HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 979 Estoppel Certificates
SPONSOR(S): Judiciary Committee, Civil Justice Subcommittee, Persons-Mulicka and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 278
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Judiciary Committee 17 Y, 0 N, As CS Mawn Kramer
SUMMARY ANALYSIS
The Florida Department of Business and Professional Regulation (“DBPR”) regulates certain community
associations in the state, including condominium (“condo”) associations; cooperative (“co-op”) associations;
and, to a limited degree, homeowners' associations (“HOAs”). A condo association is a form of real property
ownership created under ch. 718, F.S., in which persons own condo units along with an undivided right of
access to the condo’s common elements. A co-op association is a form of property ownership created under
ch. 719, F.S., in which the real property is owned by the association and individual units are leased to the
residents, who own shares in the association. Meanwhile, an HOA, created under ch. 720, F.S. is a form of
property ownership in which voting membership is made up of parcel owners and membership is a mandatory
condition of parcel ownership.
When a person intends to buy a unit in a condo or co-op, or a parcel in an HOA, an “estoppel certificate” helps
to facilitate the closing of the sale by giving the parties a summary of the fees, fines, dues, and assessments
which the seller may owe to the community association. Florida law gives an association ten business days
after receiving a written or electronic request for an estoppel certificate from a unit or parcel owner to issue the
estoppel certificate, which certificate must contain specified information. Any board member, authorized agent,
or authorized representative of the association may complete the estoppel certificate, and such certificate must
be provided by hand delivery, regular mail, or e-mail to the requestor on the date of issuance.
Fees for estoppel certificate preparation and delivery are capped in Florida law and adjusted every five years in
an amount equal to the total of the annual increases for that five-year period in the Consumer Price Index
(“CPI”). Pursuant to the latest CPI adjustment, the fees currently may not exceed, for one unit or parcel:
 $299 for certificate preparation and delivery if, on the date of the certificate’s issuance, the seller does
not owe any money to the association;
 A $179 additional fee if the seller owes money to the association for the unit or parcel; and
 A $119 additional fee if the certificate is requested on an expedited basis.
CS/CS/HB 979 limits an association’s authority to charge estoppel certificate fees and modifies provisions
relating to the timing of fee payment and the renewal of an association’s fee authority.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/21/2024
 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Community Associations
The Florida Division of Condominiums, Timeshares and Mobile Homes (“Division”), within the
Department of Business and Professional Regulation (“DBPR”), provides consumer protection for
Florida residents living in certain regulated communities through board of director educational
programs, complaint resolution, alternative dispute resolution, and developer disclosure.1 These
regulated communities include:
 Condominium associations;
 Cooperative associations; and
 Homeowners' associations (limited to the arbitration of election and recall disputes).2
Condominiums
A condominium (“condo”) is a form of real property ownership created under ch. 718, F.S.; specifically,
persons own condo units along with an undivided right of access to the condo’s common elements. A
condo is created by recording a declaration of condominium, governing the relationship between condo
unit owners and the condo association, in the public records of the county where the condo is located.
All unit owners are members of the condo association, and the association is responsible for common
elements operation and maintenance and may impose assessments against a member which, if
unpaid, may become a lien on the member’s unit.
Cooperatives
A cooperative (“co-op”) is a form of property ownership created under ch. 719, F.S., in which the real
property is owned by the co-op association and individual units are leased to the residents, who own
shares in the association. The lease payment amount is the pro-rata share of the co-op’s operational
expenses, and the association is authorized to impose assessments against any member of the co-op,
which, if unpaid, may become a lien on the member’s unit. Co-ops operate similarly to condos, and the
laws regulating co-ops are largely identical to those regulating condos.
Homeowners’ Associations
A homeowners’ association (“HOA”) is a form of real property ownership, created under ch. 720, F.S.,
in which voting membership is made up of parcel owners, membership is a mandatory condition of
parcel ownership, and the association is authorized to impose assessments against any member
which, if unpaid, may become a lien on the member’s parcel. An HOA’s powers and duties include
those powers and duties provided by law and in the governing documents. Florida law sets procedures
and minimum requirements for HOA operation and provides for a mandatory binding arbitration
program, administered by the Division, for certain election and recall disputes; but no state agency
directly regulates HOAs.
Community Association Board of Directors
Each condo, co-op, and HOA (“community association”) is governed by a board of directors (“board”)
elected by the association’s members or appointed by a developer prior to turnover to the association.
The board has those duties described in statute and in the association’s governing documents,
1 See generally chapters 718, 719, and 720, F.S., regulating condos, co-ops, and HOAs, respectively.
2 Id.
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 including association administration, policy development, and property maintenance. 3 A board director
also has a fiduciary responsibility to the association’s members and must use the highest degree of
good faith in placing the interests of the members above his or her own personal interests. 4
To ensure that a director is able to faithfully and competently exercise his or her duties, within 90 days
of being elected or appointed to the board, each newly elected or appointed director must:
 Certify in writing that he or she has read the association’s governing documents; will work to
uphold the governing documents to the best of his or her ability; and will faithfully discharge his
or her fiduciary responsibility to the association’s members; or
 Submit a certificate showing he or she satisfactorily completed the educational curriculum
administered by a Division-approved5 education provider within one year before or 90 days after
his or her election or appointment date.6
A director who fails to comply with such requirements is suspended from serving on the board until he
or she complies, and the board may temporarily fill the vacancy during the suspension period. 7
However, the written certification or educational certificate is valid and does not have to be resubmitted
if the director serves on the board without interruption.8
Community Association Managers
A community association manager (“CAM”) is a person hired to manage a community association with
more than ten units or parcels or with an annual budget exceeding $100,000. 9 The community
association is not required to hire a CAM, but where it does so, the CAM is generally responsible for
the association’s day-to-day operation and management, including the calculation and preparation of
estoppel certificates.10
Estoppel Certificates
Where a person intends to buy a unit in a condo or co-op, or a parcel in an HOA, an “estoppel
certificate” helps to facilitate the closing of the sale by giving the parties thereto a summary of the fees,
fines, dues, and assessments which the seller may owe to the community association. 11 In most
instances, the seller does not have any outstanding monetary obligations to the association; however,
where the seller does owe money to the association, the amount owed must generally be collected
from the seller and applied at closing.12 Otherwise, under Florida law, the buyer of the unit or parcel
becomes jointly and severally liable with the previous owner for any money due to the association at
the time of the sale.13
Estoppel Certificate Completion
Florida law gives an association ten business days after receiving a written or electronic request for an
estoppel certificate from a unit or parcel owner, a unit or parcel mortgagee, or the designee thereof, to
3 See generally chs. 718, 719, and 720, F.S.; Florida DBPR, FAQs, http://www.myfloridalicense.com/DBPR/condominiums-and-
cooperatives/faqs/#1492784365590-e9ec1083-2ca1 (last visited Feb. 21, 2024).
4
Id.
5 A Division-approved provider must cover specified topics in its education program, which may include budgets; reserves; elections;
financial reporting; association operations; dispute resolution; and records maintenance. For a list of Division -approved education
providers, see http://www.myfloridalicense.com/db pr/lsc/documents/CondoCOOPListofApprovedProviders2015.pdf (last visited Feb. 21,
2024). 61B-19.001 and 61B-75.0051, F.A.C.
6
This requirement does not apply to the board of directors for a commercial condominium. Ss. 718.112(2)(d), 719.106(1)(d), and
720.3033(1)(a)-(c), F.S.
7 Id.
8 Id.
9 DBPR, Community Association Managers, http://www.myfloridalicense.com/dbpr/os/documents/CAMBrochure.pdf (last visited Feb.
21, 2024).
10 Id.; s. 468.431, F.S.
11 Florida Realtors, Estoppel, https://www.floridarealtors.org/advocacy/legislative-priorities/business-
issues/estoppel#:~:text=estoppel%20letters%2Fcertificates.-
,An%20estoppel%20letter%2Fcertificate%20is%20used%20to%20facilitate%20a%20closing,assessments%20owed%20to%20the%20
association (last visited Feb. 21, 2024).
12 Id.
13 Id.
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 issue the estoppel certificate.14 Any board member, authorized agent, or authorized representative of
the association may complete the estoppel certificate, and such certificate must be provided by hand
delivery, regular mail, or e-mail to the requestor on the date of issuance.15
An estoppel certificate that is hand-delivered or sent electronically has a 30-day effective period, while
a certificate sent by regular mail has a 35-day effective period.16 If additional information or a mistake
becomes known to the association within the effective period, an amended estoppel certificate may be
delivered and becomes effective if a sale of the unit or parcel has not closed during the effective
period.17 However, an association waives the right to collect any moneys owed in excess of the
amounts listed in the estoppel certificate from any person who in good faith relies upon the certificate,
and from such person’s successors and assigns. 18
Required Estoppel Certificate Information
An estoppel certificate must contain the following information:
 The date of issuance;
 The name of the unit or parcel owner as reflected in the association’s books and records;
 The unit or parcel designation and address;
 The parking or garage space number, if applicable, as reflected in the association’s books and
records;
 If the seller owes money to the association and his or her account has been turned over to an
attorney for collection, the attorney’s name and contact information;
 The amount of the fee charged for the certificate’s preparation and delivery; and
 The requestor’s name.19
In addition to the information specified above, an estoppel certificate must disclose:
 The amount of the regular periodic assessment levied against the unit, and the frequency of its
assessment;
 The date through which the regular periodic assessment is paid;
 The date the next installment of the regular period assessment is due, and the amount thereof;
 An itemized list of all assessments, special assessments, and other moneys owed on the date
of the certificate’s issuance by the unit or parcel owner for the specific unit or parcel at issue;
 An itemized list of any additional assessments, special assessments, and other moneys that are
scheduled to become due for each day after the certificate’s issuance for the certificate’s
effective period;
 Whether there is a capital contribution fee, resale fee, transfer fee, or other fee due, and, if so,
the type and amount of such fee;
 Whether there is any open violation of rule or regulation noticed to the unit or parcel owner in
the association’s official records;
 Whether the association’s rules and regulations require the board’s approval to transfer the unit
or parcel and, if so, whether the board has approved the transfer;
 Whether the association’s members have a right of first refusal and, if so, whether the members
exercised that right;
 A list of, and contact information for, all other associations of which the unit or parcel is a
member;
 Contact information for all insurance the association maintains;
 The signature of an officer or authorized agent of the association; and
 Any additional information the association chooses to provide. 20
14 Ss. 718.116, 719.108, and 720.30851, F.S.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
20 Id.
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 Preparation and Delivery Fees
In 2017, the Legislature capped the maximum amount that an association, or the management
company thereof, may charge for estoppel certificate preparation and delivery and required that the
statutory fee caps be adjusted every five years in an amount equal to the total of the annual increases
for that five-year period in the Consumer Price Index (“CPI”). 21 DBPR must periodically calculate the
fees, rounded to the nearest dollar, and publish the amounts, as adjusted, on its website. 22
Pursuant to the latest CPI adjustment, which occurred in 2022, estoppel certificate fees which an
association may charge may not exceed, for one unit or parcel:
 $299 for certificate preparation and delivery if, on the date of the certificate’s issuance, the seller
did not owe any money to the association;
 A $179 additional fee if the seller owes money to the association for the unit or parcel at issue;
and
 A $119 additional fee if the certificate is requested on an expedited basis.23
Further, where an association receives requests for estoppel certificates for multiple units or parcels
owned by the same person, and such person owes no money to the association, the total certificate
preparation and delivery fee which the association may charge may not exceed, in the aggregate:
 $896 for 25 or fewer units or parcels;
 $1,194 for 26 to 50 units or parcels;
 $1,791 for 51 to 100 units or parcels; or
 $2,985 for more than 100 units or parcels.24
However, the association’s authority to charge estoppel certificate preparation and delivery fees must
be established by a written resolution adopted by the board or provided by a written management,
bookkeeping, or maintenance contract.25 Moreover, where the association receives a request for an
estoppel certificate and fails to deliver the certificate within ten business days, the association is
prohibited from charging a fee for the certificate’s preparation and delivery. 26
Payment of Fees Where Closing Does Not Occur
If an estoppel certificate is requested in conjunction with the sale of a unit or parcel but closing does not
occur, and the payor (typically a title agent) submits a written refund request along with reasonable
documentation that the sale did not occur no later than 30 days after the closing date for which the
certificate was sought, the association must refund the fee to the payor within 30 days after receiving
the refund request.27 However, the refund is the obligation of the unit or parcel owner; thus, Florida law
a