Florida Administrative Code › 61 - DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION › 61B - Division of Florida Condominiums, Timeshares and Mobile Homes › Chapter 61B-23 - THE ASSOCIATION › Section 61B-23.003 - Transition from Developer Control

Current through Reg. 50, No. 138; July 16, 2024
(1)
				When an association will operate more than one condominium, unit owners other
				than the developer are entitled to elect no less than one-third of the members
				of the board of administrators when they own fifteen percent of the units in
				any one condominium to be operated by the association. The basis upon which
				unit owners other than the developer are entitled to elect not less than a
				majority of the board of administrators is determined according to the
				percentage of units conveyed to purchasers in all condominiums that will be
				operated ultimately by the association. The developer is entitled to elect at
				least one member of the board of administrators as long as it holds for sale in
				the ordinary course of business the percentage of units provided by law in any
				one condominium operated by the association.
(2) A developer may establish a transition
				committee or committees to involve unit owners in an advisory capacity with
				regard to the operation of the condominium prior to assumption of control of
				the association by unit owners other than the developer. However, establishment
				of such committee does not relieve the developer from any obligations under
				Section 718.301, Florida Statutes.
(3) Association funds shall be used only for
				association purposes and may not be expended for the purposes of the developer,
				including but not limited to sales and promotional activities, utilities or
				other costs for construction activities or repair or replacement which is
				within the warranty obligations of the developer, nor may association personnel
				be used for such purposes at association expense.
(4) The developer shall pay the costs for the
				preparation or duplication of the documents required by Section
				718.301(4),
				Florida Statutes, to be provided the unit owner controlled association upon
				transfer of association control, including the costs and accountant's fees
				incurred in preparing the financial statements required by Section
				718.301(4)(c),
				Florida Statutes.
(5) Within 10
				business days after the election of the first unit owner, other than the
				developer, to the board of administration, the developer shall forward to the
				division, in writing, the name and mailing address of the unit owner board
				member.
(6) The developer or
				developer's agent shall obtain a receipt for transfer of condominium documents
				to the unit owner controlled association. The receipt shall include a listing
				of all the items for each condominium operated by the association outlined
				under Section 718.301(4),
				Florida Statutes. Said receipt shall contain the date of transfer of the
				records and shall be signed by both the developer and a non-developer unit
				owner board member. A copy of said receipt shall be given to the association.
				Both parties shall retain the receipt for a period of 7 years. Said receipt
				shall not constitute a waiver of unit owner or association rights with respect
				to completeness and accuracy of the transfer of condominium documents or
				preclude administrative remedies available to the division.
(7)
(a) For
				purposes of computing the percentages of units conveyed to purchasers which
				will entitle unit owners other than the developer to elect not less than a
				majority of the members of the board of administration, units sold or otherwise
				transferred in a bulk transfer by the current developer shall be utilized in
				the above computation for a turnover of control of the association board unless
				the sale or other transfer is accompanied by an assignment of the developer's
				rights to the grantee or transferee. If an assignment of developer rights does
				not accompany the bulk transfer, in all instances the units sold or otherwise
				transferred shall be utilized in the computation for a turnover.
(b) As utilized in this rule, the term "bulk
				transfer" means any sale or other transfer of two or more units in one
				condominium to the same person, including but not limited to units conveyed
				through foreclosure, deed in lieu of foreclosure or any other transfer or sale,
				whether voluntary or involuntary.
(c) As utilized in this rule, the phrase
				"assignment of developer rights" refers only to a written agreement whereby the
				current developer expressly transfers to the grantee or transferee all
				developer rights and existing obligations under the declaration of condominium,
				including any exhibits thereto; under Chapter 718, Florida Statutes, including
				the provisions of Section
				718.203, Florida Statutes; and
				under these rules.
(d) If the
				transferee or grantee receives an assignment of developer rights, the
				transferee or grantee shall have the voting rights of the current developer as
				provided in the declaration, articles of incorporation or association bylaws
				and the Condominium Act.
(e) If the
				transferee or grantee does not receive an assignment of developer rights and if
				the transferee or grantee is not and does not become a developer as defined by
				Rule 61B-15.007, F.A.C., such
				transferee or grantee is entitled to vote for a majority of the members of the
				board of administration.
(f) If the
				transferee or grantee does not receive an assignment of developer rights and if
				the transferee or grantee, at the time of such transfer or at a subsequent time
				becomes a developer as defined by Rule
				61B-15.007, F.A.C., such
				developer is entitled to vote for a majority of the members of the board of
				administration so long as such developer is offering units for sale in the
				ordinary course of business as defined in Rule
				61B-15.007 and subsection
				61B-15.0011(6),
				F.A.C. If, however, such developer is not offering units for sale in the
				ordinary course of business as defined in Rule
				61B-15.007 and subsection
				61B-15.001(6), F.A.C., such developer is not entitled to vote for a majority of
				the members of the board of administration.
(g) If during the time such developer,
				pursuant to the provisions of paragraph (f) of this rule, is entitled to vote
				for a majority of the members of the board of administration, such developer is
				responsible for any violation of the Condominium Act or these rules by the
				association committed during the time such developer controls the association
				by voting more than 50 percent of the voting interests of the association.
				Further, such developer shall provide the association with an audit of the
				association financial records in the manner provided in Section
				718.301(4)(c),
				Florida Statutes, and Rule
				61B-22.0062, F.A.C., for the
				period such developer controls the association regardless of the fiscal period
				required by subsection
				61B-22.0062(1),
				F.A.C.