Richard Vasquez
(305) 975-8653
Vasquez.r@EWM.com

Legistlature passes estoppel certificate fee reform

 
Thursday, May 04, 2017
Tags:   Condo Living

Estoppel Fees are charged to sellers for Estoppel Letters.

Estoppel Letters are defined as a legal document provided by the seller's Homeowner's or Condominium Owner's Association, outlining the current owner's financial standing, past due balances, current fees due and lists all future special assessments due. You need an estoppel letter in order to close a sale in a condo or homeowners association.

 

Up until now there has been no cap on the fee that the associations are allowed to charge for the fee for the estoppel letter. As a result, greedy associations have been charging whatever they feel like. 

I  have heard stories from Florida Realtors where "property owners have been forced to pay across the state – like an estoppel letter that cost $1,610 on the sale of a property that was sold for $190,000."  Which is just plain highway robbery!

 

However thanks to our Realtors that spoke out and went to Rally on Tally as well as well as RPAC (Realtor Political Action Committee) legislative initiatives there is good news to report!  On 4/28/2017 Florida Realtors scored a big legislative victory regarding the estoppel fee reform, Florida Realtors was pleased to announce that HB 483/SB398 passed and was sent to Gov. Scott for his signature and will go into effect July 1st 2017.

 

The new fee reform "HB 483/SB 398 cap the fees that community association management companies can charge for estoppel certificates at $250 for unit owners who are current in their assessments. An additional $100 can be charged for "expedited" estoppel certificates (delivered within three business days), and another $150 can be charged for owners who are delinquent in their assessments. This is a maximum of $500 for an expedited, delinquent estoppel certificate".

 

Another Realtor victory in the efforts to support homeownership!

 

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