With the continued focus on aligning the FAR/BAR Condominium Riders with Florida Statute 718 governing Condominium Associations, Florida Realtors recently updated Form Cr-7 and CRSP-16. The key updates focus on adding Section 10, which addresses disclosure requirements for key structural reports.
- Why It Matters: Using the latest Condo Rider is critical – the Contract for Sale may be voidable by the Buyer if the correct Condo Rider is not attached.
Section 10: Key Structural Reports Now Required
Sellers must confirm whether the Condominium Association is required to – and has – completed any of the following:
- Milestone Inspection Report
- Structural Integrity Reserve Study
- Turnover Inspection Report
New Buyer Protections:
- Previous versions of the Condo Rider required Sellers, at Seller’s expense, to provide these reports but did not references statutory requirements triggering Buyer voidability rights.
- The updated Condo Rider now mirrors the Non-Developer Disclosure paragraph, granting Buyers three (3) business days (excluding weekends and legal holidays) to void the contract after receiving these documents.
What is the Milestone Inspection Report?
Definition: A statutory physical inspection required for condominiums three (3) stories or taller and occupied for 30+ years.
Seller’s Obligation: Sellers must state whether a Milestone Inspection Report is required and provide it if available.
What is the Structural Integrity Reserve Study?
Definition: A financial study assessing reserve funds necessary for future major repairs of common elements.
Frequency: Must be conducted every 10 years.
What is the Turnover Inspection Report?
Definition: A report completed by a Developer before handing over control of a Condominium Association to unit owners.
Contents: Includes similar information as the Structural Integrity Reserve Study.
How These Changes Impact Buyers & Sellers
Sellers: Must proactively communicate with the Condominium Association or property manager to ensure compliance with disclosure requirements.
Buyers: Gain additional documentation and insights to better assess the condominium’s structural condition before closing.
Questions about these Condo Rider updates? Contact your trusted real estate attorney for guidance.
