Florida Realtors’ Riders Being Revised
The condominium and cooperative riders will be updated on March 20 due to changes in law. The revisions are limited and address new documents buyers of certain condominiums and cooperatives are entitled to receive from sellers.
Following the Surfside condominium tragedy, the Florida Legislature passed new laws overseeing condominium and cooperative safety, including standards for inspections and reserve studies. Part of that overall plan includes new documents some buyers are entitled to receive from sellers.
What’s changing?
At this time, changes will take place on March 20, 2023. Documents changing include:
Rider A. Condominium Rider to Florida Realtors/Florida Bar Residential Contract for Sale and Purchase (and its AS IS companion)
Addendum F. Condominium Association to Contract for Residential Sale and Purchase (CRSP)
Addendum to Contract for Sale and Purchase of Cooperative
The language in all forms noted above will be the same, with the cooperative statutory citations being the only difference. The language informs buyers that they now have access to two new documents. The first is the inspector-prepared summary of Milestone Inspection of the condominium or cooperative. The second is a structural integrity reserve study or a statement that the study has not been completed.
Important Note: Not all sellers will be required to provide these documents to buyers because a) the law (referenced in the revisions) only applies to certain associations, and b) if the seller’s association has not yet obtained the inspection and/or study, they still have 23 months to do so.
What are ‘Milestone Inspection’ and a “structural integrity reserve study”?
Milestone Inspection: It’s a structural inspection conducted for life safety purposes. Generally, the requirement for associations to obtain a milestone inspection applies to condominium and cooperative buildings three stories or higher which have been occupied 30 years or more or, if located within three miles of Florida’s coastline, occupied 25 years or more.
Structural integrity reserve study: It’s a study of reserve funds required for future major repairs and replacement of the common areas which must be conducted for condo and cooperative association buildings that are three stories or higher.
Are other forms being created or updated?
Florida Realtors will create a new disclosure form to reference these latest changes to the law. Additionally, a section will be added to the existing Seller’s Property Disclosure-Condominiums (SPDC) which address these changes.
Webinar offers more information
If you’re interested in understanding the law changes and revisions, please join us for a webinar scheduled for Feb. 28, 2023, at 10:30 a.m. where this material will be covered. To find out more and register for the Zoom online meeting, click here.
Download the redline version of the changes
Reprinted with permission Florida Realtors. All rights reserved.
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This information is provided for educational purposes only and should not be construed as legal advice or representation and should not be relied upon as such. Broward, Palm Beaches & St. Lucie Realtors® cannot provide legal advice or opine about the specifics of your situation.