Mid-2025 Condominium Update
with Attorney Richard Swank
Florida Realtors® Associate General Counsel
June 30,2025
TRT: 46 minutes 18 seconds
Video Transcription

Richard Swank directly addresses camera:  Good afternoon, Florida Realtors®, and welcome to your Mid 2025 Condominium Update. My name is Richard Swank and I am the Associate General Counsel. If you remember back in March, we did another webinar where we talked about the condo rider, and we said that if there were any changes that came down, during the legislative session, we would have another, webinar.
And we are nothing if not people of our word. That's what we are doing today. Now, as Margy said, we are going to talk about the bill that the governor signed last week that goes into effect tomorrow. But the bulk of this webinar is going to be about the changes to the condominium rider Addendum A. Now it's going to be a few minutes before we get to that.
So if you want to pull up the original rider or if you want to go see the supporting materials on our website, like the like the Red line, please feel free to do that so you can follow along to see the changes. Now when you bring up the red line, don't freak out. It's a lot scarier looking than it actually is.
All right. And you'll see in a minute that the though we've done a lot of changes to the rider. They're excellent and they should help your practice quite a bit. Now before we get on to that, we have to do our antitrust reminder is any time when we all meet together. Florida Realtors® is devoted to improving the competitive business conditions of the real estate industry.
This meeting may include real estate professionals and other industry stakeholders who compete with each other or work for competing businesses. Florida Realtors® is committed to conducting all meetings and events in a professional, ethical and lawful manner, including in adherence to all antitrust laws. To that end, the topics for this meeting will focus on advancing the interests of real estate professionals and consumers of real estate services.
Increasing competition. Reducing risk for all parties involved in real estate transactions and sharing industry. Insights on industry best practices. The following discussion topics are always prohibited. Agreements to fix fixed prices. Limit product or service offerings. Allocate geographical territory or customers, and refuse to deal. Any discussion inconsistent with this policy will not be tolerated. Now, obviously we're not all in the same room together today, but if you put a question in the chat, please be mindful of the antitrust issues and don't put anything problematic in the chat.
Thank you. All right. So as I said we're going to be talking about the condominium rider. There were two big changes to the condominium rider. Well, I say big, but the weird thing about it is that the changes that were created by the bill that was signed last week are very, very minimal. All right. Very minor. Okay. There are a lot of changes to the way the associations can finance assessments and other things, but the changes to the rider itself were fairly minimal.
Most of what I'm going to be talking about today are from the Florida Realtors®, Florida Bar revision your changes. All right. We include the statutorily required changes from the bill. But for those of you who don't know, the Florida Realtors® and Florida Bar have a joint committee. And throughout, every year they get together and they review suggestions for how the forms might be changed from the forms in-box, from the Florida Realtors® Legal Hotline, basically anywhere.
And then they impanel committees that look at the contract and look at the riders and then make suggestions as to how they can be improved. We decided to go ahead and do that. This is actually a revision year, so we decided to do that now. Why are we doing it now when the, statutory changes are fairly minimal?
Well, we didn't want to do it piecemeal, okay? We wanted to do it all at once. So you guys and I get to learn from the firehose today. But again, as you'll see, the changes are very positive and they should help you out a lot. All right. But before we get to that, we're going to go ahead and talk about the condominium bill, specifically what we call Condo 4.0.
Now why do we call it Condo 4.0? Why do we refer to it as if it were, software? All right. The reason is because after the Surfside collapse, the legislature started a series of bills that, were designed to make condominium safer, okay, because they had a new bill every year. We decided to go ahead and just designate them one, two, three, and four so that it would be easier for folks to figure out what had changed and when.
All right, quick refresher. Condo 1.0 was Senate Bill 4D. It was passed in 2022. It was establish. what we all know now is the Structural Integrity Reserve Study, the Milestone Inspection and also funding for repairs and disclosures. Condo 2.0, which took place in 2023, talked about collection of reserves disallowed, waiving a reserve, reducing reserve funding for the SIRS and clarified SIRS requirement, and then condo 3.0, which came along in 2024, increased accountability and transparency, introduced criminal penalties for bad faith and increased DBPR’s ability to address complaints.
Now, I addressed condo 3.0 during our last webinar, but for those of you that, didn't attend that there was a very important thing that past during Condo 3.0 that I'd like to revisit.
All right. What condo 3.0 did was that it expanded the number of associations, which must have a website to any association with 25 or more units. Previously, it was 150 or more. The statute says an association managing a condominium with 25 or more units shall post digital copies of the documents specified in subparagraph two on its website. This takes effect on January 1st of 2026, and when it goes into effect, it will apply to 92% of all associations in the state of Florida.
All right. So what is what does this website have to be? It must be an independent website accessible through the internet by username and password and owned and operated by the association. At the very least, the username and password will be held by the members of the association, the owners of the association. We're hoping that some of these associations make a publicly available website for prospective buyers and agents, but that is going to be up to the individual association and what must be on the website.
It must include condo declarations, the bylaws of the association, plus any amendments to those bylaws, the articles of incorporation, the association rules, the list of all association contracts, annual and proposed budgets, the financial report and you'll see that's in bold and italicized. Put a pin in that. We'll come back to that in just a second. And monthly income and expense statements.
The certification of directors, meeting notices and agendas. Milestone inspections and SIRS and building permits. Now, if these documents look familiar, it's because they're very similar to the documents that must be disclosed and produced to us prospective buyer. So once this statute goes into effect on January 1st, 2026, it's hoped that all of these documents will be in one place, easily accessible by, at the very least, the sellers and possibly their agents and prospective buyers.
Okay, so that was the big change from condo 3.0. All right. Now we're going on to condo 4.0. It goes into effect July 2025 July 1st, 2025. And yes, that is tomorrow. If you want to see the entire thing, it is House Bill 913. The biggest thing that it does, as far as our members are concerned, is that it increases the perspective buyer review period to seven days, and that is seven business days, not seven calendar days.
All right. It changes the way in which condominium associations can finance large reserve requirements. And it adds finance documents to the year in financials a buyer is entitled to review. Remember I told you to put that a pin in that. We're going to talk more about it in just a minute. But all of the various different documents that a buyer might need okay.
With respect to the changes that are implemented by condo 4.0 should be included in the year and financial documents. All right. Now I'm going to go over condo 4.0. But I will tell you this is a very, very cursory review. Most of this information is not stuff that our members are going to be going to need during a transaction.
All right. This is stuff that if you have any in-depth questions about it, please review it with an experienced condominium association attorney. These attorneys are, as we speak, reviewing these this information and preparing to answer questions for their associations and hopefully members of the public. But we will go over them very quickly right now, before we get to the form.
Condo 4.0 is designed to increase transparency. It was to increase financial flexibility because, as we've seen, some of these associations were having problems financing their, structural integrity reserves and the repairs required by the milestone inspection. Condo 4.0 is supposed to help with that where it deals with milestone inspections, the structural integrity reserve studies, and how they the associations can deal with their reserves.
Okay. It also deals with conflicts of interest for contractors and inspectors. Basically, if a contractor is now going to do a milestone inspection, but they are also in the business of doing the repairs that that inspection might turn, turn up. They have to disclose to the association that they may be bidding for those particular repairs. Okay.
So basically it tries to help with conflicts of interest and not have inspectors, you know, basically come up with, repairs that are going to be very expensive, that they are the only ones that they can do. The last thing it really does is it talks again about 718 .407 Florida Statutes, the vertical subdivisions section, okay, that was added as part of condo 3.0.
We'll talk about it a little bit when I get to it. You may also note you know these things as condo-tels. Okay. But the more the preferred nomenclature is vertical subdivisions. All right. Now transparency, the association website which we talked about must include all approved board of directors minutes for the preceding 12 months. Also, the association can now fund reserves related to the structural integrity with assessments as they have been doing special assessments.
Big lump sums a line of credit that's new or loans that's also new information must be included in the association's annual financial statement, which must appear on the website and be disclosed to potential buyers. We'll show how that works in just a minute. Okay. Now again, there are a lot of unanswered questions about this particular section with financing reserves.
These are not questions we are going to be able to answer at this particular point. And these are questions that are probably going to take some time to unfold. We've already gotten preliminary questions about that from some of our members. Okay. But you're going to have to consult any associations you deal with and how they intend to to work with this.
Now, the biggest change, as I said, as far as our members are concerned, is that the purchasers three day right of rescission for a sale by a unit owner is now extended to seven days, which does not include weekends or holidays. All right. That is a very, very long time. When the bill was filed. We understand that it originally was 14 days.
This was negotiated down. Now it sounds again like a long time. But remember, prospective purchasers now not only have to look at the condo declaration and things of that nature, they also have to look at the SIRS, and the milestone inspection and and potentially a turnover report. So seven days, while it seems like a long time, was designed to give the buyers more time to review the voluminous documents that they have to review.
All right. Financial flexibility. This first one, milestone inspections and structural integrity or reserve studies have now been narrowed. Narrowed to buildings. Three habitable stories or more. This is a question we got a lot on the legal hotline. All right. I live in a condo, or I'm dealing with a condo that has two habitable stories, but it's three stories tall in the bottom story is a garage.
Okay. Since the garage is uninhabitable, it would no longer be subject to sirs or milestone inspections. All right. This one's a little controversial. Read an article about it a couple of days ago. The SIRS deadline has been extended to December 31st, 2025 for any condo existing prior to January 1st or July 1st. I'm sorry, 2022. Originally it was 12-31-2024, which, as you probably know, was six months ago.
So, some people are upset that this may be, rewarding associations that drag their feet, but that's between the association and its members. Now, the deadline is 12-31-2025. The end of this year for budgets adopted on or before December 31st, 2028, unit owner controlled associations can pause or reserve or reduce reserve contributions for two annual consecutive budgets.
Okay, again, something that should be discussed with the condo association attorney. Associations that have completed their milestone inspection can delay SIRS for two consecutive budget years to prioritize repairs and maintenance so they can repair the stuff that's in the milestone inspection before they do their SIRS, and possibly reduce the amount of, reserves required because they've already repaired those issues.
Okay. It also extends the SIRS exemption to four family dwellings with three or fewer habitable stories above ground. It used to be single to three family. Now it's single to four families. So again reducing the number of associations that are subject to SIRS. All right. Condo 4.0 reserves. They require that service include, at a minimum, a reserve baseline funding plan that ensures the reserve cash balance stays above zero.
It allows reserve funds to be invested in certificates of deposit or deposits in banks and credit unions. That's also new. Okay, more flexibility to where it can be invested. It increases the monetary threshold for nonstructural reserve items, roof replacements, painting, resurfacing, parking lot things along those lines, or any other item from 10,000 to $25,000 and will be indexed for inflation.
These nonstructural reserves can be waived by a majority of members and unit owner controlled associations only. Okay, so again something to work with your, management company or condo association attorney to make sure that you are in compliance with these particular issues. All right. Now I know again, I went very, very quickly, and it's a very quick overview of what Condo 4.0 does.
I would suggest that if you have any further questions okay. Go to the Department of Business and Professional Regulations condominium website. You see the link right there. Condos dot my Florida license.com. I use this for reference frequently. It is very, very good. DPR has done an excellent job in preparing this website. So if you have any further questions about kind of the nuts and bolts of condominium association, governance, make sure you take a look at this website.
All right. Now we're going to move on to the condominium rider. I know, even though I'm only talking about addendum A to the Florida Bar., and ASIS contracts eventually I'm also going to talk about the, CRISP condo rider and also the co-op rider which was changed as part of condo 3.0 and 4.0. Okay, so what does the change to addendum A do?
All right. First, it includes the changes required by statute, which as you will see is very minimal. And we limited this webinar to only those changes. It would have been less than five minutes long. And I'm not kidding. But anyway it fixes typos from previous condominium bills. I'll talk about those a little bit. There are some lingering issues with the language in the statute.
We try to make sure to fix those. It includes the revisions that are recommended by the Realtor® attorney joint committee as part of its normal multi-view review process. So yes, you would have gotten an updated condo rider this year, whether there have been statutory changes or not. But because there were, we decided to do them all at one time.
All right. And these changes are designed to increase clarity and usability. I know at first it's not going to seem that way, but once you've seen what the changes do, I think you'll see it really helps in the usability of of the forms. All right. So now if you have pulled up your old condo rider or the, red line, please make sure to pull it out now because we're going to start talking about the individual sections of the rider that changed.
All right. Now one of the questions we get a lot on the hotline. What if the association is part of a master association, a larger condo association or HOA. All right. That has the condominium as part of a, one part of that. Well, one subset of that. All right. Do I have to use an additional rider or what have you?
Okay. One of the reasons why I think this question is so confusing is because this language right here was buried between paragraph three B and three C, if property is part of a homeowner's association and see rider B, etc.. Okay. And didn't give really instructions as to what you were supposed to do. So the association taking a look or I'm sorry, the committee taking a look at that said we need to do better.
And this is now how Condominium Rider A will start. All right, a much more robust section. You'll see the paragraph there. If property is part of a master or other homeowner's association, seller shall complete rider B homeowner's association. Community disclosure for further information, including additional assessments and fees. If the property is part of more than one condominium association, seller shall also complete a separate rider A condominium rider for each condominium association.
So answering that question, we used to get a lot on the hotline. If there's a master association, yes, you need more than one rider. Okay. Now, in addition to this. All right, the, committee decided maybe it would be a good idea to identify the association and any management company right up front. This is right at the top of the new rider.
All right, the condominium association to which the condominium rider is applicable. And any management company and to which assessments, special assessments and or rent and use fees are due and payable. And there you see it, the name of the association, the contact person if known at the association, their telephone number and their email address. Same thing with the management company.
Name of the management company. Contact person, phone number and email. This is right on the front of the form now, so you can't miss it. Also, remember I told you 92% of all associations in the state of Florida are going to have to have a condominium association website. You can put that right here, right on the front of the form.
Additional contact information can be found on the association's website, which is and you put the link right there. All right. Now you'll also see the condominium association is like is defined there. All right. Capitalized and in quotation marks. But we wanted to make it sure make it clear that this particular rider deals with only only one association.
So as you will see, as we go forward, the term condominium association is used instead of just association. And that starts with paragraph one. All right. You'll see that right there. Condominium Association's approval of buyer. All right. Now the changes to this paragraph were rather minimal. But again it dealt with something that a confusing issue that we would run into on the hotline a lot.
The old version said that the seller had to initiate the application process for the buyer, but it didn't go into any detail as to what that meant. Okay, the deadline provision is still the same, but now clarification has been added. All right. So now, initiating the process includes providing the buyer with a copy of the current application for approval.
All right. So you have the seller has to dig up the application and and give it to the buyer. So the buyer can start the process. Now can the buyer just sit on their hands and not engage in that process? No. We also added additional language that said that the buyer shall promptly apply for such approval. So the buyer, once they have received the application, has to get the ball rolling.
Okay. And those are the two changes for this particular paragraph. All right. Now the next paragraph was almost completely reworked. This is the right of first refusal section. For those of you who don't know, a right of first refusal is somewhere in the condominium rules. If a condominium unit goes on sale, it gives the association and or the members of the association the right to bid on it first.
Essentially, what happens is that once the contract has been negotiated, the association and or a member of the association can step into the shoes of the buyer. They take over the same terms of the contract. The buyer unfortunately no longer gets the unit, and then the association of the member buys the unit under those terms. Okay. We have again streamlined this section so that it's easier to read.
All right. First, whether the condominium association has a right in 2A then whether the members have the association right in 2B, then if either of the the association of the members have the right, then the, this is how the right will be triggered and, how the parties have to engage with the association and or the members to make sure they know that the so that the, property is, under contract and that if they want to trigger the right of first refusal, then they have to act.
All right. Paragraph 2D says that if the members of the association trigger the right, then basically this contract ends, it is terminated. And then the other parties take take over the sale. Paragraph 2E says that if either the association or the members fail to exercise the right, then this contract just goes on as if it, had always done in the past.
All right, now you'll see a highlighted part there with nothing in it. If you take a look at the red line, you will notice there used to be language in there that said that if the right of first refusal is triggered, then the original agents for during the sale, the original brokers all right were deemed to be the procuring clause of the sale for purposes of compensation.
Okay. We have removed removed that why? Largely because of the NAR settlement. All right. Which no longer allows MLS offers of compensation also requirements that there is a preference for buyers and sellers to enter into written agreements dealing with compensation with the party that they represent. All right. These documents should talk about how the parties are compensated.
All right. Adding an additional section in here about procuring cause was deemed to be confusing and possibly unenforceable. So the language was removed. Practice tip if you are dealing with an association that has a right of first refusal and you want to make sure that you get paid, if that right of first refusal is triggered, make sure you use the additional term section of your compensation document to specify that you will get paid, even if the right of first refusal is triggered.
All right. Okay. Now we're moving on to the next section, paragraph 3A. All right. This is the old version. All annual assessments levied by the association and rent on recreational areas, if any, shall be made current by the seller at closing. And the buyer shall reimburse seller for prepayments. All right. This was reworked primarily to bring it in line with the statute.
Chapter 718. And now it says all regular periodic assessments levied by the condominium association. Those are the regular assessments that are paid by the members monthly, quarterly, biannually or whatever, and rent on recreational areas, if any, shall be made current by the seller at closing. That, of course, is not changed. Association assets and liabilities, including association reserve accounts, shall not be prorated.
So in other words, this section does not affect those particular reserve accounts which may affect the members. All right. They wanted to specify in this section that that would not be affected. Okay. Now we're going on to paragraph three B here's the old version. Seller shall, at closing pay all fines imposed against the unit by the condominium association as of closing date and any fees the association charges to provide information about the property assessments and fees.
This was updated just a little bit. You'll see originally it says unit that was changed to property. Why? Because fines may be imposed against something other than the unit itself. There may be parking fines or something along those lines. We wanted to specify that it's the entire property subject to the condominium. All right. And you must remedy all open violations of rules and regulations.
Notice to the seller. So in other words, if the association has put the seller on notice that they are violating a rule, maybe because they have plants hanging out on the balcony or because they painted something wrong or whatever, all right. The seller has to remedy those before closing so that the buyer is not subject to those issues.
And the seller has to pay any outstanding fines. Right now. The next section, paragraph 3C, has been completely reworked. And it is this section dealing with special assessments. Now, one of the reasons why it's been reworked is because special assessments have become a real hot button topic, not just because of, issues with the condominium that may have already existed, but because of SIRS milestone inspections and the like.
Okay, now if you remember, the old version of the special assessment paragraph said that the seller had to go back and look at the the minutes, of the, condominium meetings for the previous 12 months and find out whether any, special assessments had been discussed, if they had been the seller had to disclose them, and if they didn't disclose them, then they were on the hook to pay them.
Okay. Many people thought that that was too onerous, a thing for the seller to have to do. All right. So this was reworked slightly. All right. So now we make clear that if the condominium association has levied any special or additional assessments as of the effective date, when the property goes under contract, then the buyer or the seller, and if this is left blank, then the seller shall pay all such assessments in full prior to closing.
Now I want to caution some, make another caution. All right. Many times assessments and payment of assessments are dictated by the association and or the lender. Okay. So just because the parties agree to something in this particular section does not necessarily mean that it is going to happen because the the association, the lender may require, payments to be made at or before closing.
We've done the best we can to try to help the parties work through this themselves, but they may not be able to because of things that are outside of our control, parties that are not subject to this contract. All right. Second, if the condominium association levies any special or disloyal assessments after the effective date but prior to the closing date, then the buyer or seller seller, if left blank, shall pay all such assessments in full prior to closing.
So this is in the, you know, however many days between the contract going under, property going into contract and the closing date. All right, notwithstanding the section, the provisions of paragraph 1 or 2 above, if any special or additional assessment may be paid in installments. So in other words, you know, $300 a month or whatever. And the condominium association will allow the buyer to assume the installments scheduled to be paid after closing.
See again, there's that language that says the association has to permit this. Then seller shall, prior to that closing, pay all assessments which are payable to on or before closing date. And then the parties can agree whether the buyer can take over those payments after the closing date, or whether the seller has to pay all of those. But you'll see the the, bolded language there if seller is checked, or if the condominium condominium association does not allow the buyer to assume installments scheduled to be paid after closing, the seller shall pay the special or additional assessments in full prior to at the time of closing.
All right, so if the association says no, the seller may still be on the hook. Just be aware of that. Make sure your seller has a chance to read that bolded language. Now the language in paragraph C-4, all right. Used to be at the beginning of the paragraph. We moved it to the end. A special additional assessment shall be deemed levied for purposes of this paragraph three on the date.
when such assessment has been approved as required for enforcement pursuant to Florida law and the condominium documents listed in paragraph five. All right, which we'll get to in just a second. Seller is aware of the following special or additional assessments that have been levied by the condominium association or discussed at a board meeting in the 12 months prior to the effective date.
And then you must include the purpose of the assessments and the amount if known. So the seller still has to disclose any assessments they know about, but it does not impose the additional requirement that seller go rummaging around and try to find, minutes of meetings and things along those lines. Now I hear you saying, what if the seller is withholding that information?
They know the information, but they don't tell it. Okay, we have added a section to the to the, rider coming up in just a couple of minutes where the buyer, if they basically don't trust the seller, can ask for additional documents. But we'll get there in just a second. Now, I'm not going to talk about paragraph four because we didn't really change anything in paragraph four.
So now I'm going on to paragraph five. And this is the non developer disclosure. All right that you guys are familiar with. That is really basically not changed all that much. Over the past over the over the past several years. All right. And you'll notice this is what I said. If the webinar had dealt only with the statutory changes, it would be five minutes long.
Because the stuff that you see in, highlighted is pretty much the only thing that the, condo 4.0 changed. All right. The seven days excluding Saturday, Sundays and legal holidays. And then they like the word before rather than prior to. So that's pretty much all they changed there. Also we change we fix the typo at the end, the year end financial statement and annual budget.
We went back to the original statutory version. And that's what exists in the statute statute right now, even though elsewhere in this disclosure they call it year end financial documents. All right. So different associations do their financial documents differently. So make sure that your seller is familiar with the way the financial documents are set up. So the when it's time to disclose them they can get the right things.
Now you may recall just a few minutes ago, we talked about all of these financing options that the associations now have. How is the buyer supposed to figure that out? All right. They didn't change the disclosure enough to put in things like financing documents and things along those lines. What they did instead, and this is from from House Bill 913.
It will eventually be found as of tomorrow in 718 .112. All right. They added all of those documents to the annual financial statement. All right. So they basically just lumped all those documents rather than making the disclosure even longer than it was before. They just added them into the set of documents that the buyer was already entitled to.All right. Number 718 .111 subsection 13 and 718 .503. All right. And you can see where that shows up in the disclosure itself. Okay. So all of those documents having to do with financing and how the SIRS is going to be handled, how the milestone inspection is going to be handled. All of that stuff is now in the financial statement that still must be provided to the buyer.
All right. Makes sense. Right? Okay. So next we move on to paragraphs six and seven. Here are the old versions. All right. The old version of paragraph six. We've we changed a little bit last year. We've changed it again. Was whether the buyer was requesting the documents in writing. All right. As a matter of course, after reviewing the documents, after reviewing the statutes, it really looks like the buyer is entitled to those documents, whether they request them or not.
All right. The committee changed the default, two requests under this particular paragraph. And as you'll see in just a minute, eventually got rid of it all together. Then in paragraph seven, we have the buyer's receipt of documents. All right. Complete and check only if correct. Buyer received the documents described in paragraph five above. And as you see, that's the disclosure.
Doc documents. On blank. This created a lot of confusion with the use of the rider. All right. Do we need to go back and change the rider once the buyer has received the documents? All right. This paragraph was really supposed to work when the buyer received the documents prior to the property going under, under contract. And as you see, that's basically paragraph 5A.
When the parties talk about, the buyer has already received the documents and had a chance to review them before the property went under contract, since it's already in five A and since paragraph seven was kind of confusing, it was eliminated in the new rider. Okay, now we're going to get to the section that if you've had a chance to look at the red line, probably freaked you out a little bit.
Don't worry, we'll talk about it here. And it's fairly simple. Here is the new version of paragraph six. The buyer's request for documents. Seller shall, at seller's expense, provide buyer with current copies. So we've removed the check boxes. Now the seller just provides those documents to the back to the buyer. You know, no controversy there. Now, remember I told you earlier, buyers may be concerned that the seller is not doing a diligent job taking a look at prior meeting minutes and things along those lines to determine whether there has been, a special assessment imposed.
This particular section allows the buyer to request that this is not required by statute. This is purely between the parties and is fully negotiable. So if the seller doesn't want to deal with it, they could potentially go back to the buyer and say, I don't want to deal with it or whatever, but the buyer has the opportunity to request these sets of documents.
Minutes of condominium association board meetings for the 12 months preceding the effective date, and so on. All right. Now, a lot of these documents, again, should be on the association's website as of January 1st, 2026. So it may not be as big a deal as it seems right now. The seller may be able to pull a lot of these documents off of the association website.
I did want to point out one box though. Once the last check box there. Is you guys may remember from the last webinar, there was an issue. All right, with what if the association is supposed to have a milestone inspection or a SIRS or a turnover inspection report, but they haven't done it yet? Okay. There was really no provision in there that talked about what happened.
If those documents weren't available at the time. Of the property goes under contract. All right. This section here, the last checkbox there before the fill in the blank that you can do at the bottom. All right, basically says that if any of those documents become available during the course of the transaction, then the buyer gets them at that time and then has a right to review them.
All right. And if they don't like them, they can potentially cancel. The language at the bottom of paragraph six. Again, not required by statute, but was added all right, to give the buyers the opportunity for the, to cancel the contract if they find something among these documents that they don't like. We also mirrored the seven business day.
Review period that the statute has. If these documents are provided to the buyer at the time the property goes into contract or soon after, at the same time, all the other documents are provided, then there shouldn't be a problem. The the rescission periods will run concurrently and there won't be there should not be an issue. Okay. So again this is probably the biggest section of the rider that you guys need to familiarize yourself with.
This is the one that changed the most the buyers request for documents that aren't automatically required by the statute. Okay. That was the big thing. So you know, the rest of it were all downhill from there. Okay, so paragraph 10C. Here is where we had to go back and change and fix a typo in the statute. It talks about the SIRS being at section 718 .103, subsection 26.
Either in kind 2.0 or 3.0, I forget that was actually moved to 718 .103, subsection 28, but they didn't update it in the statute itself. And unfortunately, as we'll see in just a second, the language from the statute has to be in the disclosure. If it's not exact, all right, then the buyer has the right to cancel the contract right up to closing.
So in an abundance of caution, the committee went back and changed the statutory reference. Okay. But we didn't want to leave people high, hanging high and dry. So we added an explanatory note and said that if you really want to see the definition of structural integrity reserve study, it's actually found at 718 .103 subsection 28. All right. So that was the change to fix the typo.
And here's the new version of paragraph ten D. All right. This is the one dealing with milestone inspections SIRS and turnover inspections. Same thing you guys have started to get used to this. Now again they they made it seven business days for that review as well. So make sure you check out and see that it's seven business days.
Again. Legislature didn't like prior to. So they changed it to before. That's that changed there. And we went back and changed the reference to the Sirs definition to 718 .103, subsection 26. Again, I know it sounds a little bit crazy, but this is right there in section 718 .503, subsection two E. A contract that does not conform to the requirements of this paragraph is voidable at the option of the purchaser prior to closing.
Now, if the legislature gets around to fixing these typographical errors, we will fix it in the, form. As soon as it happens. We likely will not have another webinar, but we will send out notices in our newsletter and things along those lines. So you guys know you're using the most updated form. All right. So that is the majority of the changes to paragraph two of Condo Rider A okay, I'm going to go back and talk about another change that was part of condo 4.0 that I talked about in the other webinar, because I mischaracterized the thing a little bit.
And I just want to make sure we're all on the same page. And that is section 718, point 407, the vertical subdivision. All right. Now in the last webinar, I called them condo-tels. And I found out that's not really accurate. Condo-tels can be in vertical subdivisions, but not all vertical subdivisions are condo-tels. All right.
What is a vertical subdivision? Well, basically it's a condominium where the members primarily own only the contents of their own unit. In most condominiums, the members not only own the contents of their own unit, they also own the common areas, right? The streets, the sidewalks, the stairs, the pickleball courts, whatever. Okay. And part of their assessments, of course, go to the maintenance of that. In a vertical subdivision,
A party may own everything outside the condominium units. All right. They could be part of a resort where the resort owner owns everything outside the units, which means that the owners inside the units do not necessarily have control over the common areas or how much it cost to maintain them. All right. So the legislature wanted buyers to know about this and said, basically, if you're buying in one of these vertical subdivisions, you may be assessed assessments for maintenance of the common areas that you do not control and the association does not control.
All right. Now, there's no right of cancellation in this disclosure. It's just out there to tell a buyer, hey, this is what might be going on here. This is paragraph 11 of the form, okay. Make sure if you're buying if your buyer is buying into a vertical subdivision that they have an opportunity. All right. To review this section.
Now condo 4.0 added additional disclosures. Nothing that affected this particular disclosure language. All right. But the, owner of the common areas in a vertical subdivision now have to deal better with the, particular owners to make sure that there's not radical assessments or anything like that. All right. That wraps up paragraph, Form A CR-7, Form A the condominium rider.
But these changes also affected the CRSP. All right, the CRSP dash 17 x. I didn't, copy the entire paragraph 10 E and 11 because you've already seen what this disclosure looks like, but it's pretty much exactly the same. I just put this out. I just put the highlights on the seven days so you guys can see that it changed exactly the same way that it did.
In, addendum A all right. Also paragraph or I'm sorry, condo 3.0 and 4.0 changed the cooperative addendum. All right. That's chapter 719 rather than chapter 718. All right. Basically the same exact thing. All right. It made the disclosures, gave the, prospective buyers seven days to review this information. And again, I haven't, copied the entire thing because, you can see that it basically just changes change the exact same way.
All right. It's seven days, not counting, night, not counting weekends and holidays. All right, so that's that's now the co-op addendum. Co-op - 4. All of these forms go into effect tomorrow and will be changed in Form Simplicity tomorrow, July 1st, 2025. That is when the statute goes into effect. So any contract you enter into from tomorrow, going forward, make sure you are using the new riders, whether it's a co-op, a CRSP or the CR-7 or the ASIS in the FAR BAR.
All right, now, one last thing. We took the section out there, paragraph seven, that talked about the receipt of the condominium documents. Are you helpless because you don't have that? No. A lot of people don't know that. We have a form. It's the RCD-7, okay? It is the receipt of condominium and co-op documents. So if you would like the buyer to sign a receipt, essentially saying that I have received these documents, you can use this form the RCD Dash seven.
And I've broken this down into two particular parts. All right. The first part is the documents. You're you're aware of the original condominium documents. All right. The second part is the condominium governance form, which is found on DBPR’s website. It's very generic. All right. And then the bottom of the form has the cooperative documents, like I said, the CO OP-4.
All right. You can put that in there. All right. And then the bottom part is Inspector prepared summary of Milestone Inspection and the Structural Integrity Reserve Study. All right. Those are all on this particular form now in condo 3.0......... Anyway they added a turnover inspection report. All right. And this is a report that's prepared by a developer that turns over a condo but only after a very recent date.
Okay. I think it was earlier this year, something along those lines. So we don't expect to see turnover inspection report showing up right away. But we are adding turnover inspection reports to this form. It will be the RCD-8. It should be released in the next few weeks. Okay. But until then you can use this particular form to talk about condominium documents.
And that is all I have for today. Again, I want to thank you so much for tuning in today. It's great doing these for you guys. I know it was, really tight timeframe for doing this. This particular, webinar was recorded, so you'll be able to, watch it. Should be up on our website within a week or so. I think I was told. And as of right now, the documents, the, at least the red lines are available on our website and all of the new forms will be available on Form Simplicity and wherever you get your forms starting tomorrow on July 1st, 2025. Thanks and have a great afternoon.