Condo Changes Coming to a Form Near You
The updated FR/BAR Condominium Rider, (CR-6xx_A) and CRSP Condominium Addendum (CRSP16xxx_F) include the required language.
ORLANDO, Fla. – Every year it seems like there is a new condo law. And every year there is. Here’s what you need to know about two important updates this year that will affect your practice and forms that started on October 1, 2024. The forms are available on Form Simplicity.
- Non-Developer Disclosure
Florida Statute 718.503(2)(d) provides statutory language that must be given to buyers in a residential condominium sale, the Non-Developer Disclosure. This is not new; these disclosure clauses are already included in the Condominium Rider/Addendum provided by Florida Realtors®. Each clause contains a list of documents to be provided to a buyer including the most recent “YEAR END FINANCIAL INFORMATION”.
If you have asked yourself, what does “most recent year end financial information” mean?, then you are not alone. This question has been fielded by the Florida Realtors Legal Hotline for many years. But now we have some clarity under the most recent condo law. The language has been modified to state the “ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET”. This means that sellers will provide these forms to a buyer.
- Condominiums Created Within a Portion of a Building or Within a Multiple Parcel Building
Florida Statute 718.407(5) creates a required disclosure to be provided to buyers purchasing a condominium created within a portion of a building or within a multiple parcel building. The new disclosure is for the buyer to acknowledge they understand terms relating to the purchase within a building. This could apply to your condo-hotel transactions.
There is nothing to fill out, the seller needs to provide the disclosure to the buyer. Keep in mind it is an acknowledgment of the terms relating to their purchase. It does not give the buyer a right to terminate the contract. Buyers should research and use due diligence before signing the contract and accepting such terms. If unsure, a buyer should consult their legal counsel to be advised.
The good news is that these disclosures and updates have been taken care of for you. The updated FR/BAR Condominium Rider, (CR-6xx_A) and CRSP Condominium Addendum (CRSP16xxx_F) include the required language and are available on Form Simplicity. As a reminder, we strongly recommend you use the most updated versions of the Florida Realtors forms to ensure you are complying with the law.
Heather Rhodes is Associate General Counsel.
© 2024 Florida Realtors®