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Florida estoppel certificate fee reform is a Go!

By
Real Estate Agent with RE/MAX Coastal Properties

Florida Realtors got some legislative support with the passage of HB 483/SB 398  that
 
 
 
caps estoppel certificate fees, among other changes.  And if you have ever requested one you know what I'm talking about.
 
 

 

An estoppel certificate provides a snapshot of the fees or assessments that a seller may owe to their community association and is provided by the association or management company when a property is being sold. Prior to this legislation, Florida law allowed associations to charge a "reasonable" fee to prepare an estoppel certificate,  obviously that word or number was/is very subjective as  some association management companies were charging very "un-reasonable"  fees as high as $1700 on a property under $200k. 

Many will charge an additional rush fee if the letter is needed before the 15 days, as well as an update fee if the closing is delayed beyond the “good through” date.

The process is further complicated if the homeowner is in collection. A payoff letter must be obtained from the HOA’s attorney and they have 15 business days to provide the payoff and will charge an additional fee.

 

HB 483/SB 398 caps the fees that community association management companies can charge for estoppel certificates:

 

  • $250 for unit owners who are current in their assessments.
  • An additional $100 can be charged for "expedited" estoppel certificates (delivered within three business days), and
  • another $150 can be charged for owners who are delinquent in their assessments. This is a maximum of $500 for an expedited, delinquent estoppel certificate.
  • also require certificates to be valid for 30 days
  • and provide for a standard estoppel certificate form to ensure the same information is provided to owners across Florida.

Now I like the idea of a standardized form, but anytime you give them the option of "can" it automatically becomes "will".

 

 HB 483/SB 398 is now headed to Gov. Scott for his signature. Once the bill is signed into law, it will take effect July 1, 2017.

 

 

Posted by

 karenbutler realtor      Karen Buter, Realtor

             850-830-8780

Karen@KarenButler.com

remax coastal logo

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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Karen - when I read it, and read that it was a result of multi-year fight by Realtors, I did not know what to say.

1. Why allow to charge for Estoppel Certificate (Estoppel letter) in the first place. Management companies are interested that there are no unpaid sums, so this whould be a part of their duties.

2. As you said, the allowed maximun of $250 will become a norm, and right now in our area there a lot of companies charging less and significantly less. Plus the right to charge more if there is delinquency, and for expedited certificate.

$500 maximum, and there are still a lot of properties in the $30s and $40s. (Condo-hotels).

If this is a victory, what would then be considered a loss?

May 06, 2017 05:33 PM
Karen Butler
RE/MAX Coastal Properties - Fort Walton Beach, FL
Eglin AFB/ Fort Walton Beach /Destin Relocation

Some in our area have charged over $1000! I agree with you I think it should be a part of their duties. But HOA's are an out of control force in many cases, and I'm sure battled tooth and nail to send you that copy of the document they already have on file for a large fee.

May 11, 2017 02:40 AM