New Florida Condominium and HOA Law 2014

         Another year and another round of tweaking to Florida’s Homeowners Association Act (Florida Statutes Chapter 720) and the Florida Condominium Act (Florida Statutes Chapter 718) have been enacted.  The new laws were signed by the Governor on June 13, 2014 and went into effect on July 1, 2014.  The new law is not very expansive but did clarify a few issues and expanded certain rights.  Please note that the laws do not necessarily apply equally to both condominiums and homeowners associations, as a legislature continues to modify the applicable chapters inconsistently.

          Under current law, a Condominium Association has certain right to access a unit owner’s unit, “when necessary for the maintenance, repair, or replacement of any common elements” and “or as necessary to prevent damage to the common elements or to a unit.”  Due to foreclosure, many units in Florida have become abandoned and the legislature took notice of this issue and expanded Florida law to grant an additional right of access to a Condominium Association when a unit is abandoned by the unit owner.  Prior to access, the association must determine that the unit is abandoned and give the owner at least two days’ notice prior to access. This new right includes the right of the Association to turn utilities on and to inspect for and repair mold.

          The insurance provision of the Condominium Act has been clarified to address non-insurable events. These are events that are either not covered by insurance or maybe for a loss of less than the minimum deductible of the Association’s insurance policy or for loss or repair due to ordinary use. The coverage of these losses to condominium property is now determined by looking at the declaration of condominium for the specific condominium in question.

          In clarifying the right of the Associations to create a directory containing the name and address of each unit/homeowner the statute includes a provision that allows for multiple phone numbers to be listed, with the right to opt out still retained by each unit/homeowner by sending written notice to the Association. In addition, the Association may, with the consent of each unit/homeowner, include additional information in the directory, presumably the electronic mail address or other information that the unit/homeowner is willing to disclose to other owners.  This provision is applicable to both Condominium and Homeowners Associations.

          A current problem in many Condominium Associations is the transfer of power from one board to the next. The law will now require the outgoing board to turn over all official records in their possession within five days of the election of the new board. In addition, the Bureau of Condominium may impose civil penalties on those who fail to cooperate with this requirement.

          In recognizing the greater use of electronic mail, the Condominium Act has also been expanded to allow board members to communicate via email with other board members without creating a quorum which would require a meeting open to all members. No voting is permitted by electronic mail.

          In order to address a recent case that held that unit owner is not liable for previous owner’s assessments if the Condominium Association had foreclosed or took title to a unit, the statute now provides that a current owner is liable for assessments of the previous owner except for the period in which the Association held title to the unit. This commonly occurs when Association forecloses then subsequent to that foreclosure the bank forecloses and either the bank or a third-party obtains title from the bank foreclosure.  This provision was added to the Homeowners Association Act in 2013.

          In order to provide access to Homeowner Association meetings to disabled persons, the Act was amended to require Associations to provide disability access if requested by a handicapped person who is entitled to attend the meeting.

          An entirely new section was added to the Homeowners Association Act to address issues arising from an emergency situation. For purposes of this change, which is very similar to a previously enacted law affecting condominiums, an emergency is defined as a state of emergency affecting the area in which the association is located as called by the Governor. The difference between the Homeowners Association statute and the Condominium statute is that the Homeowners Association does not gain the right to access individual homes, a right that the Condominium Association retains.

          Overall, the revisions were mostly minor and, in part, to clarify existing law or to unify certain parts of both Acts. Presumably, were substantial changes will be addressed by the legislature in upcoming sessions.

Michael Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate and can assist community associations in all legal matters.  They can be reached at 561.594.1452, or at mjposner@warddamon.com

The Secret Language of Lawyers

         All professions, be doctors, lawyers or baristas, have a secret language or code, which serves to both assist the profession by providing shortcuts for immediate explanations, but also to act as a barrier to entrance and to make the profession appear more important and above the normal person.  Lawyers are especially not immune to that view and the secret language of lawyers is a mixture of Latin, Old French and Old English.  While law schools these days try and teach “Plain English for Lawyers,” all new initiates seek to model their behavior like their peers, so the strange words continue to be used.  Here are some of the most popular still used by lawyers in the real estate world.

          Lis Pendens:   A Latin phrase for notice of a pending suit.  Whenever an action involving real property is filed, a Lis Pendens must also be filed to notify all parties that an action involving a specific property has been commenced.  Unlike pleadings, the Lis Pendens is also recorded in the public records and allows the lawsuit to have priority over subsequently filed liens, mortgages or other land interests (assuming the party that filed the Lis Pendens prevails).

          Ab Initio:  A Latin phrase that means from the start or beginning.  Useful for conveying, at a later date, that an obligation was meant to commence or was invalid at a certain point.  For example, a defective contract (missing a signature or key element) is often said to be void ab initio.

          Caveat Emptor:  A very popular Latin phrase for Buyer Beware.  In residential transaction, the Florida Supreme Court has held it no longer applies (imposing a duty on seller’s to disclose material information that affects the value of the house), it still is prevalent in commercial transactions, as well as many contractual arrangements (as they say, always read and understand the fine print, or get a lawyer).

          Allonge:     An Old French law term that means to draw out.  In common terms it is the endorsement on a negotiable instrument, such as a promissory note or a check (yes, when you sign your name on the back of a check you are creating an allonge in blank in favor of the bank which is cashing or depositing the check.  The phrase “Pay to the Order of XXX” is a classic example of an Allonge.

          Tenements, Hereditaments and Appurtenances, oh my: Latin phrases used in deeds to convey the bundle of rights in real property. Tenements grant the right to hold the land (as opposed to own, which is reserved for the King); Hereditaments grants the right of inheritance, used so that the land conveyed goes to the buyer and their heirs; and Appurtenances are the improvements and fixtures attached to the land.  An example is from a quit claim deed as follows: “TOGETHER with all the tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining and all the estate, right, title, interest, lien, equity, and claim whatsoever of said Grantor, either in law or in equity, to only the proper use, benefit and behoof of said Grantee, his heirs, successors and assigns forever.”

          et al.: A Latin abbreviation for et alii, it simply means “and others” and is used as a useful shortcut to avoid having to list all parties to an action or contract. 

          Chattel:  Not to be confused with cattle (which are a form of chattel), it is an Old French Law term meaning personal property.  Mostly archaic, occasionally still used to describe personal property or car loans such as a Chattel Mortgage.

          Ultra Vires:  A Latin phrase meaning “beyond power,” it commonly comes up in disputes over corporate or substitute party actions as whether the act of the corporate officer or attorney-in-fact was beyond their legal authority.  Ultra vires actions are unenforceable.  In real estate, the use of powers of attorney are often subject to ultra vires attack, when actions are taken (sale or pledge of property) and the original owner contends that they did not grant that power to the attorney-in-fact.

          Hypothecation:  A Latin phrase to pledge collateral.  A mortgage on real property or chattel is a hypothecation.  In Spanish, the word for mortgage is hipoteca, derived from this Latin word.

         

          Fee Simple:  Derived from the Latin term fief, was a feudal right granted by a king or lord to allow use of lands in exchange for allegiance (which evolved into paying taxes).  Eventually came to mean the right to own, mortgage, sell and devise land without a higher authority claiming an ownership interest.  Most property interests today are conveyed in fee simple.

          Knowing a few Latin phrases can make you a hit at your next cocktail party.  Just remember in vino veritas (in wine, truth) before you claim to be an expert in Latin.  There are lawyers everywhere ready to out Latin the layman.

Michael J Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  He is Board Certified in Real Estate Law and can assist sellers, buyers and community associations in all real estate matters.  He can be reached at 561.594.1452, or at mjposner@warddamon.com

Florida Real Property Ownership

(Part 3)

         In the last two issues we looked at several different methods for real property ownership, from tenants by the entireties, life estates, revocable trusts and other methods allowed in Florida.  These methods work for more basic needs but when dealing with specialized issues such as asset protection, limiting liability across multiple properties and foreign ownership, only ownership in an entity can provide that extra protection, but with certain restrictions and drawbacks.

           Foreign owners who would traditionally buy Florida property in their own name face substantial tax and estate consequences on sale due to the Foreign Investment in Real Property Tax Act and multi-jurisdiction probates.  Any sale to an investor or a sale over $300,000 requires withholding of ten percent of the gross sales price regardless of profit or loss until a withholding certificate is obtained.  If the property is held by an entity, this withholding can be avoided. 

           Entity ownership instead of personal ownership can also serve as an estate planning tool.  Instead of having a domestic probate and a separate probate in Florida, the entity interest would be treated as personal property and probated solely at home, with ownership of the real property remaining in the entity.

           Entity ownership also limits liability from loss or damage due to issues at the property.  Individual and trust ownership of rental property exposes the personal owner to claims for loss, injury or damage in connection with the property.  For example, if a tenant is hurt or dies at the property, the tenant or the tenant’s estate can sue the owner and reach personal assets.  If an entity is used, the tenant can only look to what the entity owns (typically the property only) to recover damages.  While insurance can reduce this exposure, entity ownership can reduce the need for excess coverage and the costs associated therewith.

           Traditionally the most common form of entity ownership was the corporation.  Corporations have existed for hundreds of years, and are the best understood and most common form of ownership.  However, corporate ownership has several drawbacks from both a tax and reporting areas.  Corporations can be taxed as “C” corporations which is the default status under Federal law.  C Corporations pay income tax on profits, and then the shareholders again pay tax on distributions.  These entities also are liable for an additional Florida corporate income tax at a rate of 5.5%. 

           The alternative tax status is an election to adopt “S” Corporation status.  S Corporations do not pay either federal or state income tax on profits.  Instead, these entities are deemed a pass through, with all taxes paid at the shareholder level.  However, this election is restricted, as “S” corporations cannot generally have entity shareholders, foreign owners or trust owners.

           Another traditional entity for real property ownership is the limited partnership.  Limited partners, like shareholders, have no personal liability beyond their investment in the partnership.  However, the general partner of the limited partnership does have personal liability (though most general partners today are, in fact, corporations or LLCs).

           To avoid the problems inherent in corporations and partnerships, a new entity was created called the limited liability company.  Beginning in Wyoming in 1977, the LLC is now valid in all states. The LLC combines the limited liability characteristic of a corporation with the pass through tax treatment of a partnership.  LLCs can be owned by foreigners, can have entity ownership for multi-layering (meaning the members of the company can be another entity, including a foreign owner), and have no limit to the number of owners.

           LLCs are generally less complicated than partnerships and corporations, with only two layers of management (members and managers), and require less paperwork and meetings to maintain viability. This lowers the overall cost of formation and operation.  Delaware has even created a specialized LLC called a serial LLC which allows for one parent LLC with a single tax id number and accounting to have multiple LLC children, with the benefit of limiting liability to each child LLC.  This is extremely useful for owners of multiple rental properties.  Florida has not approved this format but I expect it to be adopted in the future.

           While entity ownership has its benefits, it is not always the best approach.  Financing can be more difficult to obtain, and insurance costs can be affected.  Choosing the proper form of ownership requires planning and consultation with tax and legal professionals.  Failure to properly plan can cause substantial problems after purchase. 

Michael J Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate and entity ownership and can assist sellers and buyers in all real estate and entity matters.  They can be reached at 561.594.1452, or at mjposner@warddamon.com

Florida Real Property Ownership, Part Two

In last month’s article, I discussed the various ways individuals can hold title to real property in Florida.  These were as tenants in common, joint tenants with full rights of survivorship and as tenants by the entireties.  These estates are the most common but in many cases, they are not the best approach for owners of investment property, rental properties, second homes (in or outside the state of Florida) and foreigners.  In these cases a different approach to ownership should be considered.  Because of the tax and estate issues involved in this discussion, you should always seek professional legal and tax help before choosing how to hold title to these type properties, as no one method is best.

           The most common method for ownership is the use of a trust.  The benefit of trust ownership is that it allows for a transfer of the property outside the estate of the individual owner.  For example, If a husband and wife have a home in New York and by a vacation home in Florida in Boca Raton, when the first spouse dies, the property passes, by operation of law, to the surviving spouse (simply record a death certificate and an affidavit of continuous marriage to clear title).  However, when the second spouse dies, an ancillary administration of the surviving spouse New York estate must be completed in order to clear title.  This is often a surprise to the surviving children, and can delay sale of the property in Florida for months.

           By creating a trust to hold title to the property, this ancillary administration is avoided.  The most common trust is a Revocable Living Trust.  This type of trust allows the settlors to retain the power to cancel the trust or take trust action without permission of the beneficiaries (or the trustee(s) if different than the settlors themselves.  In the scenario above, the husband and wife create a trust naming themselves as the Co-Trustees, and their preferred heirs as the beneficiaries. 

           They also provide a provision that upon the first spouse’s death, the second spouse remains the sole trustee and then upon the last spouse’s death, a successor trustee is appointed (either a friend, relative, attorney or one of the beneficiaries) who then has the powers provided for in the trust.  These powers can be as broad as the original trustees or can be specifically limited, such as requiring the property be deeded to a specific person or charity.  However, no probate of the last spouse’s estate is needed.  To clear title only the recording of a death certificate and a trust certificate with relevant portions of the trust attached is necessary.

           Generally speaking, Revocable Trusts do not infer any tax benefit and provide no creditor rights protection to the settlors.  The property in the trust is deemed the settlors property for tax and creditor claims.  This is because the settlors retain control over the property through the revocable nature of the trust.  Therefore a Revocable Trust is not a good vehicle to protect owners of multiple properties where the risk of tenant lawsuits could result in substantial damage claims.

           Revocable Trusts do provide the ability to protect the trust from the claims of the creditors of the beneficiaries of the trust.  By including a spendthrift clause in the trust, the funds and assets held by the trust that would go to a beneficiary cannot be reached as long as the funds either remain in the trust and the distribution of assets is discretionary to the trustee (and not mandatory). With proper drafting, the funds can be used to benefit the credit risky beneficiary without letting creditor’s reach those funds.

          

           Trust usage does have its drawbacks.  It is an immediate expense to create a trust that may never be used to avoid probate.  It breaks the special creditor’s right protection afforded property owned by husband and wives in Florida.  It does not offer any creditor or tax protection.  Many people create a trust and fail to put all their assets in the trust, which then requires some level of probate.  However, in many cases a trust makes sense, especially if done as part of a comprehensive estate plan.

Michael J Posner, Esq., is a partner in Ward, Damon, Posner, Pheterson & Bleau, P.L., a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate trust matters and can assist in advising on and creating trusts.  Mr. Posner can be reached at 561.594.1452, or at mjposner@warddamon.com

Florida Real Property Ownership - Part One

Owning Real Property in Florida may appear simple but in fact it can be a mind field for those in particular situations, such as married couples, older single out of state owners, Canadians (and other foreigners), owners of multiple investment properties, and unmarried couples.  Without proper planning, a wrong decision can lead to unnecessary probates, judgments, tax withholding and other undesired consequences.  The following is a basic primer on estate holding, but it should only be a starting point, and all readers are encouraged to discuss the best method for property ownership with their legal and tax professional.

            The Three Estates:  In Florida, the law recognizes three distinct estates for multiple owners of property.  Two are derived from common law, and the third, tenants by the entireties (TBTE) is distinct to Florida and about half of the states in the US.  The traditional estates are Tenants in Common and Joint Tenants.

            Ownership as Tenants in Common (TIC) means that each owner owns a distinct percentage as stated in the deed.  If not stated, then it is presumed to be equal shares, two owners means each owns fifty percent, four owners means each owns twenty-five percent.  TIC owners can freely convey their interest without affecting the nature of the estate, and upon the owner’s death, their TIC interest passes to their heirs at law.  Creditors can encumber a TIC interest, either voluntarily through a mortgage, or involuntarily through a judgment.  To create a TIC interest in Florida the deed need merely recite the grantee (buyer’s) names, and no statement of interest is required.  For example, John Smith and Dave Brown, grantees, creates a TIC estate.

            Ownership as Joint Tenants traditionally meant that the owners share equally in the ownership of the entire property.  To create a joint tenancy, four specific elements are necessary.  The joint tenants must own an undivided interest in the property as a whole and their share must be equal (TIC owners can have variable ownership). (2) The estates of the joint tenants are vested must be for the same period of time. (3) The joint tenants hold their property under the same title. (4) The joint tenants all enjoy the same rights of possession.  Traditionally, merely stating John Smith and Dave Brown, joint tenants, as grantees, created the Joint Tenant estate.  However, Florida courts have long rejected that rule, requiring magic additional language to create the estate.

            The magic language is “with rights of survivorship” added to the joint tenant language.  John Smith and Dave Brown, joint tenants with rights of survivorship would create the necessary estate.  The main benefit of the joint tenancy is that upon the death of one tenant, the property passes outside of the deceased owner’s estate to the other owner and no probate is required.  Joint Tenancy does not act as a creditors protection scheme and creditors can lien and foreclose a joint owner’s interest.  Joint Tenancy is usually the best option for owners with a common interest through family or for same sex couples.  After death, the recording of death certificate and a non-tax (estate) certificate will generally clear title in the surviving joint tenant.

            The final estate in Florida is Tenancy by the Entireties (TBTE).  This estate must be created with the same conditions as a joint tenancy, but is only available to married couples.  The magic language can be John Smith and Mary Smith, husband and wife, or John Smith and Mary Smith, his wife, Mary Smith and John Smith, her husband, or even John Smith and Mary Smith, as tenants by the entireties.  The TBTE estate has the same survivorship interest as the joint tenant estate but also adds a creditor’s protection that only applies to married couples holding title as TBTE.  For example, a couple owns three rental homes in Florida in addition to their homestead.  If one spouse is sued and a judgment is entered against that spouse, the judgment will not attach or become a lien against the property.  Thereafter, as long as they remain married or the non-judgment spouse survives the judgment spouse, the lien will not attach against the property.  However, if the parties get divorced, or the judgment spouse survives the non-judgment spouse, the lien can attach.

            We frequently see mistakes in planning with TICs created when the new owners, had they known would have either selected a joint tenancy or even a TBTE estate.  Knowing your options and planning when purchasing can avoid these problems.

Michael Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate and can assist sellers and buyers in all real estate matters.  They can be reached at 561.594.1452, or at mjposner@warddamon.com

FIRPTA For Beginners

          Many homes in South Florida are owned by residents of Canada, the United Kingdom, Europe or the Caribbean Islands. When these owners who hold title in their own names go to sell they often run afoul of a federal law known as the Foreign Investment in Real Property Tax Act, commonly known as FIRPTA.  FIRPTA is designed to prevent foreign owners from selling property in the United States and taking their profit home, outside the jurisdiction of the Internal Revenue Service to collect the tax on the gain that is due on the sale.

          FIRPTA works by requiring the buyer (known as the transferee) to withhold ten (10%) percent of the sales price from the seller’s (known as the transferor) proceeds.  For example, of the home being sold by a Canadian with a sales price of $500,000.00 the transferee is required to withhold $50,000.00 from the proceeds and remit same to the Internal Revenue Service within twenty days of closing.  To add real teeth to the law, any realtor or title company involved must also see that the money is remitted or face penalties along with the transferee.

          The biggest issue with FIRPTA in the current world is the requirement of payment of withholding even if the seller has an obvious loss.  For example, if the seller in the transaction described purchased the property in 2004 for $750,000.00, they would have a loss of $250,000.00 and no tax on the sale would generally be due.  Even though they have the loss, they will have to have the money withheld, and the only way to get the money back is to either apply for a withholding certificate or wait until the next year and file a 1040NR showing the loss (which will result in a refund).

          Compounding this problem is the fact that many sellers are partially or wholly underwater.  Typically, a $500,000.00 sale will net a seller only $460,000.00.  If the seller owes more than $460,000.00, the seller will have to bring money to the closing to pay the withholding.  If the sale is a short sale, the seller will have to pay 100% of the withholding to the Internal Revenue Service.  This is money that many sellers simply cannot afford, resulting in more foreclosures.

          There are two exemptions to the requirement for withholding.  The first exemption is for residential sales under $300,000.00.  This exemption is conditioned upon the buyer purchasing the home or a member of their family must have definite plans to reside at the property for at least fifty percent of the number of days the home is used by any person during each of the first two annual periods following the date of sale.  If the buyer will sign an affidavit to that effect, no withholding is required, even of the seller has a taxable gain on the sale.  Please note that even if the exemption is met, the seller is still liable for the payment of any tax due on the sale.

          The second exemption is the acquisition of the seller of a withholding certificate from the Internal Revenue Service setting forth the amount required to be withheld.  This certificate can be applied for at any time before closing.  The application is designed to show the basis for the seller in the property from the original purchase, any increases in the basis for capital improvements, and the amount being realized from the sale after subtracting costs of sale.  This formula is used to show if the seller, as transferor, has any taxable gain.

          If the application (with supporting documents including deeds, contracts, HUD-1 closing statements and receipts) is accepted by the Internal Revenue Service, the transferor can obtain a withholding certificate showing the amount of tax due (often zero) and if obtained before closing, no withholding is required.  If filed before closing, but obtained after closing, the ten percent withholding can stay in escrow with the closing agent and then be released in whole or in part upon presentation of the withholding certificate to the closing agent.

          The FIRPTA withholding is a very costly issue for many sellers.  Next month I will discuss ways to avoid withholding by proper planning when purchasing Florida real estate.

Michael J Posner, Esq., is a partner in Ward, Damon, Posner, Pheterson & Bleau, P.L. a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate and can assist foreign sellers in all FIRPTA matters.  They can be reached at 561.842.3000 or at www.warddamon.com

Homeowners Association New Legal Requirements

The new amendments to the Homeowner Association Act went into effect July 1, 2013.  This created new obligations and restrictions for Homeowner Associations and their Board of Directors as follows:

          1.       All Homeowners Associations must register with the Department of Business and Professional Regulation by November 22, 2013.  The format for registration is expected to be available online by October 1, 2013.  Information to be given includes the Homeowner Association’s legal name, federal employer identification number, mailing and physical addresses, the total number of parcels/units, and the total amount of revenues and expenses from the Homeowner Association’s annual budget.

          2.       The new records retention requirements now mirror the existing Condominium Act, including a requirement for records to be maintained for seven years and the records must be maintained within forty-five miles of the community or within the same county.  Homeowners Associations are also allowed to maintain Association records electronically via the Internet or on portable media such as cd-roms or thumb drives in lieu of providing paper copies.  The right to charge for copy costs has been reduced to $.25 per page, and personnel costs for requests that exceed one-half hour or more than twenty-five pages is limited to a charge of $20.00 per hour.

          3.       Each new board member must certify, within ninety days of election or appointment that they have read the governing documents and will uphold them to the best of their ability and that they will faithfully discharge their fiduciary responsibility to the Association or, in the alternative, that they have satisfactorily completed an educational curriculum administered by a division-approved association education provider.  Our firm provides free forms for completion via e-mail request at mjposner@warddamon.com (please put Director Certificate in the subject line).

          4.       All Homeowners Associations must obtain a Fidelity Bond/Crime and Fidelity Insurance. This requirement can be waived by a majority vote at an annual or special meeting of the members in the same manner as other permissible waivers.  No minimum coverage amount is currently set forth in statute, but we are recommending not less than $100,000.00 for small Associations, with larger amounts for large Associations.

          5.       Contracts with Board of Director members must now be approved by a 2/3rds vote of the Board (and excluding the vote of the Director involved), and the vote must include a finding that the contract is both fair and reasonable.  After approval, Board of Directors must disclose the contract at next member meeting.  Any member at that meeting can make a motion to cancel the contract and if cancelled by a majority vote, the contract is void.  Therefore, any contracts signed by the Association must include a termination provision without penalty if the members vote to cancel the contract.

          6.       The new law now prevents officers, directors and property managers from receiving any good or services without payment (or reduced payment) from any third party soliciting or providing services to the Homeowners Association in a way to cut back on kick- backs.  One exception is for meals not to exceed $25.00 as part of a business meeting or items at trade fairs or education programs.  Violation of this new law means immediate expulsion from the violator’s position. 

          7.       Any director or officer charged with a theft of Homeowners Association funds must be immediately removed from office, but if charges are dropped or the person is acquitted they must be reinstated to the same office within the Association.

          The new laws impose greater burdens on Homeowners Associations, in a push to add further condominium like regulations of Homeowners Associations.  Each Board member should carefully review the law to insure timely compliance.

Michael Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business oriented law firm serving all of South Florida, with offices in Palm Beach County.  They specialize in real estate and can assist community associations in all legal matters.  They can be reached at 561.594.1452, or at mjposner@warddamon.com