This is the first issue of
Greenberg Traurig's Condo Trends, a newsletter
focused on issues affecting condominium development, operations and
regulatory issues. If there are any specific topics you would like
to see addressed in future issues,
please let us know.
The Incredible Bulk: Has the bulk buyer bill lived up to the hype?
know, this past summer the Florida legislature adopted the
Distressed Condo Relief Act to protect buyers who purchase more than
seven units in a condominium from being defined as developers and
inheriting certain "developer" liabilities. When the real estate
market took a dive, distress buyers and lenders were hard pressed to
jump into a pool of surviving developer liabilities. The press has
credited the change in law for the spike in bulk purchases (though a
building consensus that a pricing floor has been established may
also be a significant factor).
the momentum increase in 2011? Some say it will save the condominium
market while others say it's plagued with ambiguity and a short
shelf-life. The Act, by its own terms, is due to sunset on July 1,
2012, so as written, bulk purchases closing after that date will
receive no benefits.
tuned for more on this topic as a glitch bill is already in the
works for the Act.
The Association's Arsenal of Remedies has Expanded - that may not be
all good news for developers
Maintaining the quality of the condo while you're still selling
inventory units can be a challenge, especially when associations are
plagued with high delinquencies. As a result (and with a bit of
irony), associations' problems are now, more than ever, developers'
problems (as distinguished from problems that developers were
typically blamed for).
the recent law change, associations (even those that are developer
controlled) are now empowered with the right to collect rent from
tenants (rather than allowing it to go to a delinquent unit owner
landlord), suspend certain use and voting rights of delinquent unit
owners and remove from office non-paying directors. A word of
caution, however - as a unit owner with assessment obligations,
these consequences could be applied against developers, as well, if
they get behind on assessments.
When is Enough, Enough? Whether the development was a success or
failure, when can final distributions be made and the entity
can you make final distributions and dissolve your developing
entity? Before you distribute and dissolve, keep in mind that your
creditors and liabilities have to be accounted for. And, yes,
warranty claims, as specious as they can be, need to be included as
a potential liability. For some of the potential ways a creditor can
claw back distributions, see
Section 726.110, F.S. on fraudulent
Calling all Condo Techies! Here are a few apps that
might increase your work productivity (or decrease it,
depending on which ones you use).
Scan me your business card...
ScanBizCards is an app that helps you scan business
cards directly onto your phone. Save time and paper! Find out more at
should probably jot that down...
Looking for an IPad app that allows you to handwrite
notes onto your IPad? Try
Penultimate - a popular and
easy to use app.
Long to quote provisions from the Condo Act 24/7
(hopefully not)? Look for "FLCondo" in the app store
and you can carry the entire Condo Act with you.
Greenberg Traurig, P.A. | 333 Avenue of the Americas | Miami, FL
Gary A. Saul, Esq.
Meredith L. Singer, Esq.
Staci J. Rutman, Esq.
Sabrina E. Little, Esq.
Greenberg Traurig newsletter is issued for informational purposes
only and is not intended to be construed or used as general legal
advice. Please contact the author(s) or your Greenberg Traurig
contact if you have questions regarding the currency of this
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you decide, ask for written information about the lawyer's legal
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