applicant’s license status before hiring any person. Use the Florida Department of Business and Professional Regulation’s Licensee Search webpage to determine their licensing.

Property Management License in Florida

The first step in how to obtain a property management license in Florida is meeting the requirements to enter the higher education program. You need to already have graduated from high school or earned your general education diploma (GED). Also, you must be at least 18 years old. These minimums allow you to apply for entry to an approved real estate sales associate pre-licensing course.

Property Management License Florida Course

You will need to successfully complete the real estate sales associate pre-licensing course approved by the Florida Real Estate Commission. More than one possible course exists and the one you complete must contain a minimum of 63 hours of coursework. This is the introductory coursework to the larger licensing educational structure. It provides the foundation for other courses. You may complete the courses via correspondence, online or in person, depending on the options the school you choose offers.

Complete Your Application.

Complete and submit form DBPRRE1 which is the Florida application for a real estate sales associate license. You can fill it out online by visiting the Florida Department of Business & Professional Regulation website. Click the link for “Apply for a License.” You can complete it online or print it and submit it by fax or mail. The appropriate application fee must accompany it.

Submit Your Electronic Fingerprints

You must submit your electronic fingerprints via a FREC approved electronic fingerprinting site. You can obtain the sites closest to you by phoning 877-238-8232. You then visit them to submit your prints and pay the fingerprinting fee.

Ace Your Real Estate Sales Associates Exam

Sit for your Florida real estate sales associates exam. To qualify for a license, you must score at least a 75 percent on the test.

Receive Your License

Once you have passed the exam, you will receive your real estate license via postal mail. It typically takes seven to 10 business days to receive this in the mail.

Further Licensing Options

Beyond obtaining the sales associate license that functions effectively as a Florida property management license, you can also obtain higher licenses. You can obtain a broker’s license after 24 months as a real estate sales associate after completing a 72 classroom hours brokers course and a 60 hour post-licensing course which both must be FREC approved. For a license as a CAM, successfully complete a course of 18 hours education.

If you searched for how to get a property management license in Florida, you now know why you could not find it online. For property management, you need a sales associate license. To manage a community, you’ll need a CAM, also known as, a property association management license Florida requires. Florida property management license requirements differ depending on the size and/or budget of the community association.

While it is not a quick process, you can obtain your real estate license in about two years. That is the time it takes to complete about 60 hours of college coursework, assuming you complete 12 hour semesters. Some schools structure the courses in such a way that you must complete the classes in a specific order and cannot register for more than 12 hours per semester. After completion of the school program, passing your license exam is the only hurdle. You can enter a career in property management in Florida within two years.


Prolicense Florida is the leading online school for Licensed Community Association Managers (LCAM). We teach through interaction, which is proven to be a far more effective method of learning than attending classes or reading a boring book. Our content delivery platform, makes it easy for you to engage with the content providing a highest success rate at the State exam.

Licensing Partner for CAM Education: for SFPMA.COM and Clients all over the State of Florida. Learn more…..

 


 

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Community Association Collections 101: What Happens When An Owner Files For Bankruptcy? by Axela’s / Mitch Drimmer

Community Association Collections 101: What Happens When An Owner Files For Bankruptcy? by Axela’s / Mitch Drimmer

  • Posted: Dec 10, 2021
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It seems as if bankruptcy will be the next big subject, this article is a step by step process for community associations

Community Association Collections 101:

What Happens When An Owner Files For Bankruptcy?

Bankruptcy NoticeThe collections process isn’t a fun one, and depending on what causes delinquency, it can get complicated. A homeowner who falls behind on just their association payments is one thing, but someone who’s so behind on all of their financials that they have to declare bankruptcy is a very different story. We’re asked all the time about what happens when a condo or HOA has to deal with homeowner bankruptcy. If your association is dealing with a bankrupt homeowner who is not paying their post-bankruptcy amounts, there are decisions to be made and steps that can be taken. Let’s review what must happen and how the community association can best navigate this situation.

 

 

Two LedgersWhat Happens When Bankruptcy is Filed?

Filing for bankruptcy isn’t a quick process. When a person, known as the “petitioner,” files for bankruptcy, they must file a list of their creditors with the bankruptcy court (which is a federal court). The creditors will be noticed with a “bankruptcy notification” and will be given a time frame by which to respond, usually under two months. Government claims can be submitted up to six months after the petition date (it’s good to be the government.)

There is no requirement that the response (or proof of claim) from the creditor must be submitted to the court via an attorney, which is good for you–the less an association is required to spend on costly attorney fees, the better. This proof of claim can be submitted by the association directly, the management company, or by a collections partner like Axela. Just be sure that everything that is legally owed to the association is included on that proof of claim–this should include assessments, late fees, late interest, fines and violations, special assessments, and any other sundry items that have been charged to the property. Be sure to double-check the ledger because it is expensive to get a second bite at that apple if you find you want to amend your claim with the court.

From there, the bankruptcy court will hold a “341 meeting,” which is a meeting between the debtor and the creditors but it is not mandatory for any creditor to attend. Then comes the really complicated part.

 

Types of Bankruptcy

It is important to know what type of homeowner bankruptcy you are dealing with as this knowledge will direct your business decisions going forward. When a property goes bankrupt in a community association, the community needs to prepare two ledgers: a pre-petition ledger and a post-petition ledger. You cannot add the post-petition amounts to the bankruptcy claim because next month’s bills are not this month’s debts. Regardless of which kind of bankruptcy they have filed, the petitioner has an obligation to pay the post-petition amounts during the bankruptcy. If the delinquent owner is NOT paying their post-petition debts, the association needs to make a decision and take action immediately, and the type of bankruptcy will determine which steps to take

 

Chapter 7

Complete wipeoutChapter 7 bankruptcy, also known as “no-asset” bankruptcy, is a complete wipeout. This means that no money will be recovered from the pre-petition amounts.  A Chapter 7 bankruptcy case can take as little as six months to complete because there is no settlement to be made. Creditors can claim to the court that there are assets being hidden but, in most cases, it is all over fairly quickly. If the delinquent owner is not paying the post-petition amounts, then the association can wait until the case is discharged and then move forward with collections activity. If the owner has been paying their post-petition amounts, then the issue is resolved albeit the association has taken a hit.

 

 

Chapter 13

Wage Earner;s PlanChapter 13 bankruptcy is known as a “wage earners plan” and is a workout where the court will make a settlement and oversee it until the payment plan has been completed. This is when the association needs to make a business decision.

In a Chapter 13 bankruptcy case, the pre-petition debts will not be discharged for 3-5 years, and the petitioner remains in bankruptcy. If they are not paying the post-petition amounts, the association cannot submit the delinquency for collections or to an attorney for foreclosure. The only course of action is for the association to ask the court for an “injunctive stay of relief” which is essentially asking the court to allow the association to move forward with collections and or foreclosure efforts.

 

So What Needs to Be Done?

If a unit owner files for Chapter 13 bankruptcy and is not paying their current assessments, it is not a stretch to believe that most likely they will never pay. It is unfair that the association needs to wait three to five years until the pre-petition debts are paid, the delinquent owner is discharged from bankruptcy, and the association can finally move forward. As we mentioned above, if a delinquent owner has filed for Chapter 13 bankruptcy and is not paying their current assessments, the association should file with the court a motion for injunctive relief. During the gap period, section 1519(a) of the Bankruptcy Code states that a bankruptcy court has the power to grant provisional injunctive relief and certain other forms of relief where “relief is urgently needed to protect the assets of the debtor or the interests of the creditors.” Additionally, an order staying execution against the debtor can also be granted. If a property owner is not paying their assessments, then the case can be made that a stay order is required to protect the assets (the property).

 

How to Handle Homeowner Bankruptcy in Your Association

The same way you’d handle any other bankruptcy situation in your association: call a professional. Homeowner bankruptcy in your association can be managed and worked through, but it takes a lot of knowledge and a lot of time. Many times, when a management company or a board of directors is reviewing delinquencies, the units that are delinquent and are also in bankruptcy get glossed over. There is a feeling that once a delinquent owner files for bankruptcy, the association has no options other than to wait until the bankruptcy is discharged. This is not the case as there are options and every case is unique. Axela Technologies has the experience, knowledge, and experience to deal with all these contingencies. Call us today for a no-cost, no-obligation analysis, and review of your delinquencies.


About the Author

Mitch Drimmer is a respected thought leader in his field and has led numerous continuing education classes in collections, His articles have been published in key trade journals and newspapers, and he is a speaker at educational seminars.

As the President of Business Development for Axela Technologies, Drimmer works with community associations and their management companies to introduce innovative strategies to collect delinquent maintenance fees.

Throughout his career, Drimmer has worked with community associations to help them see their way through tough times, especially during the real estate crash. He is a passionate advocate for community associations and has participated in the legislative process over the years trying to bring fair and equitable legislation that serves community associations.

Drimmer earned a Bachelor of Arts in History from Hunter College in New York City, and has worked in the community association collections space since 2007.

 

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DEVELOPERS ARE ON THE PROWL

DEVELOPERS ARE ON THE PROWL

  • Posted: Dec 08, 2021
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DEVELOPERS ARE ON THE PROWL

by Condo craze @HOAs

I got a call this week from The Sun Sentinel.  They asked if I had heard about the prominent developer who approached the owners of the other Champlain Towers buildings that are still standing, offering to buy out all of their units.  I had not, but I’m not surprised in the least about it.  In fact, it’s going to be happening more and more.  Developers are going to be approaching lots of owners in condominiums that are distressed.

Why approach the owners in the remaining Champlain Towers condominiums?  I’m sure the developer is thinking that these owners may now have a hard time selling their condo units on the open market because there may not be many buyers interested in purchasing a unit in a condominium by that name.  The Champlain Towers will forever be remembered as the building that collapsed and where nearly a hundred innocent people died.  I think the developer is right.  It will be tough to sell your units in the remaining Champlain Towers condominiums.

The truth is……if that’s the case…and it is next to impossible to now sell your condo unit in these buildings, the developer can look like a knight in shining armor, if the price they offer is fair and reasonable.  It may very well make sense for the owners to seriously consider the developer’s offer.  At the remaining Champlain Towers buildings, the developer’s offer is contingent upon 95% of the owners agreeing to sell to the developer.  If less than 95% of the owners agree to sell, the deal is off the table.  That’s because if at least 5% of the owners vote against a plan of “termination” the developer’s plan to “terminate” the condominium, knock it down and build a more expensive one fails.  So, the developer needs to acquire at least 95% to ensure their plan succeeds.

We know that it’s about to get more expensive to live in a condominium because it looks like it will become more difficult to waive reserves and buildings will be undergoing more frequent inspections.  Repairs will be needed more than ever before which means money will be needed like never before.  When unit owners don’t have the money or don’t want to spend the money on a building that’s already old, rest assured that developers will be there ready to make an offer to everyone so that the property can be bought, knocked down, rebuilt and sold.

Over the last few years the law has made it more difficult to terminate a condominium.  As a result of the tragedy at The Champlain Towers I certainly expect the pendulum to swing back the other way.  Terminations will become easier.  Developers will use their eyes and airs searching for the most vulnerable properties, meaning the ones that will require the greatest cost to repair.  The laws regarding termination continue to evolve, but if I am a developer I may want to be cautious about buying units in a condominium that requires 100% of the owners to agree to termination and that does not have Kaufman language or “as amended from time to time” language.  In these types of condominiums, one owner who refuses to sell may wind up screwing up the developer’s grand plans.

 

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You don’t get to take a holiday break from condo rules.

You don’t get to take a holiday break from condo rules.

  • Posted: Dec 05, 2021
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If you’re one of the 62 million Americans living in condo and homeowners associations (HOAs), you don’t get to take a holiday break from condo rules.

Humbug, you say? Well…

“A hallmark of a shared ownership community is that you give up some of your rights for the good of the community. If there are restrictions involving holiday decorations, including lights and signage, you’re generally bound by them

Option 1: Nothing may happen if the HOA rules aren’t enforced.
Option 2: You might get a letter asking you to take down your decor.
Option 3: You might get fined for breaking condo rules.

 

Be safe, Ask your board for rules they may have for decorations on the Grounds….

Constructive ways to balance your need to deck the halls with condo rules that ban decorations:

  • Talk to your neighbors.
  • If it’s your first holiday in your new home, check your association’s rules and regulations to find out what’s really allowed.
  • Condos that ban lights and signage most of the year may be lenient about decorations during the holiday season. “But do understand these rules and regulations are enforceable by boards of corporations that are created contractually,”

Take your holiday case to the board. Call the president and ask if you can speak at the next meeting. Show up with a short written proposal to modify the HOA rules to allow specific kinds of decorations, like lights on balconies or door wreaths.

Check state laws on condo rules. Got no satisfaction from your trip to the condo board? You might be able to appeal to a higher authority. Some states have a large body of home owners association laws that may override HOA rules in certain instances, while other states have few home owners association laws.

 

 

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Corey Parshall is the founder of Parshall Tree Care Experts, a full-service tree company offering reinvented solutions to outperform and challenge the industry

Corey Parshall is the founder of Parshall Tree Care Experts, a full-service tree company offering reinvented solutions to outperform and challenge the industry

  • Posted: Dec 03, 2021
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Corey Parshall is the founder of Parshall Tree Care Experts, a full-service tree company offering reinvented solutions to outperform and challenge the industry.

They deliver services to residential, commercial, municipal, and utility clients in Michigan and Florida! With a desire to break stereotypes and bring the tree service industry into the 21st century, Corey designed a business with unparalleled service.

Entering the market, Corey saw opportunity in the outdated practices that ensnare other companies. He understood the pitfalls in the tree service industry and decided to do his part to change it. He saw under-serviced clients and poor service in general. Using his entrepreneurial spirit, he started his own company to address these problems. Leveraging changes in technology, Parshall Tree Care aims to challenge themselves with creative ways of thinking, always looking to push the industry further.

Corey’s biggest challenges are the unknowns. In the early stages of running his business he experienced a lot of trial and error, discovering this was the most expensive way to learn and grow. Rather than bleeding money, Corey started investing in resources to grow his team instead. He found mentors that could help with problem-solving and educate the team. Before he knew it he had a clear roadmap that prevented him from constantly having to relearn everything.

 

With a mind focused on the positive, Corey believes your goals are within reach. A negative outlook can erode your confidence in taking calculated risks, while a positive outlook brings opportunity. Corey has noticed that when he keeps a positive mindset relationships line up, doors open, and he is generally luckier as an entrepreneur. By overcoming his biggest obstacle of thinking small, he found great success by intentionally setting unobtainable goals just to see what he and his team can achieve. Corey pays attention to fears that creep up when goal-setting. To him, fear is a communicator that action is needed to reach the desired opportunity.

For anyone interested in starting their own business, Corey recommends setting outrageous goals. He recommends anything considered to be a “good goal” should be multiplied by 1000 because you will probably underestimate rather than overestimate. Low expectations lead to boredom and if your business is boring you’re more likely to give up. Once you have a plan set, Corey suggests finding mentors, even if you have to pay for them. Learning from the experience of others saves you time and money in the long run.

Success, to Corey, is building a team that includes his family. In doing so, they find freedom from being tied down by that which is out of their control. He finds financial freedom knowing he and his family enjoy a better quality of life, and he has a legacy to share with generations to come. He loves sharing his success with his team as they experience the same freedom. At the end of the day, Corey’s dream is to see the entire tree service industry revolutionized—that they can leave a generational impact and improve an outdated industry.

Corey is so grateful to his staff for everything they do to help carry out the company’s mission, and to his clients who trust him to provide his service. He knows he can’t make a difference in the tree industry without either piece missing. This company isn’t about Corey Parshall, but the Parshall Tree Care Experts revolution. Parshall Tree TV, a free educational platform, is the latest division of the company.

 

Parshall Tree Care Experts

also have plans to grow their new offices in Ohio and Indiana, then expand toward the eastern US to Florida. But Corey’s ultimate goal is to be known as the industry leader in the tree service community.

Corey Parshall
Founder
Parshall Tree Care Experts
corey@parshalltreecare.com
877-250-2060
http://parshalltreecare.com

 

 

 

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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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Royale Management Services, Inc., call today for a free quote and proposal!

Royale Management Services, Inc., call today for a free quote and proposal!

  • Posted: Dec 02, 2021
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CONDOMINIUM, COOP & HOME OWNERS ASSOCIATION MANAGEMENT

Royale Management Services, Inc. is a full-service, Condo Association Management (CAM) licensed, residential property management company, specializing in management, consulting and accounting for Condominium Associations and Home Owners Associations in South Florida: Broward, Dade & Palm Beach County.

 

We provide the highest quality, most cost effective management services your community and homeowners will find anywhere.

Accounting & Bookkeeping

Financial Management

Property Management

Web Services

Royale Management Services, Inc., exists to meet the needs of association owners, board members, and officers by providing, with the highest quality and integrity, association management, accounting and financial services, while controlling costs and making each community a better place for every owner.

We offer unprecedented access and transparency to the owners, board members and officers of each community we serve. Association records are open and available 24 hours a day, 365 days a year for inspection via our secure web portal. These records include all check, invoices, contracts, receivables, deposits, payments and correspondence.  Our revenue comes from management fees and disclosed charges included in our management agreement. We do not provide or perform services through related companies or divisions that add additional margins and profits to our bottom line. We maintain no preferred contractor lists based on any form of revenue sharing or other fees and associations and their boards are free to use existing contractors or others outside service.

We aim for and reach superior, measurable standards of quality with every service we provide. We serve only local associations (Broward County) where owners, board members, and officers can have access to all our professional staff and where we can be sure that all activities are supervised by our senior staff.

Our clients will regard us not only as a national leader in the world of association management and financial problem solving but also as a trusted friend and ally; as a partner in the pursuit of their community goals and objectives.

The Royale Management Services name will be synonymous with superior service-superior not only in quality and quantity but also in spirit. Mere adequacy of quality and quantity of service is not sufficient to satisfy the commitment we have made to our clients. In fact, it’s the spirit in which we deliver our service that makes us unique. In a large part, it is the spirit which accounts for the Royale Management Services difference.

 

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There is plenty of time to let the community members know what the new monthly assessments will be for the coming year.

There is plenty of time to let the community members know what the new monthly assessments will be for the coming year.

  • Posted: Dec 02, 2021
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Budgets: Boards How are you doing?

Most community associations have their budget meeting in the month of November for the upcoming year.  By doing it in November there is plenty of time to print new coupon books and let the community members know what the new monthly assessments will be for the coming year.

In terms of notice, in a condominium the budget must be sent to the owners at least 14 days before the budget meeting.  In an HOA, The association shall provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member.

Don’t forget that in a condominium, in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.

Condo boards need to be well aware of the reserve requirement.  To be clear, the Board MUST send out a budget that includes fully funded reserves.  That is all they are required to do.  However, if they want to, they can give the owners the opportunity to vote for an alternative budget such as a budget that contains no reserves or partially funded reserves.  Remember that if a majority of a quorum of owners does not vote for a budget that does not contain full reserves, fully funded reserves shall go into effect.

In a post Champlain Towers world, I think things may be a little different this year.  I think lots of Board members will want to have fully funded reserves in their budget.  They don’t want to be short millions of dollars when the time comes, and it will, for millions of dollars in repairs.

Delinquencies are starting to pick up as well.  So, make sure you have a line item in your budget for “bad debt.”   For example, if your assessments are $6,000.00 per year and you’re pretty sure that 5 owners won’t pay  a dime, you should put $30,000.00 as an line item in your budget for bad debt.  That way you collect enough money to pay the bills.

Keep in mind that electricity prices are expected to rise 18%.  Also remember that some of your long term contracts may have clauses requiring automatic rate increases every single year.  F I still get the same question all the time…who passes the budget; the board or the unit owners? The answer is…the board and only the board.  Food prices are going up, the cost of materials are going up, electricity is going up, the cost of labor is going up, and worst of all, insurance rates for condominiums are simply skyrocketing, with some associations complaining that their rates have tripled.  So, all this means in no uncertain terms, that condo assessments are about to go up as well.  It also seems pretty clear that it will become extremely difficult if not impossible to waive reserves starting next year.  Yes, it’s about to get a lot more expensive to live in a condominium, especially if you were kicking the can down the road and always waiving reserves.  I don’t envy condo boards at their next budget meetings where they will be forced to tell the members of their community that their monthly assessments are about to go up, in fact way up.  Buckle up everyone in a condo, you’re in for a bumpy ride going forward.

 

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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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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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