Chapter 8: Real Property Rights Flashcards Preview

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Flashcards in Chapter 8: Real Property Rights Deck (98)
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1
Q

Real Property

A

Although the terms real estate and real property are often used interchangeably by most people, there are important differences in these terms regarding property ownership rights and use.

2
Q

Real Estate

A

is physical, tangible, and immobile. It includes the earth’s surface, subsurface, and the air above the surface. It also includes anything growing on the land, anything permanently attached to the land, everything provided by nature such as mineral deposits, wildlife, timber, fish, water, and soil, and all improvements on and to the land. Improvements are anything man-made, such as buildings or other relatively permanent structures attached to or located on the land.

3
Q

Air

A

although one may own the air extending above the property, the right to own it is limited. For example, an owner cannot prevent airplanes from flying through his or her airspace.

4
Q

Surface

A

surface rights allow property owners to use the surface of the land to build buildings, grow crops, and so on.

5
Q

Subsurface

A

ownership of the subsurface extends below the surface to the center of the earth in a “V” shape. This includes ownership of natural resources such as coal, oil, and natural gas.

6
Q

Real Property

A

includes the physical land and improvements (real estate), together with legal rights to own or use the property. An individual’s property rights are guaranteed and protected by government.

7
Q

Of special concern are the rights

A

associated with the use and ownership of water. Water, may be the property of the owner; in other cases, it may be considered to be public domain. A man-made lake on an owner’s property is typically considered to be full owned by the property owner. On the other hand, a natural lake may or may not be. Laws involving the ownership or use of water are complex.

8
Q

Riparian Rights

A

are the rights of an owner whose property borders a flowing waterway such as a river or stream. The property owner is not considered to be the owner of the water flowing over or past the property, but has a right of reasonable use of the water. This includes fishing, swimming, and so on, but the property owner is not allowed to divert or pollute the water, thus interfering with the rights of others who have a subsequent right to use the same water.

9
Q

Littoral Rights

A

are the rights of owners of property bordering non-flowing water, such as an ocean, sea, or lake. These rights generally give the property owner rights only to the shoreline or high-water mark. In the case of ocean- or gulf-front properties, the ownership extends to the mean high-tide mark.

10
Q

Erosion

A

refers to the loss of soil that is carried away by water washing against a riverbank or a beach.

11
Q

Accretion

A

is an increase in land area as moving water deposits soil in other than its original location. This is the opposite of erosion.

12
Q

Alluvion

A

is soil resulting from accretion.

13
Q

Reliction

A

is the exposure of dry land once covered by water when the level in a lake recedes, or a river or stream changes course.

14
Q

Personal Property

A

Personal property and chattels are synonymous terms.

Personal property is movable, and includes items such as furniture, automobiles, stocks, bonds, and mortgages.

15
Q

Tangible

A

Something that is tangible has physical existence. Real estate is considered to be tangible.

16
Q

Intangible

A

Something that is intangible has no physical existence, which means that it cannot be touched. Stocks and bonds, for example, are intangible.

17
Q

Fixtures

A

A fixture is an item that was once personal property, but has been installed or attached to the land or building in a permanent way that has caused it to become part of real estate. When a residential tenant adds a fixture to a property, it cannot be removed at the expiration of the lease and becomes the property of the landlord.

18
Q

Trade Fixtures

A

Trade fixtures are articles of personal property that have been attached to real estate that is rented or leased by a tenant and used in the conduct of business. Personal property installed to conduct a business or trade is not considered part of the real estate and can be removed during or at the termination of a lease.

19
Q

Distinguishing Between Real and Personal Property

A

In a real estate transaction, licensees should be careful to distinguish between real and personal property. Unless a contract states otherwise, the sale of real property does not include items of personal property. The potential for conflict between the parties to a real estate transaction can be significantly reduced by clearly identifying in a sales contract those items of personal property that are to be included. It is often wise to also identify items of personal property that are not to be included, but may become the subject of a later disagreement.

20
Q

If a lawsuit should arise between the parties

A

to a real estate sales transaction over which items were to be included in the sale and which were not, courts may be called upon to decide. Courts usually employ four legal tests to decide if an item is real or personal property. Since the sale typically only involves the transfer of real property, this can be an extremely important decision.

21
Q

The four tests used by courts to determine real or personal property are

A
  1. Intent of the parties
  2. Relationship of the parties
  3. Method of annexation
  4. Adaptation of the article
22
Q

Intent of the parties

A

by reviewing the listing and sales contracts, the court may be able to decide what was intended. The words and actions of the parties before, during, and after the sale may also be considered in making this decision.

23
Q

Relationship of the parties

A

the terms of a lease, for example, may specify that certain improvements made by a tenant during the term of the contract may be removed at the expiration of the lease. This legal relationship may be the basis for the courts decision.

24
Q

Method of annexation

A

how an article is attached to the property may very well determine, in the judgment of the court, whether an item should be removed or not. Typically, if tools are required for the removal, and damage may occur to the item or the property from which the article is to be removed, it is classified as part of the real estate. There are exceptions to this general rule.

25
Q

Adaptation of the article

A

this test looks to the manner in which the item in dispute is being used. If the item is necessary to fulfill the purpose and utility for which the building was constructed, the court will usually decide the item is real property.

26
Q

Allodial System

A

Real property laws in the United States are based on the allodial system, which allows private citizens the right to own land.

27
Q

Bundle of Rights

A

The legal rights of ownership are often compared to a bundle of sticks, with each stick representing a separate transferable right. All property rights taken together may be thought of as a bundle of rights with each right representing a separate “stick” in the bundle.

28
Q

There are five large “sticks” in the bundle of rights

A
  1. Possession
  2. Disposition
  3. Enjoyment
  4. Exclusion
  5. Control
29
Q

Possession

A

an owner has a right to possess or occupy the property.

30
Q

Disposition

A

an owner generally has the right to sell the property, to give it away, or leave it in a will. There are exceptions to this.

31
Q

Enjoyment

A

an owner has the right to quiet use and enjoyment of the property without disturbance by hostile claimants.

32
Q

Exclusion

A

owners have the right to prevent others from entering or using their property.

33
Q

Control

A

an owner has the right to determine how the property will be used.

34
Q

Estates

A

An estate is the degree, quantity, nature, and extent of interest or ownership rights a person can have in real property. That portion of the bundle of rights the individual has determines the extent or type of estate held. Real property ownership can be undivided, or divided into various types of smaller estates.
A party entitled to rights in a property is a tenant.

35
Q

Types of Estates

A

Estates, or tenancies, can be freehold or non-freehold (leasehold)

36
Q

Freehold

A

Fee Simple
or
Life Estate

37
Q

Fee Simple

A
  • In Severalty
  • In Common
  • Joint
  • By the Entireties
38
Q

Life Estate

A
  • Reversion Estate

* Remainder Estate

39
Q

Non-Freehold (Leasehold) (Temporary Possession & Use)

A

Tenancy
• At Will
• For Years
• At Sufferance

40
Q

Freehold estate

A

is an estate involving ownership. Anyone who owns real property has a freehold estate. Freehold estates have no specified time for the rights to expire. There are two types of freehold estates.

41
Q

Fee Simple

A

the owner has a complete bundle of rights. It is the simplest and yet the most comprehensive estate in land. It is the most desirable and most common type of estate. Also referred to as “fee simple,” “fee” or “fee simple absolute.”

42
Q

Estate in Severalty

A

is sole ownership of the entire bundle of rights. There is no co-ownership. With an estate in severalty, the owner may leave his or her interest in a will. If the owner dies intestate (without a will), the interest will descend to the owner’s heirs.

43
Q

Estate in Common (Tenancy in Common)

A

is a free estate held by two or more persons. Each person has an undivided interest in the whole property with equal rights of use and possession. Each owner may sell his or her interest during his or her lifetime without the consent of the other owners, and without affecting any other owner’s rights. A tenancy in common ownership can be created by the same or different deeds, at the same or different times, with equal or unequal shares of ownership. A tenancy in common owner may leave his or her interest in a will. If the owner dies without a will, the interest will descend to the owner’s heirs.

44
Q

Joint Tenancy (Joint Estate)

A

is a fee estate shared by two or more persons who must have equal and undivided interests. A joint tenancy can be created only when the four unities of possession, interest, time, and title are present. In other words, all tenants must have equal rights of use and possession, equal and undivided interests, and have acquired their own ownership at the same time by the same deed or conveyance. Right of survivorship, upon death of a joint tenant, the interest of the decedent does not pass according to a will or by descent and distribution; it passes instead to the surviving joint tenants. The interest cannot be left in a will since the form of ownership dictates the succession of ownership. In Florida, a joint tenancy can only be created if the right of survivorship is clearly expressed in the deed or conveyance. If not, a tenancy in common results. A joint tent can sell the ownership interest during his or her lifetime. However, the purchaser will be a tenant in common since the four unities (PITT) are not present.

45
Q

Tenancy by the Entireties

A

is an estate for married couples only that is created automatically whenever a married couple purchases property at the same time with both names on the deed and no other ownership form specified. The marriage is considered to be the owner of the property in which each spouse has a right of survivorship. Upon the death of one spouse, the surviving spouse will own the property in a fee simple as an estate in severalty. Since the marriage is the technical owner of the property, one spouse alone cannot do anything that affects the ownership without the other spouse’s consent. Debts incurred by only one spouse cannot be enforced against the property. Neither spouse alone may place a mortgage against the property sell his or her interest outside of the marriage, or leave his or her interest in a will. The law serves to protect the marriage against the inappropriate actions of one spouse that negatively affect the other. In the event of a divorce, the ownership converts to a tenancy in common.

46
Q

In Florida, married couples (Tenancy by the Entireties)

A

married couples are permitted to won property separately from the marriage. Property owned in one spouse’s name before the marriage or acquired by gift or inheritance during the marriage is considered separate property. Florida doe not recognize community property. In a community property state, all property acquired during the marriage is owned jointly by both spouses.

47
Q

Life Estate

A

is a free hold estate created when an owner of a fee simple estate conveys ownership to another, but only for the balance of the lifetime of the party to whom the property is conveyed. The party who receives the ownership of a life estate is called a life tenant. During the life of the life tenant, he or she has all rights in the property. He or she may lease it, mortgage it, or even sell it. However, the life tenant cannot convey more rights than he or she possesses and must preserve the property for the one who is to receive it upon his or her death. Since the life tenant has no ability to control the property after his or her death, in the event the property is leased, mortgaged, or sold, those rights terminate upon the death of the life tenant. Provision must be made in the deed that creates a life estate for the succession of ownership upon the death of the life tenant.

48
Q

Reversion Estate

A

the party who created the life estate, called the grantor, may wish to have the property ownership returned to him or her or to his or her heirs. The right to regain the ownership is called a reversion estate.

49
Q

Remainder Estate

A

the grantor may instead wish to have the property pass to another person or entity names in the original deed. If someone other than the original owner is to receive the ownership, it is called a remainder estate. The difference between a reversion estate and a remainder estate is simply who is to receive the ownership.

50
Q

Remainderman

A

If the remainderman is certain to receive the rights, he or she is a vested remainderman. If there is uncertainty as to whether or not the rights will pass to the remainderman, he or she is a contingent remainderman (e.g. future children).

51
Q

A life estate is usually, but not always,

A

based on the life of the life tenant. Instead, it may be based on the life of a third person. When based on the life of a third person, the estate is called an estate pur autre vie, which means “an estate for the life of another.”

52
Q

Estate in possession

A

One who has possession or control of property has an estate in possession. An owner in fee simple or a life tenant has an estate in possession. When a party is to receive rights in the future, they have an estate in expectancy. A remainderman would have an estate in expectancy.

53
Q

Non-Freehold (Leasehold) Estates

A

A non-freehold, or leasehold estate is an estate in which the tenant does not have full ownership interest in the property. The tenant only has a right of possession and use. The tenant has a leasehold estate (leasehold interest). The landlord has a reversion estate (remainder interest). There are 3 types of non-freehold estates.

54
Q

Tenancy at Will

A

is a non-freehold estate with the tenant in lawful possession of the property under an agreement with the landlord, but with no definite time limit for the rights to terminate. The agreement can be oral or written, and is referred to as a period-to-period tenancy. All oral leases are tenancies at will. A tenancy at will is terminated by the sale of the property or by death of either party. It can also be terminated at the will of either the landlord or tenant by giving proper legal notice. The length of the tenancy determines the notice period required to terminate a tenancy at will. The frequency of the rental period typically determines the length of the tenancy and establishes the notice period required to terminate the agreement.

55
Q

Tenancy for years

A

is a non-freehold estate with the tenant in lawful possession of the property under an agreement with the landlord for a specified period of time. There must be a definite beginning and a definite ending date for the rights to exist, and these dates must be specified. The landlord has an estate in reversion while the tenant is in possession of the property. Termination of a tenancy for years can occur by mutual agreement of the parties, by expiration of the agreed-upon lease period, or by a breach of contract, which may result in a lawsuit. A tenancy for years must be in writing, signed by the landlord, and witnessed by two persons.

56
Q

Tenancy at Sufferance

A

is a non-freehold estate that arises when a tenant occupies a landlord’s real estate in the absence of any agreement. The most common example is when a tenant “holds over” after the expiration of a lease. A tenancy at sufferance may be terminated by either landlord or tenant without notice. In this situation, the tenant owes the landlord fair market rent for the period of occupancy.

57
Q

Elective Share

A

Dower and curtsey laws are a common law system, which establish the rights in property of widows and widowers upon the death of a spouse. These laws were repealed in Florida in 1976 and replaced by the elective share. Under dower and curtsey laws, spouses were not treated equally. Florida enacted the elective share provision to create a balance of rights in property between marital partners. Elective share provides for a surviving spouse to be entitled to 30% of the decedent’s real and personal property owned at the time of death. The purpose of elective share is to prevent a spouse from being harmed by an unfair will. If a decedent left less than 30% to his or her spouse, the surviving spouse can use this right to override the will and claim at least that amount.

58
Q

Elective share is not automatic

A

It must be elected by filing with the court within four months of the date of first public notice of the administration of the estate. If the will is litigated, elective share must be filed with the court within 40 days following the termination of litigation. Elective share is a personal right and cannot be sold or transferred to another person. Once a 30% share has been transferred to the surviving spouse, the surviving spouse owns the property in fee simple and can dispose of it through sale, or use the property as desired. Surviving spouse has 4 months to file to override the will.

59
Q

Elective share does not apply

A

to property owned as a tenancy by the entireties. This protection is unnecessary since a surviving spouse is the sole owner of the property.
Elective share does not apply to homestead property.

60
Q

Descent and Distribution

A

Probate laws provide for the passing of property to legal heirs under the law of descent and distribution. When an individual dies intestate (without a will), the law stands between the property of the decedent (the individual who died) and any possible claimants, to be certain that the assets of the decedent are distributed fairly and in accordance with the law.

61
Q

The court will appoint a personal representative

A

to administer the affairs of the decedent and distribute the assets according to the law of descent and distribution.

62
Q

All property passes to

A

a surviving spouse if there are no lineal descendants or no lineal descendants of both spouses. Lineal descendants are persons who are in direct line to an ancestor, such as children, grandchildren, and great-grandchildren. If there are lineal descendants who are not lineal descendants of both spouses, then the surviving spouse receives one-half of the property. The balance of the property is divided among the lineal descendants.

63
Q

The law of descent and distribution does not apply

A

if the decedent dies testate (left a will). Instead, the court will conform the appointment of the personal representative named in the will and require the personal representative to show that the terms of the will are followed in the distribution of the assets.

64
Q

Homestead Property

A

The Florida Constitution defines a homestead (or homestead property) as, “any real property owned by the head of a household who resides therein.” This includes women or men who live alone. Either spouse can claim to be the head of household.

65
Q

Homestead Property Protection

A

The Florida Constitution exempts homestead property from the execution and forced sale of the property to satisfy personal judgment liens, such as personal loans or credit card debt, which are held against the head of a household. These constitutional homestead rights are automatic to those who qualify and do not require the filing of any documents in the public records.

66
Q

Debts That Are Not Protected

A

However, homestead property can be foreclosed upon for debts that are related to the property and debts entered into jointly by both spouses. In other words, homestead property can be sold at foreclosure for nonpayment of any lien, except a judgment lien against the head of household.

67
Q

Limited by Property Size, not Value

A

The amount of property protected by homestead rights is limited to one-half acre if the homestead is located within a municipality or to 160 acres if located outside of a municipality. The value of the homestead is not considered. The property is greater than these limits, the amount over these limits may be foreclosed and sold to satisfy creditors.

68
Q

Distribution Upon Death

A

Special rules apply to the distribution of homestead property upon the death of an owner. If the homestead were owned as separate property of the decedent, the surviving spouse is entitled to a life estate; however, if there are lineal descendants, they become vested remaindermen. A related provision entitles the surviving spouse to $1,000 worth of personal effects, $10,000 worth of home furnishings, and all automobiles.
The homestead rules override any attempted disposition in a will, with only one exception. The homestead property may be left in fee simple to the surviving spouse if there are no minor children. Homestead rights are a provision of the Florida State Constitution and take precedence over the law of descent and distribution, and elective share.

69
Q

Loss of Rights

A

If the homestead is abandoned, homestead rights are lost.

These rights are not lost as a result of divorce if there are minor children who continue to live in the property. Both spouses must sign any conveyance or mortgage of homestead property, even if the property is owned as separate property by only one spouse.

Do not confuse homestead rights with homestead tax exemption, which is a statutory benefit rather than a constitutional right. The homestead exemption is not automatic.

70
Q

Condominiums

A

Consumer demand for condominium ownership is especially popular in areas where desirable land is scarce. Condominium ownership has social and economic advantages over apartment living. Condominium ownership is compatible with the lifestyles of people who desire time to pursue leisure activities and freedom from the personal responsibility for maintaining the exterior of their properties.

71
Q

Condominiums provide for

A

the ownership of individual units within a multiple-unit building. Each owner owns a three-dimensional airspace within the building and has title to airspace within the walls, floor, and ceiling of each unit.

72
Q

The ownership of each condominium unit includes

A

a fractional ownership of the common areas. The building is a common element along with the hallways, elevators, sidewalks, parking lots, driveways, landscaping, and recreational facilities.

73
Q

Master insurance policy

A

insures the common areas and protects individual owners against lawsuits that may arise from accidents that occur in common areas. Individual unit owners must provide their own coverage for the interior of the unit and personal property.

74
Q

Ownership of the condominium unit can be

A

in fee simple, or any other estate in real property recognized by law. Each condominium unit is mortgaged, taxed, and sold independently of other units. In the event of default by a unit owner, the individual condominium unit is foreclosed and the unit is sold without affecting the other condominium units.

75
Q

Condominiums F.S. 718.503

A

requires any contract for the sale of a condominium to contain certain disclosures with specified language regarding the rights of the parties. Failure to include the disclosure allows a party to void the agreement.

76
Q

The Florida Condominium Act, F.S. 718

A

gives statutory recognition to the condominium form of real property ownership. By law, developers of condominiums must file a declaration to create a condominium association and execute a master deed that conveys the title to the condominium association. The declaration includes the name of the association, the legal description and survey of the land, a description of the unit owners’ membership rights and obligations, a copy of the bylaws, and other documents associated with the creation and operations of a condominium.

77
Q

Voidable agreement

A

Should the documents previously mentioned be requested by the buyer in writing and not provided by the seller.

78
Q

New condominium buyers

A

are allowed a 15-day right rescission following receipt of the above condominium documents from the developer. Resale condominium buyers are allowed three business days from the date of receipt of these documents to either rescind the transaction or proceed with the sale.

79
Q

Cooperative ownership

A

Cooperative ownership is legally quite distinct from condominium ownership. A cooperative association is a corporation that buys and owns a multiple-unit building. Shares of stock in the corporation are sold to individuals who in turn are given a proprietary lease by the corporation, which allows the shareholder to occupy specified space within the building. F.S. 719.503 requires disclosures for the resale of an interest in a cooperative.

80
Q

The cooperative association (corporation)

A

secures financing and insurance for the building. The individual stockholders divide the operating expenses and mortgage payments proportionately based on the number of shares of stock they own in the corporation. The Cooperative Act, F.S. 719, provides for real property taxes and special assessments to be levied against individual units rather than the corporation. If a cooperative shareholder fails to meet his or her financial obligations, the remaining shareholders must make up the shortage or the corporation is in default.

81
Q

Shareholders enjoy the same benefits of ownership as any other owner of real estate, which include

A
  • They may deduct their share of real estate taxes and mortgage interest from their personal income taxes.
  • They may realize equity buildup in the property due to reduction of the mortgage debt.
  • Appreciation in property value is also possible.
82
Q

The same rescission periods

A

that apply to condominiums, 15 days for new developer sales and three business days for resale transactions, apply to cooperatives.

83
Q

Timeshares

A

Timeshare property is initially organized as a condominium. Each individual condominium unit further subdivided into time periods. Typically, 50 one-week time periods per year are sold to individuals with the remaining two weeks reserved for annual maintenance and refurbishing. This is known as interval ownership.

84
Q

In the early history of timesharing in the United States

A

the typical sale was structured as a vacation lease or right to use. These were built much like hotels. The purchaser was given a right to use an unspecified unit in the hotel facility for a given period-of-time per year, for a specified number of years. The purchaser did not acquire ownership; they acquired a use right. These facilities typically allowed unoccupied units in the project to be rented by the developer on a daily or weekly basis, the same as in a hotel.

85
Q

There are two methods used in the marketing of timeshares

A

One method conveys title in fee simple to the purchaser as a tenant in common with the other timeshare unit owners. The purchaser receives a deed for the unit purchased, combined with a use agreement which identifies the week or weeks of the year the purchaser is allowed to occupy the unit. Another method involves the purchase of a tenancy for years, converting to a tenancy in common after a specified number of years, usually 20 to 40 years.

86
Q

Timeshare ownership agreements

A

include a waiver of the right of partition. This waiver prevents the owner of a timeshare from forcing the sale of the entire unit. The ownership agreement also provides that each owner is responsible for the payment of his or her share of the real estate taxes and maintenance.

F.S. 721.065 requires disclosures for the resale of an interest in a timeshare.

87
Q

Provisions of the Timeshare Acts (F.S.721)

A

was enacted in 1981 to regulate the industry and to help prevent fraud and deceptive sales practices. The law is considered to be a model for other states,

88
Q

The provisions of the Timeshare Act include the following:

A
  • Developers and sellers must provide a copy of the sales contract to each purchaser, which must contain specific information regarding charges for reservations, maintenance, and management.
  • Timeshare public offering statements must be provided to each purchaser and must be filed with the state of Florida. All advertising must be filed with the state of Florida. In addition, there are specific limitations on representations that may be made in any advertising.
  • All contracts for the resale of timeshares must clearly define the rights and obligations of all parties to the contract.
  • The name and address of the managing entity of the timeshare plan, disclosure of closing costs, and a statement that discloses the existence of any mandatory exchange program membership must be provided.
  • A ten-day cooling off period must be provided for the purchase of new and resale timeshares, during which time the purchase contract can be canceled without penalty or obligation by giving written notice to the seller (owner-developer).
89
Q

CAM License Required for who?

A

Salaried Manager.
CAM license, issued by the Division of Florida Condominiums, Timeshares, and Mobile Homes, if he or she performs management services.

90
Q

What are the management services?

A

These services include controlling or disbursing funds, preparing budgets or other financial documents, assisting in the noticing or conducting of meetings, coordinating maintenance, and other day-to-day services involved with the operations of a community association. A residential community association is defined as one containing more than ten units or an annual budget or budgets of more than $100,000.

91
Q

Community Development Districts (CDDs)

A

A community development district is a local unit of special-purpose government authorized by F.S. 190. A CDD provides a mechanism for the financing and management of new communities. The district is authorized to fund, plan, establish, acquire or construct, operate, and maintain specific public improvements and community facilities on behalf of its residents

92
Q

CDDs are governed by

A

a board of supervisors, elected by the landowners of the district. The board has the power to levy and assess an ad valorem tax on the taxable property in the district.

93
Q

The board hired a district manager

A

who is responsible for the daily operations of the CDD. After six years, the governing of the district must begin to transition to the residents.

94
Q

F.S.190.048

A

requires that disclosure of the power to impose tax levies or assessments be provided in the sales contract of real estate within a district.

95
Q

Homeowners’ Associations

A

F.S. 720 defines a homeowners’ association (HOA), or association, as a Florida corporation responsible for the operation of a community or a mobile home subdivision in which the voting membership is made up to property owners.

HOA membership is a mandatory condition of property ownership.

The HOA is authorized to impose assessment that, if unpaid, may become a lien on the parcel.

The term “homeowners’ association” does not include a community development district or other similar special taxing district.

96
Q

The HOA must maintain official records that include:

A
  • Association bylaws
  • Articles of incorporation of the association
  • Declaration of covenants
  • Association rules
  • Board of directors’ meeting minutes for past seven years
  • Member roster with mailing addresses and parcel identifications
  • Association insurance policies for past seven years
  • Association contracts and bids
  • Tax returns and financial and accounting records for past seven years
  • Plans, specifications, permits, and warranties related to common area improvements or other property maintenance.
97
Q

Required HOA Disclosures

A

F.S. 720.401 requires that a homeowners’ association disclosure be provided to buyers when membership in such an association is required. If a sales contract does not conform to the requirements of this subsection in Florida law, the buyer may void it within three days, or prior to closing, whichever comes first.

98
Q

Initial developers and subsequent owners must disclose to a buyer who signs a contract that:

A
  • The owner is required to be a member of the HOA
  • Recorded private restrictions govern the use and occupancy of the property.
  • The owner is obligated to pay assessments to the HOA with failure to pay leading to possible lien recording and enforcement with foreclosure.
  • There may be land use and/or recreation fees. If so, the amounts of such obligations must be disclosed in the contract.
  • The developer may have the right to amend the restrictive covenants without the approval of the association membership.