Boca Raton, FL Real Estate Agent: January 2010

The word condominium refers to a building or residential complex, wherein the units of property, such as apartments, are owned by individuals, and the common areas of the property, like the hallways, grounds, other public amenities and the building itself, are jointly owned and maintained by the unit owners.

Condominiums represent a large sector of the Florida real estate market; yet new owners are often poorly informed about the important elements that are integral to buying and living in a condo in Florida. Condos are most commonly known for being residential, but they can also be commercial or a mixture of both. Each unit/property/home is individually owned but it is purchased with communal rights to use, and pay for, the surrounding areas and grounds, amenities and facilities, plus the upkeep. Condo Associations are NON PROFIT and for the benefit of all owners.

There are many aspects to consider when choosing the right condominium unit, as different properties are right for different personal preferences or budgets.  You should properly identifying how and when you intend to use the condo now and in the future; seriously deciding on a  whether the unit or building is for residential or second home use, investment,  for long-term rentals, or a residential or second home that could be rented out during peak periods. Many condominiums have restrictions on use and you should be sure the building you chose meets the criteria for use you have defined.

When you are buying a condo in Florida, you are required by law to receive a copy of the Declaration of the Condominium or  "condo docs" as they are more commonly known - this is mandatory regardless of whether you are buying a resale condo, key-ready condo or a pre-construction condo. These condo docs are registered with the State and can be over 500 pages in length.

The condo docs will contain lots of specific information, including details about the developer, the formation of the Home Owners Association (HOA) and related fees, plans of the buildings, floor plans for each unit and the all important Rules and Regulations of the condominium.

Some Important information that you look for in the docs or ask for from the Condo Association:

•What exactly are your ownership and voting rights within the association?

•What percentage of the common expenses are you be liable for - many units offer different floor plans of various sizes, with each one making up a percentage

•What restrictions are in place regarding the common elements and your unit?

•Is there planning in place for further units to be constructed?  If so, how many and when?

•Does the developer have any options NOT to complete any of the facilities or amenities?

•Is there a history of resident complaints at the condominium?

•Is the Condominium Association currently involved in any form of litigation?

 •Does the Condominium Association have reserved funds set aside for maintenance projects and future capital expenditures?

•What about pets - are there ANY restrictions?

•Can you rent or sell your condo without restrictions?

•Are there any restrictions regarding family and friends using, staying with, or occupying the unit?

When buying a new , key ready or pre-construction condos, you are given, by law, 15 days to review and study the condo docs.  Buyers of resale condos are given 3 days to do the same.  If you come across anything within the condo docs that you do not want to abide by you have the right to rescind on the purchase contract, without penalty, as long as it is done within the stipulated contractual time frames.

Many buyers will receive a copy of the condo docs, see how many pages there are and choose not to read them. This can be reckless as information regarding voting rights and rules and bylaws can be very important and often have a direct affect on how you can live in and use the condo.

In Florida, all condominiums are provided with a framework of Florida Statutes in Chapter 718. All owners of condos must pay assessments or maintenance fees which will cover the expenses for the common areas. They must also abide by the Association Rules. If, as a condo owner in Florida, you do not pay your maintenance fees, a lien can be placed on your unit and if your debts are not paid it can lead to foreclosure and eviction.

The condominium association is responsible for the maintenance, protection and repair of ALL amenities and facilities that are integral to the condominium. This will include swimming pools, tennis courts, elevators, landscaping, security, etc.

New condominiums will have a Board of Directors appointed by the developer, but this will normally be handed over to the actual owners once an election has taken place amongst the owners.

If you are buying a new or pre construction condo, the developer is required to provide ALL buyers with a prospectus if the condominium will have more than 20 units or if it is to be part of a larger group of residential condos which will be "served by property " to be utilized in common, by condo owners of more than 20 units. This prospectus should summarize the main points of the condo docs and it is essential that you read AND understand all of the restrictions AND obligations that come with becoming and owner of the Condominium Association.

If you're considering buying a condominium in Florida I recommend that you not only read the condo docs but also the following documents prior to writing the contract.

•A set of the Condominium Association Documents & Bylaws.

The Declaration of Condominium is the most important document of all the condo docs, because this is the one that actually "creates" the condominium and is recorded in the local county official records. This Declaration of Condominium will specify the voting rights of owners, membership rights, how the common expenses are divided and a host of other important information

The By Laws will show details of the different types of meetings, their frequency and location and notification periods. The duties of the Association, the Directors and the Officers, procedures for amending the By Laws, usage restrictions and financial reporting will also be included here.

•A copy of the Condominium Association Budget.

This Operating Budget will include estimates regarding all "common" expenses that are to be shared amongst the owners. Any expected future capital expenditure and maintenance projects over $10,000 should be shown here. (i.e. repainting, roof repairs or replacement, window replacement, etc.).

•A list of frequently asked questions - The FAQ's.

The Florida Condominium Act was amended in 1992 to provide additional disclosure and consumer protection for persons interested in purchasing condominium units. The law was amended to require both developer-controlled associations and unit-owner controlled associations to prepare a "Frequently Asked Questions and Answers" (commonly referred to as a "Q&A Sheet") to assist and protect potential purchasers.  Today, Section 718.504 of the Florida Condominium Act requires the Q&A Sheet to include the following: information regarding

unit owners' voting rights; unit use restrictions, including restrictions on leasing of a unit; information indicating whether and in what amount the unit owners or the association is obligated to pay rent or land use fees for recreational or other commonly used facilities; a statement identifying the amount of assessment which, pursuant to the budget, would be

levied upon each unit type, exclusive of any special assessments, and which shall further identify the basis upon which assessments are levied, whether monthly, quarterly or otherwise; a statement identifying any court cases in which the association is currently a party of record in which the association may face liability in excess of $100,000; and whether and in what amount the unit owners or the association is obligated to pay rent and land use fees for recreational or other commonly used facilities, and whether membership and recreational facilities association is mandatory and, if so, what fees can be charged per unit type.

The Q&A Sheet must be updated annually and must be kept among the association's official records. It must be provided to a prospective purchaser of a condominium unit in connection with resales of a unit. Keeping and updating the Q&A sheet is one area where many associations are not diligent, and are often in violation of the law.

•A list of Rules and Regulations.

A few important rules may include, but are not limited to:

•Pet restriction - A limit of the amount of dogs/cats/pets you are permitted within the condo and/or within the grounds. This can also include weight restrictions.

•No motorcycles of any description

•No commercial vehicles allowed overnight. This can also mean trucks and pick ups.

•Maximum of 3 leases per year and/or minimum stay options

•Deed restricted age requirements 55+ Active Adult regarding both ownership, occupancy and visiting family and friends.

•For sale, for rent, real estate and even business signs may not be permitted

•The Articles of Incorporation   

The Articles of Incorporation will explain the powers that are granted to the Association and the Board.  It will explain the rights of the members, an indemnification clause for Directors and Officers as well as procedure for amending the Articles.

•A copy of the Application to Join the Condominium Association.

Home Owner Association Documents and Condominium Documents are normally available from the County Clerk's Office; many of them are now offering an online service.   For further and more in-depth information about condo docs and Home Owner Associations, take look at http://www.myFlorida.com/dbpr/lsc/index.html

It's not too early to file for a property tax exemption for next year;  filing now will allow property owners to beat the rush that normally occurs early in the year as people try to beat the March 1 deadline.

Any Florida property owner with legal title to a home and who uses it as his or her permanent, primary residence by Jan. 1 is eligible for the exemption.   Homeowners making their first claim at this time should contact their respective county property appraiser's office to find out how best to file for the exemption -- many offices offer applications online or will mail applications to residents. Homeowners may also file for a homestead exemption in person, bringing along the deed to their property or aproperty tax bill -- something to prove they own the home. Most property appraisers' offices will accept applications for homestead exemption until the March 1 deadline. Please call your local county property appraiser's office to find out more.Visit the link found on my web site for contact information.

http://www.optimaproperties.com/internet-resources-c10140.html

Here are the criteria to see if you qualify and the documentation you will need to provide along with your application:

$25,000 Homestead Exemption

Every person who has legal or equitable title to real property in the State of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible. First time applicants are required to furnish their social security number, and should have available evidence of ownership i.e., deed, contract, etc. If title is held by the husband alone, a wife may file for him, with his consent, and vice versa. If filing for the first time, be prepared to answer these and other questions:

1. In whose name or names was the title to the dwelling recorded as of January 1st?
2. What is the street address of the property?
3. Are you a legal resident of the State of Florida? (A Certificate of Domicile or Voter's Registration will be proof if dated prior to January 1st.)
4. Do you have a Florida license plate on your car and a Florida driver's license?
5. Were you living in the dwelling which is being claimed for homestead exemption on January 1st?

Additional $25,000 Homestead Exemption for persons 65 and older

Every person who is eligible for the homestead exemption described above is eligible for an additional homestead exemption up to $25,000 under the following circumstances: (1) the county or municipality adopts an ordinance that allows the additional homestead exemption which applies only to the taxes levied by the unit of government granting the exemption; (2) the taxpayer is 65 years of age or older on January 1 of the year for which the exemption is claimed; (3) the annual household income of the taxpayer (defined as the adjusted gross income as defined in s. 62, United States Internal Revenue Code of all members of a household) for the prior year does not exceed $20,000 (beginning January 1, 2001, this income threshold is adjusted annually by the percentage change in the average cost-of-living index); and, (4) the taxpayer annually submits a sworn statement of household income to the property appraiser not later than March 1.

$500 Widow's Exemption

Any widow who is a permanent Florida resident may claim this exemption. If the widow remarries, she is no longer eligible. If the husband and wife were divorced before his death, the woman is not considered a widow. You may be asked to produce a death certificate when filing for the first time.

$500 Widower's Exemption

Any widower who is a permanent Florida resident may claim this exemption. If the widower remarries he is no longer eligible. If the husband and wife were divorced before her death, the man is not considered a widower. You may be asked to produce a death certificate when filing for the first time.

$500 Disability Exemption

Every Florida resident who is totally and permanently disabled qualifies for this exemption. If filing for the first time, please present at least one of the following as proof of your disability: A certificate from a licensed Florida physician or a certificate from the United States Department of Veterans Affairs.

$5000 Disability Veteran

Any ex-service member disabled at least 10% in war or by service-connected misfortune is entitled to a $5000 exemption. If filing for the first time, please present a certificate from the United States Government.

$500 Exemption for blind persons

Every Florida resident who is blind qualifies for this exemption. If claiming exemption based on blindness, a certificate from the Division of Blind Services of the Department of Education or the United States Department of Veterans Affairs or the Federal Social Security Administration certifying the applicant to be blind is required. "Blind person" is defined as an individual having central vision acuity 20/200 or less in the better eye with correcting glasses, or a disqualifying field defect in which the peripheral field has contracted to such an extent that the widest diameter or visual field subtends an angular distance no greater than twenty degrees.

Service-connected total and permanent disability exemption

Any honorably discharged veteran with a service-connected total and permanent disability, surviving spouses of qualifying veterans and spouses of Florida resident veterans who died from service-connected causes while on active duty as a member of the United States Armed forces are entitled to an exemption on real estate used and owned as a homestead less any portion thereof used for commercial purposes.

Persons entitled to this exemption must have been a permanent resident of this state as of January 1st of the year of assessment.

Under certain circumstances the benefit of this exemption can carry over to the veteran's spouse in the event of the veteran's death. Consult your appraiser for details.

If filing for the first time, please bring a certificate from the United States Government or United States Department of Veterans Affairs as your proof of a service-connected disability or death of your spouse while on active duty.

Exemption for totally and permanently disabled persons

1. Any real estate used and owned as a homestead, less any portion thereof used for commercial purposes by any quadriplegic shall be exempt from taxation.
2. Any real estate used and owned as a homestead, less any portion thereof used for commercial purposes, by a paraplegic, hemiplegic or other totally and permanently disabled person, as defined in Section 196.012(10), F.S., who must use a wheelchair for mobility or who is legally blind, shall be exempt from taxation.

Persons entitled to the exemption under number two (2) above, must be a permanent resident of the State of Florida as of January 1st of the year of assessment. Also, the prior year gross income of all persons residing in or upon the homestead shall not exceed the amount of income, set forth in section 196.101(4), F.S., adjusted annually by the percentage change of the average cost of living index issued by the United States Department of Labor. Gross income shall include United States Department of Veterans Affairs benefits and any social security benefits paid to the person. A statement of gross income must accompany the application.

If filing for the first time, please bring a certificate from two (2) licensed doctors of this state or a certificate (per s. 196.091, F.S.) from the United States Department of Veterans Affairs.