The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/CS/SB 756
INTRODUCER: Rules Committee; Judiciary Committee; and Senator Perry
SUBJECT: Timeshare Properties
DATE: February 8, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Favorable
2. Bond Cibula JU Fav/CS
3. Oxamendi Twogood RC Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 756 authorizes the board of administration for a condominium or cooperative
association operating a timeshare to delete facilities without the approval of the members of the
association if the deletion is approved by a two-thirds vote of the board of administration and the
deletion is consistent with the fiduciary duties of the managing entity to the purchasers of the
timeshare plan set forth in s. 721.13(2), F.S. However, the bill maintains the requirement in
current law that, if the timeshare condominium or timeshare cooperative contains any residential
units that are not subject to the timeshare plan, the board of administration for the condominium
or cooperative must obtain the approval of a majority of the owners of such residential units
before it can make any material alterations or substantial additions to the accommodations or
facilities of such timeshare condominium or timeshare cooperative.
The bill also provides that the board of administration for a condominium or cooperative may
make material alterations or substantial additions to the accommodations or facilities of a
timeshare condominium or timeshare cooperative without the approval of the owners’
association if the board of administration of any owners’ association operates a timeshare plan
including a timeshare condominium. Current law references the board’s operation of a timeshare
condominium, not the board’s operation of a timeshare plan including a timeshare condominium.
The bill provides that the managing entity of a timeshare project has all of the rights and
remedies of an operator of any public lodging establishment or public food service establishment
as set forth in several provisions in ch. 509, F.S., which authorizes the operator of public lodging
BILL: CS/CS/SB 756 Page 2
establishments or public food service establishments to remove a person from their
establishments, including the right to have a law enforcement officer remove a person from the
establishments, if the person engages in certain activities, including the possession and use of
controlled substances and engaging in disorderly conduct.
The bill requires the managing entity of a timeshare condominium or timeshare cooperative to
provide the assessment certificate required under s. 721.15(7), F.S., in lieu of the estoppel
certificate required by s. 718.116(8), F.S., or s. 719.108(6), F.S., relating to condominium and
cooperative associations, respectively. The assessment certificate states the amount of moneys
owed or due within 90 days to the managing entity on a consumer resale of a timeshare interest.
The bill also changes the appointing authority for appointment of a commissioner of deeds from
the Governor to the Secretary of State. A commissioner of deeds is a person appointed to act in a
foreign state or country to acknowledge that a person executing a real property instrument is the
person named in the instrument. A real property instrument must be acknowledged as a condition
of recording.
The bill takes effect July 1, 2024.
II. Present Situation:
A timeshare interest is a form of ownership of real and personal property.1 In a timeshare,
multiple parties hold the right to use a condominium unit or a cooperative unit. Each owner of a
timeshare interest is allotted a period of time (typically one week) during which the owner has
the exclusive right to use the property.
The Florida Vacation Plan and Timesharing Act, ch. 721, F.S., establishes requirements for the
creation, sale, exchange, promotion, and operation of timeshare plans, including requirements for
full and fair disclosure to purchasers and prospective purchasers.2 Chapter 721, F.S., applies to
all timeshare plans consisting of more than seven timeshare periods over a period of at least 3
years when the accommodations and facilities are located or offered within this state.3 Part I of
ch. 721, F.S., relates to vacation plans and timesharing, and part II of ch. 721, F.S., relates to
multisite vacation and timeshare plans that are also known as vacation clubs.
The Division of Florida Condominiums, Timeshares, and Mobile Homes (division) of the
Department of Business and Professional Regulation (DBPR) administers ch. 721, F.S.
Definitions
The term “timeshare plan” means any arrangement, plan, scheme, or similar device, other than
an exchange program, whether by membership, agreement, tenancy in common, sale, lease,
deed, rental agreement, license, or right-to-use agreement or by any other means, where a
purchaser, for consideration, receives ownership rights in or a right to use accommodations and
facilities, if any, for a period of time less than a full year during any given year, but not
1
See s. 721.05(36), F.S.
2
Section 721.02(2) and (3), F.S.
3
Section 721.03, F.S.
BILL: CS/CS/SB 756 Page 3
necessarily for consecutive years.4 The term includes both personal property timeshare and real
property timeshare plans.5
A “timeshare unit” is an accommodation of a timeshare plan which is divided into timeshare
periods or a condominium unit in which timeshare estates have been created.6
A “timeshare estate” is a right to occupy a timeshare unit, coupled with a freehold estate or an
estate for years with a future interest in a timeshare property or a specified portion thereof.7 The
term also includes an interest in a condominium unit, a cooperative unit, or a trust. Whether the
term includes both direct and indirect interests in trusts is not specified. An example of an
indirect interest in a trust is the interest of a trust beneficiary’s spouse or other dependent.
A “timeshare license” is the right to occupy a timeshare unit, which right is not a personal
property timeshare interest or a timeshare estate.8 A “timeshare interest” is a timeshare estate, a
personal property timeshare interest, or a timeshare license.9
Managing Entity
Section 721.13(1), F.S., requires the developer to provide a managing entity for each timeshare
plan. The managing entity operates or maintains the timeshare plan.10 Section 721.13, F.S.,
provides the duties of a managing entity. The managing entity may be the developer, a separate
manager or management firm, or an owners’ association.11
4
Section 721.05(39), F.S.
5
Section 721.05(39)(a), F.S., defines a “personal property timeshare plan,” as a timeshare plan in which the accommodations
are comprised of personal property that is not permanently affixed to real property. Section 721.05(39)(b), F.S., defines a
“real property timeshare plan,” as a timeshare plan in which the accommodations of the timeshare plan are comprised of or
permanently affixed to real property.
6
See ss. 721.05(41) and 718.103(26), F.S.
7
Section 721.05(34), F.S.
8
Section 721.05(37), F.S.
9
Section 721.05(36), F.S.
10
See s. 721.05(22), F.S., defining the term “managing entity.”
11
Section 721.13(1)(a), F.S.
BILL: CS/CS/SB 756 Page 4
Material Alterations or Substantial Additions to Accommodations or Facilities
Section 721.13(8), F.S., provides that, notwithstanding anything to the contrary in s. 718.110,
F.S.,12 s. 718.113, F.S.,13 s. 718.114, F.S.,14 or s. 719.1055, F.S.,15 the board of administration of
any owners’ association that operates a timeshare condominium pursuant to s. 718.111, F.S., or a
timeshare cooperative pursuant to s. 719.104, F.S., has the power to make material alterations or
substantial additions to the accommodations or facilities of such timeshare condominium or
timeshare cooperative without the approval of the owners’ association. Current law does not
reference the deletion of accommodations or facilities.
Section 721.13(8), F.S., also provides that, if the timeshare condominium or timeshare
cooperative contains any residential units that are not subject to the timeshare plan, the board of
administration for the condominium or cooperative must obtain the approval of a majority of the
owners of such residential units before it can make any material alterations or substantial
additions to the accommodations or facilities of such timeshare condominium or timeshare
cooperative. However, unless otherwise provided in the timeshare instrument as originally
recorded, an amendment may not change the configuration or size of any accommodation in any
material fashion, or change the proportion or percentage by which a member of the owners’
association shares the common expenses, unless the record owners of the affected units or
timeshare interests and all record owners of liens on the affected units or timeshare interests join
in the execution of the amendment.
Assessment Certificates
Condominiums and Cooperatives
An assessment is a unit or parcel owner’s share of the funds required for the payment of the
association’s common expenses.16 A special assessment is any assessment levied against a unit
or parcel owner other than the assessment adopted in the annual budget.17
12
Section 718.110, F.S., provides for the amending of a declaration of condominium and, in part, prohibits any amendment
that materially alters or substantially adds to the condominium property, unless all recorded unit owners and all record
owners of liens join in and approve the execution of the amendment.
13
Section 718.113., F.S., sets forth the responsibility of a condominium association to maintain the common elements of the
condominium and, in relevant part, prohibits any material alteration or substantial additions to the common elements or to
real property which is association property, except in a manner provided in the declaration as originally recorded or as
amended under the procedures provided in the declaration. However, if the declaration as originally recorded or as amended
does not specify the procedure for approval of material alterations or substantial additions, 75 percent of the total voting
interests of the association must approve the alterations or additions before the material alterations or substantial additions are
commenced.
14
Section 718.114, F.S., authorizes condominium associations, with specified conditions, to “enter into agreements to acquire
leaseholds, memberships, and other possessory or use interests in lands or facilities such as country clubs, golf courses,
marinas, and other recreational facilities, regardless of whether the lands or facilities are contiguous to the lands of the
condominium, if such lands and facilities are intended to provide enjoyment, recreation, or other use or benefit to the unit
owners.”
15
Section 719.1055, F.S., provides for the amendment of cooperative documents and, in part, prohibits any amendment that
materially alters or substantially adds to the cooperative property, unless all recorded unit owners and all record owners of
liens join in and approve the execution of the amendment.
16
Sections 718.103(1) and 719.103(1), F.S., relating to condominium and cooperative associations, respectively.
17
Sections 718.103(24) and 719.103(23), F.S., relating to condominium and cooperative associations, respectively.
BILL: CS/CS/SB 756 Page 5
Assessments that are unpaid may become a lien on the unit or parcel.18 An owner is jointly and
severally liable with the previous owner for all unpaid assessments that come due up to the time
of transfer of title.19 This liability is without prejudice to an owner’s right to recover from the
previous owner the amounts paid that were assessed during the time that the previous owner
owned the property.20
To protect against undisclosed financial obligations and to obtain title to the property free of any
lien or encumbrance in favor of the association, purchasers may request that the seller provide an
estoppel certificate, also known as an assessment certificate, from the condominium or
cooperative association. An estoppel certificate certifies the amount of any total debt owed to the
association for unpaid monetary obligations by a unit or parcel owner as of a specified date.21
Within 10 days after receiving a written request for an estoppel certificate, the association must
provide an estoppel certificate signed by an officer or agent of the association stating all
assessments and other moneys owed to the association by the owner with respect to the unit or
parcel. In addition to specifying the amount of any debt owed to the association, an estoppel
certificate must also include specific information about the association and the property to be
purchased, including the amount of any regular periodic assessments or other fees.22
Timeshares
A purchaser timeshare estate or timeshare license is personally liable for all assessments for
common expenses which come due while the purchaser is the owner of such interest.23 A
successor in interest of timeshare estate or timeshare license is also jointly and severally liable
with her or his predecessor in interest for all unpaid assessments against such predecessor up to
the time of transfer of the timeshare interest to such successor without prejudice to any right a
successor in interest may have to recover from her or his predecessor in interest any amounts
assessed against such predecessor and paid by such successor.24
The managing entity of a timeshare plan must provide an assessment certificate within 30 days
after receiving a written request from a timeshare interest owner, an agent designated in writing
by the timeshare interest owner, or a person providing resale transfer services for a consumer
timeshare reseller. The assessment certificate must be signed by an officer or agent of the
managing entity, to the person requesting the certificate, state the amount of any assessment,
transfer fee, or other moneys currently owed to the managing entity, and of any assessment,
transfer fee, or other moneys approved by the managing entity that will be due within the next 90
days, with respect to the designated consumer resale timeshare interest, as well as any
information contained in the books and records of the timeshare plan regarding the legal
description and use plan related to the designated consumer resale timeshare interest. 25
18
Sections 718.116(5) and 719.108(4), F.S., relating to condominium and cooperative associations, respectively.
19
Sections 718.116(1)(a) and 719.108(1), F.S., relating to condominium and cooperative associations, respectively.
20
Id. The term “without prejudice” means “without loss of any rights; in a way that does not harm or cancel the legal rights
or privileges of a party.” BLACK’S LAW DICTIONARY 770 (10th ed. 2014).
21
Sections 718.116(8) and 719.108(6), F.S., relating to condominium and cooperative associations, respectively.
22
Id.
23
Section 721.15(7), F.S.
24
Id.
25
Id.
BILL: CS/CS/SB 756 Page 6
The managing entity may charge a fee not to exceed $150 for the preparation and delivery of the
certificate, and the amount of the fee must be included on the certificate.26
Public Lodging Establishments and Public Food Service Establishments
The Division of Hotels and Restaurants (division) within the Department of Business and
Professional Regulation (DBPR) is charged with enforcing the provisions of ch. 509, F.S.,
relating to the regulation of public lodging establishments and public food service establishments
to protect public health, safety, and welfare.
Section 509.242(1), F.S., classifies public lodging establishments as a hotel, motel, nontransient
apartment, transient apartment, bed and breakfast inn, timeshare project, or vacation rental.27
Section 509.242(1)(g), F.S., defines the term “timeshare project” to mean “a timeshare property,
as defined in [ch. 721, F.S.,] that is located in this state and that is also a transient public lodging
establishment.”
The term