The Florida House of Representatives is considering a bill that would change requirements surrounding estoppel certificates issued by homeowners’ associations.
The bill, HB 203, was introduced by Rep. John Wood, R-Winter Haven.
Under the proposed law, an association would have to issue an estoppel certificate to a unit owner or the unit owner’s designee or a unit mortgagee within 10 business days after receiving a written or electronic request for the certificate. The estoppel certificate would have to be delivered by mail, by hand delivery or by electronic means to the requestor on the date of issuance.
The estoppel certificate would have to include the following information:
- The date of issuance;
- The amount of all assessments and other money owed to the association by the unit owner. The amount would be limited to amounts authorized by statute to be recorded in the official records of the association;
- The amount of any additional assessments and other money that is scheduled to become due for each day after the date of issuance for the 30-day or 35-day effective period of the estoppel certificate. When calculating the amounts that are scheduled to become due, the association would be able to assume that any delinquent amounts would remain delinquent during the effective period of the estoppel certificate.
- The amount of the fee charged by the association to prepare and deliver the estoppel certificate; and
- The signature of an officer or agent of the association.
An estoppel certificate that is delivered on the date of issuance would have a 30-day effective period. An estoppel certificate that is mailed to the requestor would have a 35-day effective period.
The association would waive the right to collect any money owed in excess of the amounts specified in the estoppel certificate from any person who, in good faith, relied upon the estoppel certificate and from the person’s successors and assigns.
The association or its agent could not charge a fee that exceeded its reasonable costs to prepare and deliver the estoppel certificate.
“However, the fee for the estoppel certificate may not exceed $200 if on the date the certificate is issued, no delinquent amounts are owed to the association for the applicable unit. If an estoppel certificate is requested on an expedited basis and delivered within three business days after the request, the association may charge an additional fee of $100. If delinquent amounts are owned to the association for the applicable unit, an additional fee for the estoppel certificate may not exceed $200. The association may not charge a fee for an estoppel certificate that is issued more than 10 business days after it receives the request for the certificate.”
The authority to charge a fee for the estoppel certificate would have to be established by a written resolution adopted by the board, or provided by a written management, bookkeeping or maintenance contract.
If the estoppel certificate is requested in conjunction with the sale or refinancing of a unit, the fee for the certificate would have to be paid to the association from the closing or settlement proceeds. If the closing does not occur, the fee would be the obligation of the unit owner, and the association could collect the fee in the same manner as an assessment against the unit. Associations could not require the payment of any other fees as a condition for the preparation or delivery of an estoppel certificate.