Connect Magazine July/August 2017 | Page 10

BY LAURA SHAY, COMMUNICATIONS DIRECTOR, ROYAL PALM COAST REALTOR® ASSOCIATION Florida Realtors® were able to claim victory this year, when they or provide any explanation of what “reasonable” was. Some helped get a bill passed that caps estoppel certificate fees, among associations and management companies took the loose wording of the law and were charging very high fees – some well over other things. $1,000. HB 483/ SB 398 cap the fees association management companies may charge for estoppel certificates, and specify a set time frame HB 483/SB 398 cap the fees that community association for when the certificate must be valid. The bills also create a management companies can charge for estoppel certificates at uniform requirement for information, so an estoppel certificate $250 for owners who are current in their assessment payments. for a property in Fort Myers would include the same information For expedited certificates, management can charge an additional as one in Miami. $100, and an additional $150 for owners who are not paid up. This makes the maximum cost of a certificate $500. Putting a cap on estoppel fees was one of the Legislative Priorities for Florida Realtors® this year, and was the focus of a Realtor® The new law also requires certificates to be valid for 30 days, and Party Call for Action leading up to the legislative vote. It was a provides a standard certificate form for the state of Florida. multi-year effort to get a handle on the unreasonable fees some community associations were charging for the certificates. Fun Fact: The legislation has roots in Southwest Florida. HB 483 was sponsored by Rep. Byron Donalds (R-Naples) and SB 398 was After getting the votes necessary to pass the House and the sponsored by Sen. Kathleen Passidomo (R-Naples). Senate, the legislation went to Governor Scott’s desk – which he signed into law on July 1st. When the news broke that the bills had passed, the Vice President of Public Policy for Florida Realtors®, Carrie O’Rourke, congratulated all of the members who put their time and effort into the problem. “After several years of educating legislators and building support in both legislative chambers on the issue of estoppel certificate fees, we brought home a huge victory for home sellers,” she said. WHAT IS AN ESTOPPEL CERTIFICATE? An estoppel certificate gives a buyer information about the fees and/or assessments that the seller pays to their community association. The association or management company provides the certificate when a property is being sold. Before HB 483/SB 398, Florida law permitted associations to charge “reasonable” fees for preparing the estoppel certificates, but did not specify 10 RPCRA.ORG | JUL/AUG 2017 DID YOU KNOW? You can get Realtor® Party mobile alerts sent straight to your phone. They will send you short text messages ONLY when they need you to take action on important real estate issues (just a couple times a year). Text the word “network” to 30644 to sign up. You can unsubscribe at any time by replying to a text with the word STOP.