A new condominium rider is on the horizon (yes again). Slated to go into effect on July 1, 2025, the latest version addresses some common issues with the prior versions, and no part of the Rider was spared from the redlines.
A new section has been added to confirm that if the property is subject to a master homeowner’s association or any other homeowner’s association, RIDER B. HOMEOWNER’S ASSOCIATION/COMMUNITY DISCLOSURE is required. This is often overlooked and can lead to missing information for unsuspecting buyers. The first page of this now 6-page Rider allows the association’s contact information to be disclosed on the first page.
Part 1. Condominium Association Approval
This section has been revised to confirm that the Contract is terminated if a Buyer is not approved by the Condominium Association in the timeframe provided within the section when approval is required. This language now mirrors the termination language in the Homeowner’s Association/Community Disclosure.
Part 2. Right of First Refusal
While this section remains substantially the same with regard to the process and disclosure requirements, an amendment has been made to strike the language that obligates the Seller to pay a “full commission” to the Broker. Now, any compensation will be made in accordance with compensation agreements signed by the parties.
Similar to prior versions, the Contract is terminated, and the Buyer is refunded their deposit in the event that the association has a right of first refusal and exercises that right.
Part 3. Fees; Assessments; Prorations; Litigation
Assessments & Rents
This section allows the Seller to disclose all fees due, including any rents for recreational areas that may be due, along with the payment frequency.
Fines & Violations
The Contract now expressly calls for the Seller to remedy all open violations related to the Condominium Association.
Special Assessments
The references to pending special assessments have been removed, and this section is now focused on levied assessments, which are defined as assessments that have been approved as required by either Florida law or the specific association’s documents.
Sellers still have an obligation to disclose any assessments that have been levied or discussed in the prior 12 months in (c )(iv); however, payments are only due from either the Buyer or Seller for special assessments that have been levied. The language in this section has also been clarified to confirm how installment payments will work. There are now THREE (3) separate check boxes related to special assessments where a decision needs to be made, rather than the one in the prior versions.
Part 4. Sprinkler System Retrofit
This section remained substantially unchanged.
Part 5. Nondeveloper Disclosure
Another critical change to the Rider is the nondeveloper disclosure. The updated version allows the Buyer 7 days (rather than the previous 3 days) to review the condominium documents outlined in Part 5 of the Rider.
The language was clarified to confirm that even a buyer who receives documents prior to signing the Contract must have received them at least 7 days, not including Saturdays, Sundays, or legal holidays, before they executed the Contract.
If documents are not provided in advance, the buyer will have 7 days to cancel, not including Saturdays, Sundays, or legal holidays, after receipt of the documents. This period may extend beyond the closing date and allow for the buyer to extend closing.
If you have questions about how these updates might affect your next condo transaction, please reach out to your local real estate attorney for guidance.
