Changes to Estoppel Certificate Fees
Finally addressing a long sought after need, the Florida Legislature has put a cap on the amount Condo, Homeowner and Cooperative Associations may charge to issue Estoppel Certificates. Too often, many Associations were taking advantage of a Seller's requirements to meet contractual deadlines to ensure the sale goes through by charging exhorbinant fees.
As the Florida Realtor News sums up: "Cap on estoppel certificate fees -- Sellers of properties who live in an HOA, condo association or co-op will be happy to learn that there will be a limit to the amount they'll pay for an estoppel certificate, a document that informs a buyer if the seller is current with their dues and assessments. SB 398 (Sen. Passidomo, R-Naples) caps estoppel certificate fees at $250 for unit owners who are current in their assessments. Associations may charge an additional $100 for expedited estoppel certificates (delivered within three business days) and another $150 to owners who are delinquent in their assessments. The bill sets the price of estoppel certificates for multiple units owned by the same person, and establishes a uniform, statewide format that ensures buyers and closing agents receive the appropriate information needed to close the real estate transaction. This bill also requires certificates to be valid for 30 days if delivered electronically or 35 days if delivered by mail. Effective: July 1, 2017."
Details of the of the bill can be found here.