Condo Insurance No Longer A Legal Requirement

New legislation (SB 1196) looks set to help condo buyers during these tricky times. It also encourages bulk buyers of condo inventory by removing some of the liablity previsously associated with such purchases, ie. they will no longer be considered the communities new “developers” for the purposes of lawsuits just because they now own a portion of them.

The Distressed Condominium Relief Act went into effect on July 1, 2010. The new law, signed by Governor Crist on June 1st, broadens the power of Florida condo associations and assists those currently facing financial difficulties, helping bulk buyers in particular, in that process. 

Other useful provisions in SB 1196 include the following:

Condo insurance: for the interior of the unit no longer required (doesn’t mean you’d be stupid not to get it).

Cost of ownership lowered: by repealing the requirement that owners purchase individual owner insurance coverage;

Sprinker retrofits: no longer mandatory in condos over 75 feet high;

Lenders pay more back fees: on bank owned condo foreclosures. (Previously limited to 6 months.)

Delinquent owners get dinged: condo owners more than 90 days delinquent can now be denied use of common and recreational areas;

and here’s the biggie:

Diversion of rent: COAs can now divert rent from owners who are foreclosing and not paying their mortgages and HOA fees directly into the coffers of the COA. This one will be interesting. Watch this space.

For more information on buying and selling Orlando condos, contact Condo Metropolis on: 407-290-3408.

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