The following is a list of information required from you, as the developer, for the preparation of condominium conversion documents and filing. We will advise you of any additional information we require as the need arises.
Notice of intended conversion to existing tenants:1. Prior to or simultaneous with the first offering of individual units to any person, developer shall deliver via certified or registered mail a notice of intended conversion to all tenants.
2. The notice shall provide each tenant, who for the 180 days preceding a notice of intended conversion has been a residential tenant, with the right of first refusal to purchase in the unit in which he or she resides.
3. The developer shall distribute to tenants having a right of first refusal the following:
(1) Information in summary form regarding mortgage financing; estimated down payment; alternative financing and down payments; monthly payments of principal, interest, and real estate taxes; and federal income tax benefits.
(2) Any other information which the division publishes and by rule determines will assist tenants in making a decision and which the division makes available to the developer.
Conversion information
The developer shall disclose the following:
1. The condition of the improvements and the condition of certain components and their current estimated replacement costs.
2. The following information shall be stated concerning the improvements:
(a) The date and type of construction.
(b) The prior use.
(c) Whether there is termite damage or infestation and whether the termite damage or infestation, if any, has been properly treated. The statement shall be substantiated by including, as an exhibit, an inspection report by a certified pest control operator.
3. (a) Disclosure of condition shall be made for each of the following components that the existing improvements may include:
1. Roof.
2. Structure.
3. Fireproofing and fire protection systems.
4. Elevators.
5. Heating and cooling systems.
6. Plumbing.
7. Electrical systems.
8. Swimming pool.
9. Seawalls.
10. Pavement and parking areas.
11. Drainage systems.
(b) For each component, the following information shall be disclosed and substantiated by attaching a copy of a certificate under seal of an architect or engineer authorized to practice in this state:
1. The age of the component.
2. The estimated remaining useful life of the component.
3. The estimated current replacement cost of the component, expressed:
a. As a total amount; and
b. As a per-unit amount, based upon each unit's proportional share of the common expenses.
4. The structural and functional soundness of the component.
4. The disclosure shall include a letter from the City acknowledging that it has been notified of the proposed creation of a residential condominium by conversion of existing, previously occupied improvements and acknowledging compliance with applicable zoning requirements as determined by the municipality.
Establishment of reserve accounts for capital expenditures and deferred maintenance
The developer shall establish reserve accounts for capital expenditures and deferred maintenance or give warranties or post a surety bond. Please contact our office to discuss these options. In addition to establishing the reserve accounts specified above, the developer shall establish those other reserve accounts required by Section 718.112(2)(f), Florida Statutes, and shall fund those accounts in accordance with the formula provided therein.
PLEASE NOTE: A developer makes no implied warranties when existing improvements are converted to ownership as a residential condominium and reserve accounts are funded in accordance with Section 718.618, Florida Statutes. As an alternative to establishing such reserve accounts, or when a developer fails to establish the reserve accounts, the developer shall be deemed to have granted to the purchaser of each unit an implied warranty of fitness and merchantability for the purposes or uses intended, as to the roof and structural components of the improvements; as to fireproofing and fire protection systems; and as to mechanical, electrical, and plumbing elements serving the improvements, except mechanical elements serving only one unit. The warranty shall be for a period beginning with the notice of intended conversion and continuing for 3 years thereafter, or the recording of the declaration to condominium and continuing for 3 years thereafter, or 1 year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than 5 years.
If instead of establishing reserve accounts, the developer desires to post a surety bond, the developer shall, after notification to the buyer, acquire a surety bond issued by a company licensed to do business in this state, if such a bond is readily available in the open market, in an amount which would be equal to the total amount of all reserve accounts required, payable to the association.
Description of Project
(b) the prior use
(c) whether there is termite damage or infestation and whether it has been properly treated. An inspection report from a certified pest control operator must be provided.
(d) the age, estimated remaining useful life, estimated current replacement cost (expressed as a total amount and as a per unit amount based on each unit’s proportional share of the common expenses) and structural and functional soundness of the following components:
(i) roof
(ii) structure
(iii) fireproofing and fire protection systems
(iv) elevators
(v) heating and cooling systems
(vi) plumbing
(vii) electrical systems
(viii) swimming pool
(ix) seawalls
(x) pavement and parking areas
(xi) drainage systems
(e) If located within a municipality, the disclosure shall include a letter from the municipality acknowledging that it has been notified of the proposed creation of a residential condominium by conversion of existing, previously occupied improvements and acknowledging compliance with applicable zoning requirements as determined by the municipality
(b) the following economic information: information in summary form regarding mortgage financing; estimated down payment; alternative financing and down payments; monthly payments of principal, interest, and real estate taxes; and federal income tax benefits
(c) the following educational brochures which can be obtained from the Division of Land Sales in Tallahassee: (i) Condominium and Cooperative Conversion (Form DBR 335) (ii) Condominium Living in Florida (Form DBR 336) (iii) A Guide to Purchasing a Condominium Unit (Form DBR 337)
(d) the Prospectus together with all exhibits thereto