May 5th, 2023 4:49 AM by Linda Holley
Good morning and thank you for the 7,600 people who read my blog the past 7 days. My newly-launched book, Failure to Disclose - a Double-Edged Sword, is now on Books a Million, Barnes and Noble, and Amazon. I'm getting five-star reviews on Amazon - so check it out. If you buy my book, please leave a review on Amazon -- many thanks to those of you who already have!
Remember the collapse of the 12-floor Champlain towers in Surfside, Florida, two years ago when 98 people tragically lost their lives? That building was constructed in 1981 and there were structural issues. There was a court settlement last year for nearly $1 billion.
Changes in Florida Condominium Laws: Milestone inspections for condominiums 30 years and older must now be performed by December 31, 2024 and every ten years thereafter. Engineering studies completed for condos that are 3 stories or higher or 3 miles from the ocean will also be required.
The more conservative condominium associations are getting ready for the sticker shock that they may be facing next year when these studies and inspections are completed and dollars are assigned to deferred maintenance.
Future maintenance costs for structural items must be included in future reserve budgets and buyers will have access to this information when they are deciding to buy. The days of condominium association members voting to keep the dues down and overburdening future owners are over. Many owners have hoped for years to get to heaven before the condominium goes to hell. It's sad that it took losing 98 people in Surfside, Florida, for this much-needed change. The new laws are designed to protect the safety of condominium residents and financial future of unsuspecting potential buyers.
What's the answer today for condominium buyers and sellers?
1. If the condominium is approaching 30 years in age, buyers and sellers need more information from the condominium association's Board of Directors. Find out!
a. How old are the roofs, asphalt, building exterior paint? When was the last engineer or reserve study done?
b. Have cast iron pipes been replaced? Have the interiors been replumbed?
c. Who is responsible for carport repair, replacement?
d. When was the pool and pool deck last resurfaced?
e. How much of the operating budget is going into reserves? (Lenders require 10% but cash buyers--beware)
f. What percentage of the reserve budget is funded? If below 30% BUYERS BEWARE!
g. Have there been any insurance claims the past three years?
h. Have there been discussions of future assessments? Discussions in annual or board meeting minutes or newsletters must be disclosed to potential buyers. Ask to see minutes and newsletters.
i. Discuss concerns with an attorney who specializes in condominium law. I know a few great condo law attorneys, so call me for an attorney referral.
j. Is it time to update the condominium documents, that could be 50+ years old and poorly written, describing what the association pays for vs. what owners will pay? May need legal interpretation - it's worth it!
k. Condominiums for sale by owners: BUYERS BEWARE! OMG...LOL!
2. We currently have contract addenda for condominium associations (Addendum A), so not sure if the Florida Bar is revising this addendum or if there will be new disclosures for sellers to provide to buyers at the time the listing goes in MLS. Some brokerages have their own disclosures, and that is a very good thing. Ask your Realtor. Ask your title company or closing attorney.
Condominium associations and sellers should be getting ready to disclose, disclose, disclose--the three most important words in real estate today.
Call Linda Holley, Realtor, GRI, SRES, 941-914-4914, Emerald Team of Fine Properties, for your real estate needs in Sarasota County.
And check out my new book, Failure to Disclose - A Double-Edged Sword by Linda Holley
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