A proposed condominium bill which could be voted on this week would do much to improve the financial prospects for Florida condominium associations. The new law would allow condo associations to collects the rents from tenants in condo units whose owners have not paid condominium dues. Additionally, the law would require banks to pay up to one year in delinquent fees on units that are foreclosed. Current law only requires the banks to pay up to six months.
The new law would also remove provisions in current law that treats owners of more than seven units in condominiums of 70 or more units as “developers”. Under current Florida law investors who purchase units in bulk from developers or who purchase multiple units in distressed condominium projects can be treated as developers and thus could be held responsible for any building defects and would also be subject to additional disclosures and resale restrictions. removal of this provision in current law would encourage investors to purchase units in bulk in distressed condominium developments. I am aware of many condominiums in the area that would benefit greatly from this proposed change. Bulk buyers are often the best way to flush foreclosures, unsold units, and short sales thru the system and then resale to end users who will restores distressed associations to health. Under the current law bulk buyers face tremendous exposure by being held responsible for construction defects in buildings that they did not build.
