| Differences Found Within Florida's Condominium, Cooperative, and HOA Acts:* |
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| Area |
Condominium |
Homeowners Association |
| Board Meeting Notice Requirements |
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| Regular |
ยง718.1 12(2)(c), F.S.: Posted conspicuously on condominium property at |
ยง720.303(2)(c)1, F.S.: Posted in a conspicuous place in community at least 48 hours in advance of meeting, except in an emergency, or mailed or delivered to each member at least 7 days before meeting, except in an emergency. |
| least 48 continuous hours preceding the meeting except in an emergency. |
| Special Assessment or Amendment to Rules |
ยง718.112(2)(c), F.S.: Written notice mailed, delivered, or electronically transmitted to unit owners and posted conspicuously on condominium property not less than 14 days prior to meeting. |
ยง720.303(2)(c)2, F.S.: Written notice mailed, delivered, or electronically transmitted to members and parcel owners and posted conspicuously on property or broadcast on closed-circuit cable television not less than 14 days before meeting. |
| Membership Meeting Notice Requirements |
ยง718.112(2)(d)2, F.S.: Written notice mailed, hand delivered, or electronically transmitted to each unit owner and posted in conspicuous place on condominium property at least 14 continuous days preceding annual meeting. |
ยง720.306(5), F.S.: Notice mailed, delivered, or electronically transmitted to members not less than 14 days prior to meeting. |
| Elections |
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| Method |
ยง718.1 12(2)(d)3, F.S.: By written ballot or voting machine. |
ยง720.306(9), F.S.: Conducted by procedures set forth in the governing documents of the association. |
| Proxy |
ยง718.112(2)(b)2, F.S.: No proxy shall be used in election of Board. Limited and general proxies may be used to establish quorum. Limited proxies shall be used for votes taken to: 1) waive/reduce reserves, 2) waive financial reporting requirements, 3) amend declaration, articles or bylaws, 4) any other matter under Act requiring unit owner vote. |
ยง720.306(8), F.S.: Members have right to vote by proxy that is dated, states date, time, and place of meeting, and signed by authorized person executing proxy. Proxy effective for specific meeting and lawfully adjourned meetings thereof, expires 90 days after date of original meeting, and revocable at any time by person who executed it. |
| ยง718.112(2)(b)3, F.S.: Proxy effective for specific meeting and lawfully adjourned meetings thereof, expires 90 days after date of original meeting, and revocable at any time by person who executed it. |
| Notice |
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ยง720.306(9), F.S.: Conducted by procedures set forth in the governing documents of the association. |
| First Notice |
ยง718.112(2)(d)3, F.S.: Mailed, delivered, or electronically transmitted with certification form to each unit owner entitled to vote not less than 60 days before scheduled election. |
N/A |
| Candidate Notice |
ยง718.112(2)(d)3, F.S.: Written notice to association not less than 40 days before scheduled election. May furnish information sheet to association not less than 35 days prior to election. |
N/A |
| Second Notice |
ยง718.112(2)(d)3, F.S.: Mailed, delivered, or electronically transmitted with ballot which lists all candidates, information sheet, and signed certification form to each unit owner entitled to vote not less than 14 days before scheduled election. |
N/A |
| Decision |
ยง718.1 12(2)(d)3, F.S.: By plurality of ballots cast. |
ยง720.306(9), F.S.: Except as otherwise provided in the governing documents, elected by a plurality of the votes cast by eligible voters. |
| Quorum |
ยง718.1 12(2)(d)3, F.S.: No quorum requirement, but at least 20 percent of eligible voters must cast a ballot. |
ยง720.306(1)(a), F.S.: 30 percent of the total voting interests, unless a lower number provided in bylaws. |
| Opt-Out Provisions |
ยง718.112(2)(d)8, F.S.: Association of 10 or fewer units may, by affirmative vote of majority of total voting interests, provide for different voting and election procedures in bylaws, which vote may be by proxy specifically delineating different voting and election procedures. The different voting and election procedures may provide for elections to be conducted by limited or general proxy. |
N/A |
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| Board Terms |
ยง718.112(2)(d), F.S.: Terms of all members of board shall expire at annual meeting and such board members may stand for reelection unless otherwise permitted by bylaws. In the event that bylaws permit staggered terms of no more than 2 years and upon approval of a majority of total voting interests, association board members may serve 2-year staggered terms. If no person is interested in or demonstrates an intention to run for the position of board member whose term has expired, such board member whose term has |
N/A |
| expired shall be automatically reappointed to board and need not stand for reelection. |
| Ineligibility for Board Service |
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| Coowners |
ยง718.112(2)(d), F.S.: In association of more than 10 units, coowners of unit may not serve as members of board of directors at same time. |
N/A |
| Removal/Suspension |
ยง718.112(2)(d), F.S.: Person who has been suspended or removed by division is not eligible for board membership. |
N/A |
| Conviction of Crime |
ยง718.1 12(2)(d), F.S.: Person who has been convicted of any felony is not eligible for board membership unless civil rights have been restored for a period of no less than 5 years as of date on which person seeks election to board. |
N/A |
| ยง718.1 12(2)(o), F.S.: Director or officer charged with felony theft or embezzlement offense involving association's funds or property shall be removed from office, creating vacancy in office to be filled according to law. |
| Delinquent in Payments |
ยง718.112(2)(n), F.S.: Director or officer more than 90 days delinquent in payment of regular assessments shall be deemed to have abandoned office, creating vacancy in office to be filled according to law. |
N/A |
| Participation at Meetings |
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| Board Meetings |
ยง718.112(2)(c), F.S.: All unit owners have right to attend and right to speak about all designated agenda items. Association may adopt written reasonable rules governing frequency, duration, and manner. |
ยง720.303(2)(b), F.S.: Members have right to attend and right to speak on any matter placed on agenda by petition of voting interests for at least 3 minutes. Association may adopt written reasonable rules expanding right of members to speak and governing frequency, duration, and manner, which may include a sign- up sheet for members wishing to speak. |
| Membership Meetings |
ยง7 18.1 12(2)(d)6, F.S.: Unit owners shall have right to participate with reference to all designated agenda items. Association may adopt reasonable rules governing the frequency, duration, and manner. |
ยง720.306(6), F.S.: Members and parcel owners have right to attend and speak with reference to all items opened for discussion or included on agenda. Unless contrary to governing documents, right to speak for at least 3 minutes on any item, provided written request submitted prior to meeting. Association may adopt written reasonable rules governing the frequency, duration, and manner. |
| Budget Procedures |
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| Budget Meeting |
ยง718.112(2)(e)1, F.S.: Board shall hand deliver, mail, or electronically transmit to each unit owner notice and copy of proposed annual budget at least 14 days prior to meeting. |
N/A |
| Budget Increases from Assessments |
ยง7 18.1 12(2)(e)2.a, F.S.: If annual budget requires assessments against unit owners which exceed 115 percent of assessments for preceding fiscal year, board shall conduct special meeting of unit owners if board receives, within 21 days after adoption of annual budget, written request for special meeting from at least 10 percent of all voting interests. Special meeting shall be |
N/A |
| conducted within 60 days after adoption of annual budget. Board shall hand deliver or mail notice of special meeting at least 14 days prior to meeting. |
| Reserves |
ยง718.1 12(2)(f)2, F.S.: Budget shall include reserve accounts for capital expenditures and deferred maintenance (which shall include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of amount, and for any other item for which cost exceeds $10,000). |
ยง720.303(6)(b), F.S.: Budget may include reserve accounts for capital expenditures and deferred maintenance for which association is responsible to extent that governing documents do not limit increases in assessments. |
| Year End Financial Reporting |
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| Timing |
ยง718.111(13), F.S.: Within 90 days after end of fiscal year, or annually on date provided in bylaws, association shall prepare and complete a financial report for preceding fiscal year. Within 21 days after final financial report is completed, but not later than 120 days after end of fiscal year or other date as provided in bylaws, association shall mail or hand deliver to each unit owner a copy of financial report or notice that a copy will be mailed or hand delivered, without charge, upon written request from unit owner. |
ยง720.303(7), F.S.: Within 90 days after end of fiscal year, or annually on the date provided in bylaws, association shall prepare and complete a financial report for preceding fiscal year. Within 21 days after final financial report is completed, but not later than 120 days after the end of fiscal year or other date as provided in bylaws, association shall provide each member with a copy of annual financial report or a written notice that a copy of financial report is available upon request at no charge. |
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| Type of Report |
ยง718.111(13)(a-b), F.S.: An association with total annual revenues of: |
ยง720.303(7)(a-b), F.S.: An association with total annual revenues of: |
| 1) less than $100,000 shall prepare report of cash receipts and |
1) less than $100,000 shall prepare report of cash receipts and expenditures. |
| expenditures. |
2) $100,000 or more, but less than $200,000, shall prepare compiled financial statements. |
| 2) $100,000 or more, but less than $200,000, shall prepare compiled financial statements. |
3) at least $200,000, but less than $400,000, shall prepare reviewed financial statements. |
| 3) at least $200,000, but less than $400,000, shall prepare reviewed financial statements. |
4) $400,000 or more shall prepare audited financial statements. |
| 4) $400,000 or more shall prepare audited financial statements. |
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| Record Inspections |
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| Members' Ability |
ยง718.111(12)(c), F.S.: Official records of association are open to inspection by any member or authorized representative of member at all reasonable times. Includes right to make or obtain copies at reasonable expense of member. Association may adopt reasonable rules regarding frequency, time, location, notice, and manner. |
ยง720.303(5), F.S.: Official records shall be maintained within the state and must be open to inspection and available for photocopying by members or authorized agents at reasonable times and places within 10 business days after receipt of a written request for access. |
| (c) Association may adopt reasonable rules regarding frequency, time, location, notice, and manner. |
| Association's Failure to Comply |
ยง718.111(12)(c), F.S.: Failure of association to provide records within 10 working days after receipt of a written request shall create a rebuttable presumption that the association willfully failed to comply. |
ยง720.303(5)(a), F.S.: Failure of association to provide access to records within 10 business days after receipt of a written request creates a rebuttable presumption that association willfully failed to comply. |
| Insurance Coverage Requirements |
ยง718.111(11)(a), F.S.: Adequate hazard insurance, regardless of any requirement in declaration for coverage by association for full insurable value, replacement cost, or similar coverage. |
ยง720.303(11), F.S.: Windstorm insurance coverage for group of no fewer than three communities may be obtained and maintained for communities if insurance coverage is sufficient to cover an amount equal to probable maximum loss for communities for a 250-year windstorm event. |
| 2. Association may also provide adequate hazard insurance coverage for a group of no fewer than three communities to cover an amount equal to probable maximum loss for communities for a 250-year windstorm event. ยง718.111(1 1)(d), F.S.: Association shall use best efforts to obtain and maintain adequate insurance to protect association, association property, common elements, and condominium property. |
| ยง718.111(1 1)(g)2, F.S.: Association shall require each owner to provide evidence of currently effective policy of hazard and liability insurance upon request, but not more than once per year. |
| Enforcement Procedures |
ยง718.1255(4)(a), F.S.: Prior to the institution of court litigation, party to dispute shall petition division for nonbinding arbitration. |
ยง720.3 1 1(2)(a), F.S.: Disputes between an association and parcel owner shall be the subject of a demand for presuit mediation served by an aggrieved party before the dispute is filed in court. |
| ยง720.311(2)(c), F.S.: If presuit mediation is unsuccessful, parties may file unresolved dispute in court or elect to enter into binding or nonbinding arbitration. |
| Fining/Suspension of Use Rights |
ยง718.303(3), F.S.: If declaration or bylaws provide, association may levy reasonable fines against unit for failure of owner of unit, or its occupant, licensee, or invitee, to comply with any provision of declaration, bylaws, or reasonable rules of association. No fine will become a lien against unit or may exceed $100 per violation, except if levied on basis of each day of a continuing violation, with single notice and opportunity for hearing, provided such fine in the aggregate does not exceed $1,000. Reasonable notice and opportunity for hearing held before a committee required to levy fine. |
ยง720.305(2), F.S.: If governing documents provide, association may suspend, for a reasonable period of time, rights of a member or member's tenants, guests, or invitees, or both, to use common areas and facilities and may levy reasonable fines, not to exceed $100 per violation, except if levied on the basis of each day of a continuing violation, with a single notice and opportunity for hearing, provided such fine in the aggregate does not exceed $1,000 unless otherwise provided in the governing documents. A fine shall not become a lien against a parcel. In any action to recover a fine, the prevailing party is entitled to collect its reasonable attorney's fees and costs from the nonprevailing party as determined by the court. |
| (a) Notice of at least 14 days and an opportunity for a hearing before a committee of at least three members appointed by the board required to impose a fine. |
| Warranties |
ยง718.203(1)(a-e), F.S.: Developer shall be deemed to have granted to purchaser of each unit an implied warranty of fitness and merchantability for 3 years as to each unit and 3 years or 1 year after owners other than developer obtain control of association, whichever occurs last, but in no event more than 5 years, for roof and structural components. |
N/A |
| Condominium Conversions |
ยง718.618(6), F.S.: Developer makes no implied warranties when existing improvements are converted to ownership as a residential condominium and reserve accounts are funded. If no reserve accounts, developer shall be deemed to have granted to purchaser of each unit an implied warranty of fitness and merchantability for period beginning with notice of intended conversion and continuing for 3 years thereafter, or recording of declaration and continuing for 3 years thereafter, or 1 year after owners other than developer obtain control of association, whichever occurs last, but in no event more than 5 years. |
N/A |
| Alterations |
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| To Units |
ยง718.110(4), F.S.: Unless otherwise provided in declaration as originally recorded, no amendment may change configuration or size of any unit in any material fashion, materially alter or modify appurtenances to unit, or change proportion or percentage by which unit owner shares common expenses of condominium and owns common surplus of condominium unless record owner of unit and all record owners of liens on unit join in |
N/A |
| execution of amendment and unless all record owners of all other units in same condominium approve amendment. |
| To Common Elements or Assoc. Property |
ยง718.113(2)(a), F.S.: Except as otherwise provided, there shall be no |
N/A |
| material alteration or substantial additions to common elements or to real property which is association property, except in manner provided in declaration as originally recorded or as amended under procedures provided therein. If declaration as originally recorded or as amended under procedures provided therein does not specify the procedure for approval of material alterations or substantial additions, 75 percent of total voting interests of association must approve alterations or additions. |
| Assessments |
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| Association's Power |
ยง718.111(4), F.S.: The association has power to make and collect assessments. |
ยง720.3085(1), F.S.: When authorized by the governing documents, the association has a lien on each parcel to secure the payment of assessments, which is effective from and shall relate back to the date on which the original declaration of the community was recorded. |
| Owner's Obligation |
ยง718.116(1)(a), F.S.: A unit owner, regardless of how title is acquired, is liable for all assessments which come due while unit owner. Additionally, unit owner is jointly and severally liable with previous owner for all unpaid assessments that came due up to time of transfer of title, without prejudice to any right owner may have to recover from previous owner amounts paid by owner. |
ยง720.3085(2)(a-b), F.S.: (a) A parcel owner, regardless of how title is acquired, is liable for all assessments that come due the parcel owner. The parcel owner's liability for assessments may not be avoided by waiver or suspension of use or enjoyment of any common area or by abandonment of parcel upon which assessments are made. |
| (b) A parcel owner is jointly and severally liable with previous parcel owner for all unpaid assessments that came due up to time of transfer of title, without prejudice to any right present parcel owner may have to recover any amounts paid by present owner from previous owner. |
| Lien Procedures |
ยง718.121(4), F.S.: No lien may be filed by the association against a condominium unit until 30 days after the date on which a notice of intent to file a lien has been delivered to the owner by registered or certified mail, return receipt requested, and by first-class United States mail to the owner. |
ยง720.3085(4)(a-b), F.S.: Homeowners' association may not file a record of lien against a parcel for unpaid assessments unless a written notice or demand for past due assessments provides the owner with 45 days following the date the notice is deposited in the mail to make payment for all amounts due, including, but not limited to, any attorney's fees and actual costs associated with the preparation and delivery of the written demand and is sent by registered or certified mail, return receipt requested, and by first-class United States mail to the parcel owner. |
| ยง720.3085(5), F.S.: Action to foreclose the lien may not be brought until 45 days after the parcel owner has been provided notice of the association's intent to foreclose and collect the unpaid amount. Notice may not be provided until the passage of the 45 days required to file a record of lien above. |
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