“Transfer Fee Increase?,” Naples Daily News

“Transfer Fee Increase?,” Naples Daily News

Q: You previously addressed the $100 cap on the fees associations can charge when a property is sold. I heard there was a change to this statute. Can you provide an update? J.B.

A: My February 16, 2020 column addressed Section 718.112(2)(i) of the Florida Condominium Act which regulates transfer fees which a condominium association can legally charge. This statute was amended by Senate Bill 630 with an effective date of July 1, 2021. The amendment increases the maximum transfer fee that can be charged in connection with the review of a unit sale or lease application.

The condominium association must still have the authority to approve sales or leases in order for the fee to be charged and the fee must be authorized by the declaration of condominium, articles of incorporation, or bylaws. The maximum amount of the fee, however, has been raised from $100 to $150. The Department of Business and Professional Regulation must adjust the fee every 5 years based upon the Consumer Price Index for all urban consumers, U.S. city average, and publish the amount on its website.

Chapter 720 of the Florida Statutes, known as The Florida Homeowners Association Act, does not regulate transfer fees. The most widely accepted legal view is that these fees can be set through the governing documents, and are not subject to the caps imposed by the condominium statute.

Q: In your August 17, 2021 column you said there was a change in the law regarding the rights of renters to see certain records. Were there any other changes to the law about official records? J.S.

A: Yes, new changes to the condominium law, effective July 1, 2021, on this subject include the following:

  • Bids for work to be performed must be maintained for at least 1 year after receipt of the bid. The previous version of the law required bids to be kept for 7 years.
  • As previously advised, a renter has a right to inspect and copy only the declaration of condominium and the association’s bylaws and rules.
  • An association may not adopt rules requiring a member to demonstrate any purpose or state any reason for a record inspection.
  • For condominiums with 150 or more units, an association, in lieu of posting copies of certain required documents to a website, may alternatively make the documents available through a digital application (“app”) that can be downloaded on a mobile device.

To read the original Naples Daily News article, please click here.

David Muller is board-certified in Condominium and Planned Development Law and regularly provides practical advice that ensures the fiscal success and legal compliance of both commercial and residential community associations. He has significant experience in drafting governing documents and amendments, negotiating contracts, dispute resolution, and more. For David’s complete bio, please click here.