Bulletin: FL2024005

Dear Associates:

The following are summaries of selected bills passed during the 2024 legislative session, which are of interest to the title industry:

Wills and Estates - Probate Records Recording: CS/HB 923 Ch. 2024-238

Amends Florida Statute §28.22 to require recording of orders admitting the will to probate and orders determining beneficiaries. The legislation passed was considered unsuccessful by proponents who wanted to add the recording of petitions for administration and petitions for determination of homestead to the list of recordable documents. The legislation also amends the Florida Uniform Disposition of Community Property Rights at Death to reduce the risk of unintended forfeitures of property rights held by a surviving spouse by providing for relief by declaratory action and eliminating the need for the spouse to file a creditor claim. (The act was amended in response to the holding of Johnson v. Townsend, 259 So. 3d 851 (Fla. 4th DCA 2018)).

Homeowner's Associations: HB59 Ch. 2024-202 and CS/HB1203 Ch. 2024-221

A number of new laws were passed this session relating to homeowner’s associations.

HB 59 amends Florida Statute §720 to require homeowner’s associations to provide copies of current and updated Rules/Covenants to new and existing members and allows the HOA to comply by posting the Rules/Covenants on a website.

CS/HB 1203 makes additional changes to Florida Statute §720 as follows: 1. Allows a parcel owner to make a written request for a detailed accounting of any amounts owed to the HOA, and the HOA must provide such information or else the board forfeits any outstanding fine under certain circumstances, 2. Prohibits an HOA or its ARC from limiting or placing requirements on the interior of a structure, central air-conditioning, refrigeration, heating, ventilating systems, vegetable gardens, and clotheslines that cannot be publicly viewed, 3. Prohibits an HOA from precluding an owner from parking a non-commercial personal vehicle on HOA property, regardless of whether the vehicle bears insignias reflecting the vehicle is a “work vehicle,” and 4. Provides criminal penalties if an HOA officer, director, or manager accepts a kickback.

Flood Risk Disclosure: CS/SB 1049 Ch. 2024-215

Creates a new written disclosure requirement upon sellers of residential properties, which must be provided at or before executing a contract for sale. The disclosure must be titled “FLOOD DISCLOSURE” and must notify the buyer that homeowner’s insurance policies do not cover flood damages. Further, the disclosure must inform the buyer if a flood claim was made with an insurance carrier or FEMA Assistance has been provided for flood damages. The law defines “Flooding” as a temporary or permanent condition of complete or partial inundation of the property arising from inland or tidal water overflow, standing water from excessive rainfall, or rapid accumulation/runoff from any established source. See Florida Statute §689.302.

Condominiums: CS/HB 1021 Ch. 2024-244

This amendment covers a broad range of topics related to Condominiums and among other matters, requires additional options to access association documents as follows: Associations managing 25 or more units must maintain an accessible website with copies of condominium documents, completion of Division-certified education by board members, new penalties for voter fraud, and new meeting notice requirements. New standards for Common Area Maintenance and Condominium Association Officers were added/updated.

The act also amends the definition of “Condominium Property” and creates new Florida Statute §718.407, which allows condominiums to be established within a part of a building or in a multiple parcel building; §718.407 was enacted to address assessment issues encountered in mixed use condominiums and is in direct response to the court’s ruling in IconBrickell Condo. No. Three Ass'n, Inc. v. New Media Consulting, LLC, 310 So. 3d 477 (Fla. 3d DCA 2020).

Easements: HB 799 Ch. 2024-268

Creates Florida Statute §704.09 acknowledging that an owner of real property may create easements, servitudes, and other interests in or on the owner’s real property which were formerly deemed void ab initio in several court decisions. While the statute does not specifically state it applies retroactively, the statute states that it is the intent of the law to respect prior transactions and the parties’ reliance on easements, servitudes and other interests created by those transactions. The statute does not revive or reinstate rights or interests that were adjudicated invalid before a certain date.

Taxes: CS/HB 7073 Ch. 2024-158

Amends Florida Statute §201.08 to change the amount of Documentary Stamp taxes to be collected on home equity conversion mortgages as defined in 12 C.F.R. §1026.33(a), which are commonly known as reverse mortgages. The statute limits the taxable amount to the “principal limit” defined as the “loan proceeds available to the borrower” and evidenced by the recorded mortgage or any supporting documents attached thereto.

PACE Loans: SB 770 Ch 2024- 273

Amends Florida Statute §163.08 to establish new conditions under which a property owner can apply for financing, requires a lender to verify that the total estimated annual payment amount for all financing agreements does not exceed 10 percent of the property owner’s annual household income, requires substantial additional disclosures and amends precontract notices. The act also expands the list of eligible improvements PACE loans can be utilized for and clarifies that PACE financing must be approved within the county where the property is located. Further, specific provisions were added including authorization for use of PACE financing on commercial properties.

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