“MRTA Mystery Unraveled” – News-Press

Q: The manager of our homeowners’ association told the board that it was obligated to put the “MRTA issue” on the agenda for its annual meeting. When pressed for further details, she said it is a complicated real estate law she is not qualified to explain and that we should contact the association’s attorney. Can you shed any light on this? (R.Y., via e-mail)

A: You may want to read my column dated August 25, 2024. It, like my other previous columns, can be found on line at: https://beckerlawyers.com/marketable-record-title-act-requires-action-by-hoa-news-press/.

Chapter 712 of the Florida Statutes is called the Marketable Record Title Act, and is often referred to as “MRTA,” sometimes pronounced “muhrta” and sometimes pronounced “martah.”

MRTA was originally enacted in 1963 to simplify and facilitate land transactions. MRTA generally extinguishes interests that are 30 years older than the “root of title,” and provides a way for owners of existing old interests to preserve them. To do so, the Act requires that outstanding interests be re-recorded periodically.

MRTA was generally intended to allow title searchers and title insurance companies not to worry about potential old defects in title, such as a deed that was not properly witnessed 50 years ago. However, about three decades ago, Florida’s appeals courts began ruling that covenants and restrictions of a homeowners’ association could be extinguished by MRTA, more by the passage of 30 years’ time.

This obviously could lead and did lead to harsh results and the unintentional dismantling of agreed-upon community governance structures, including requirements for mandatory membership in the homeowners’ association. Not surprisingly, there have been numerous amendments to the statutes since that time that both “preserve” HOA documents against MRTA extinguishment and provides a procedure to “revitalize” HOA governing documents that have been extinguished by MRTA.

Preservation or revitalization can be undertaken by a “property owners association.” A property owners’ association is defined to include a homeowners’ association under Chapter 720, the Florida Homeowners’ Association Act, and certain other entities. Condominium restrictions are generally not affected by MRTA since the deed to each unit specifically references the declaration of condominium, which contains the restrictions.

If the association acts within the 30-year period, the beginning date of which is subject to a rather complicated legal analysis, the board of directors can approve preservation and stave off the need for further action on the issue for another 30 years. Relatively detailed legal procedures need to be followed, and the required documents should be prepared and guided through passage by a qualified attorney.

The law was also amended a few years ago to permit the use of amendments to HOA covenants as a means of providing adequate record notice of the preservation of covenants against MRTA extinguishment. Again, there are specific procedures that must be followed, and which should be handled by an attorney.

Because MRTA is so important for homeowners’ associations, existential in many cases, the law was amended in 2018 to specially require the board of a homeowners’ association to address this issue once per year. Under Section 720.303(2)(e), of the Florida Homeowners’ Association Act, at the first board meeting following the annual meeting of members, excluding the organizational meeting, the board is required to discuss whether it is MRTA compliant.

So, your manager was correct. The law is complicated. The law is also rigid and can result in very harsh outcomes. Therefore, the Florida legislature has mandated that each board of a homeowners’ association review this issue once per year. The report could be “we took care of this 5 years ago and have another 25 years before we have to deal with it.” Alternatively, the report may be that this is an issue the association needs to take care of and allow the board adequate time to get legal advice, understand what must be done, and by when.

Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers. Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com. Past editions may be viewed at floridacondohoalawblog.com.