F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1249 2024
1 A bill to be entitled
2 An act relating to condominiums within a portion of a
3 building or within a multiple parcel building;
4 amending s. 718.103, F.S.; revising the definition of
5 "condominium property"; amending s. 718.202, F.S.;
6 conforming provisions to changes made by the act;
7 creating s. 718.407, F.S.; providing that a
8 condominium may be created within a portion of a
9 building or within a multiple parcel building;
10 providing for the common elements of such condominium;
11 providing requirements for the declaration of
12 condominium and other recorded instruments;
13 authorizing an association to inspect and copy certain
14 books and records and to receive an annual budget;
15 requiring a specified statement be included in a
16 contract for sale of a unit of the condominium;
17 requiring a seller of a unit of the condominium to
18 provide a specified disclosure summary to a purchaser;
19 providing that a multiple parcel building is not a
20 subdivision of land if the land is not subdivided;
21 amending s. 718.503, F.S.; requiring certain persons
22 to provide specified disclosures to purchasers under
23 certain circumstances; providing construction;
24 providing an effective date.
25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1249 2024
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Subsection (14) of section 718.103, Florida
29 Statutes, is amended to read:
30 718.103 Definitions.—As used in this chapter, the term:
31 (14) "Condominium property" means the lands and,
32 leaseholds, and all improvements thereon, and personal property
33 that are subjected to condominium ownership, whether or not
34 contiguous, and all improvements thereon and all easements and
35 rights appurtenant thereto, whether or not contiguous, and
36 personal property, if any, which is intended for use in
37 connection with the condominium and which are subjected to
38 condominium ownership.
39 Section 2. Subsection (3) of section 718.202, Florida
40 Statutes, is amended to read:
41 718.202 Sales or reservation deposits prior to closing. —
42 (3) If the contract for sale of the condominium unit so
43 provides, the developer may withdraw escrow funds in excess of
44 10 percent of the purchase price from the special account
45 required by subsection (2) when the construction of improvements
46 has begun. He or she may use the funds for the actual costs
47 incurred by the developer in the construction and development of
48 the condominium property in which the unit to be sold is located
49 or the easements and rights appurtenant thereto. For purposes of
50 this subsection, the term "actual costs" includes, but is not
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HB 1249 2024
51 limited to, expenditures for demolition, site clearing, permit
52 fees, impact fees, and utility reservation fees, as well as
53 architectural, engineering, and surveying fees that directly
54 relate to construction and development of the condominium
55 property or the easements and rights appurtenant thereto.
56 However, no part of these funds may be used for salaries,
57 commissions, or expenses of salespersons; for advertising,
58 marketing, or promotional purposes; or for loan fees and costs,
59 principal and interest on loans, attorney fees, accounting fees,
60 or insurance costs. A contract which permits use of the advance
61 payments for these purposes shall include the following legend
62 conspicuously printed or stamped in boldfaced type on the first
63 page of the contract and immediately above the place for the
64 signature of the buyer: ANY PAYMENT IN EXCESS OF 10 PERCENT OF
65 THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO CLOSING PURSUANT
66 TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES BY THE
67 DEVELOPER.
68 Section 3. Section 718.407, Florida Statutes, is created
69 to read:
70 718.407 Condominiums created within a portion of a
71 building or within a multiple parcel building.—
72 (1) Notwithstanding s. 718.103(12) or s. 718.108(1), a
73 condominium may be created within a portion of a building or
74 within a multiple parcel building, as defined in s. 193.0237(1),
75 as provided in this section.
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76 (2) The common elements of a condominium created within a
77 portion of a building or a multiple parcel building are only the
78 portions of the building submitted to the condominium form of
79 ownership, excluding the units of such condominium.
80 (3) The declaration of condominium that creates a
81 condominium within a portion of a building or within a multiple
82 parcel building, the recorded instrument that creates the
83 multiple parcel building, or any other recorded instrument
84 applicable under this section must specify all of the following:
85 (a) The portions of the building that are included in the
86 condominium and the portions of the building that are excluded.
87 (b) The party responsible for maintaining and operating
88 those portions of the building that are shared facilities,
89 including, but not limited to, the roof, exterior of the
90 building, windows, balconies, elevators, building lobby,
91 corridors, recreational amenities, and utilities.
92 (c)1. How the expenses for the maintenance and operation
93 of the shared facilities will be apportioned among the portions
94 of the building, including the specific initial apportionment of
95 expenses. An owner of a portion of a building or the condominium
96 association for the portion of the building submitted to
97 condominium form of ownership must approve any increase in the
98 expenses apportioned to a such portion of the building. The
99 apportionment of the expenses for the maintenance and operation
100 of the shared facilities is presumed appropriate if such
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101 apportionment is based on any of the following criteria or any
102 combination thereof:
103 a. The area or volume of each portion of the building in
104 relation to the total area or volume of the entire building,
105 exclusive of the shared facilities.
106 b. The market value of each portion of the building in
107 comparison to the total market value of the entire building.
108 c. The extent to which the unit owners are permitted to
109 use various components of the shared facilities.
110 2. This paragraph does not preclude the use of an
111 alternative method of apportionment of expenses provided the
112 method is stated in the declaration of condominium that creates
113 a condominium within a portion of a building or within a
114 multiple parcel building, the recorded instrument that creates
115 the multiple parcel building, or any other recorded instrument
116 applicable under this section.
117 (d) The party responsible for collecting shared expenses
118 from all owners.
119 (e) The rights and remedies that are available to enforce
120 payment from the other owners.
121 (4) The association of a condominium subject to this
122 section has the right to inspect and copy the books and records
123 upon which the costs for maintaining and operating the shared
124 facilities are based and to receive an annual budget with
125 respect to such costs.
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126 (5) Each contract for the sale of a unit in a condominium
127 subject to this section must contain in conspicuous type a
128 clause that substantially states:
129
130 THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
131 CREATED WITHIN A PORTION OF A BUILDING. THE COMMON
132 ELEMENTS OF THE CONDOMINIUM CONSIST ONLY OF THE
133 PORTIONS OF THE BUILDING SUBMITTED TO THE CONDOMINIUM
134 FORM OF OWNERSHIP, EXCLUDING THE UNITS. THE
135 CONDOMINIUM MAY HAVE MINIMAL OR NO COMMON ELEMENTS.
136 PORTIONS OF THE BUILDING THAT ARE NOT INCLUDED IN THE
137 CONDOMINIUM ARE GOVERNED BY A SEPARATE RECORDED
138 INSTRUMENT THAT CONTAINS IMPORTANT PROVISIONS AND
139 RIGHTS.
140
141 A CONTRACT THAT DOES NOT CONFORM TO THE REQUIREMENTS
142 OF SECTION 718.407, FLORIDA STATUTES, IS VOIDABLE AT
143 THE OPTION OF THE PURCHASER BEFORE CLOSING.
144
145 (6) The seller of a unit in a condominium subject to this
146 section must provide a separate disclosure summary that must be
147 signed by the purchaser. The disclosure summary must contain the
148 following statements in conspicuous type:
149
150 DISCLOSURE SUMMARY
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151 THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS
152 CREATED WITHIN A PORTION OF A BUILDING OR WITHIN A
153 MULTIPLE PARCEL BUILDING. PORTIONS OF THE BUILDING
154 THAT ARE NOT INCLUDED IN THE CONDOMINIUM ARE (OR WILL
155 BE) GOVERNED BY A SEPARATE RECORDED INSTRUMENT THAT
156 CONTAINS IMPORTANT PROVISIONS AND RIGHTS. THE
157 ASSOCIATION AND UNIT OWNERS MAY HAVE LIMITED OR NO
158 CONTROL OVER THE MAINTENANCE, OPERATION, AND COSTS OF
159 THE PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO
160 THE CONDOMINIUM FORM OF OWNERSHIP. A COPY OF SUCH
161 INSTRUMENT IS ATTACHED HERETO. THE ALLOCATION BETWEEN
162 THE OWNERS OF THE COSTS TO MAINTAIN AND OPERATE THE
163 BUILDING ARE SET FORTH IN THE DECLARATION OF
164 CONDOMINIUM OR OTHER RECORDED INSTRUMENT, WHICH IS
165 ATTACHED HERETO. THE OWNER OF ANOTHER PORTION OF THE
166 BUILDING CONTROLS THE MAINTENANCE AND OPERATION OF THE
167 PORTIONS OF THE BUILDING THAT ARE NOT SUBMITTED TO THE
168 CONDOMINIUM FORM OF OWNERSHIP AND DETERMINES THE
169 BUDGET FOR SUCH OPERATION AND MAINTENANCE.
170
171 (7) The creation of a multiple parcel building is not
172 a subdivision of the land upon which such building is
173 situated provided the land itself is not subdivided.
174 Section 4. Paragraph (c) is added to subsection (3) of
175 section 718.503, Florida Statutes, to read:
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176 718.503 Developer disclosure prior to sale; nondeveloper
177 unit owner disclosure prior to sale; voidability.—
178 (3) OTHER DISCLOSURES DISCLOSURE.—
179 (c) If a unit is located within a condominium that is
180 created within a portion of a building or within a multiple
181 parcel building, the developer or nondeveloper unit owner must
182 provide the disclosures required by s. 718.407(5) and (6).
183 Section 5. The amendments made to s. 718.103, Florida
184 Statutes, and the creation of s. 718.407(1), (2), and (7),
185 Florida Statutes, by this act are intended to clarify existing
186 law and shall apply retroactively; however, such amendments do
187 not revive or reinstate any right or interest that has been
188 fully and finally adjudicated as invalid before July 1, 2024.
189 Section 6. This act shall take effect July 1, 2024.
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Statutes affected: H 1249 Filed: 718.103, 718.202