Explaining Florida Condo Termination

Florida is one of the U.S. states with the highest percentage of its population living in some kind of community association. Condo associations are the most numerous, and while Florida has strict requirements on how condo associations are run, it can be a very successful way to organize a community. However, sometimes this method of organization is no longer viable for multiple reasons – if this happens in your association, you may be able to execute a procedure known as condo termination or condo deconversion. It is not without difficulties, but the right attorney can help.

Why Terminate?

A condo termination is a procedure to remove an association from the condo form of government – in other words, to make it so that the legal entity of the condo association no longer exists. Terminations may be voluntary or involuntary; the former usually happens when the association receives a lucrative offer for its land and/or buildings, while an ‘involuntary’ termination is usually more because of economics.

After the Surfside condo collapse in 2021, Florida’s legislature has enacted new laws which have made upkeep and repairs for many older condo associations impossible. As a result, developers are more aware than ever of the potential of many condo properties that can no longer operate as such. It is very common for a developer to force a condo termination if it purchases the land, in order to use it to its fullest potential.

Is Kaufman Language Present?

If you are a board member in an association contemplating termination, it is crucial to scrupulously comply with all the rules and regulations regarding termination and owners voting on the issue. A minority of unit owners can block an optional termination if the association’s governing documents allow them to do so, due to what is known as Kaufman language. Stemming from a 1977 case, so-called Kaufman language is the phrase “as amended from time to time.”

The reason this is relevant is because Florida courts have historically ruled that unless this language is present in the association’s governing documents, state laws governing terminations do not apply; rather, whatever termination provision (if any) is contained in the documents will apply. The percentage of owners who must approve a termination is often significantly higher than state law requires, and this can take time and trouble to rectify.

Contact A Hollywood, FL Condominium Association Attorney

Condo associations are legal entities that can stand the test of time. However, sometimes the options to continue simply run out. A Hollywood, FL condominium association attorney from The Law Offices of Steven A. Mason, P.A. can help ensure that if a termination has to happen, that it is carried out appropriately. Contact our office today at (954) 963-5900 to speak to an attorney.

Source:

npr.org/2024/03/08/1236628075/surfside-florida-champlain-towers-south-condo-collapse-cause