The Florida Realtors have recently provided a new Condo Rider that will be in use starting October 1, 2024. The Condo Rider now reflects recent amendments in the last legislative session to Florida Statute 718, which is the governing statute for Condominiums in Florida. In particular, while many in the real estate community anticipated further revisions to the Condo Rider, the revisions focus primarily on the new definition of “Condominium Property” in the wake of the IconBrickell decision.
In a most general understanding of the court case, the IconBrickellcase centered on whether property owned solely by the hotel unit in a mixed-use condominium violated the Condominium Act. In response to the legal uncertainty caused by IconBrickell, amendments to the Florida Condominium Act were enacted, particularly addressing sections related to the definition of condominium property and mixed-use condominiums. These amendments clarified that condominium property is limited to property specifically subject to condominium ownership and provided guidance on how shared facilities should be managed and maintained. The changes aim to reduce litigation by eliminating ambiguities regarding ownership in mixed-use properties and specifying that only portions of a building submitted to condominium ownership can be classified as common elements.
The Condo Rider has now been revised to include a disclosure summary whereby the Buyer acknowledges:
1) The Condominium may have minimal common elements
2) Portions of the building may be governed outside of the Condominium’s Declarations if that part of the building is not a part of the Condominium definition
3) The Condominium Association and the Unit Owners are responsible for their shares of expenses, even if related to maintenance and operations of portions of the building not within the Condominium shared elements
As mixed-use condominium projects continue to flourish in Florida, the amendments to the Condo Rider are important for agents to understand as Buyers will undoubtedly question the additional language on the four-page condo rider. If you have any questions regarding this topic, please reach out to your local trusted real estate attorney.
