Florida Resident Owned Communities, Inc.
Florida Resident Owned Communities, Inc.

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2017 Legislative Action

Estoppel Certificates


The Florida Legislature has completed is regular session for 2017. FLAROC followed the session closely through its lobbyist and legislative counsel. Certain bills have been enacted that, if approved by the governor, will have an impact on resident owned communities (ROC’s).

The intent of this article is to alert the directors of ROC’s as well as their membership to one of those bills.


Senate Bill SB 398 – Estoppel Certificates:

Portions of Florida Statues Chapters 718, 719, and 720 will be amended to add much more specificity to the requirements for estoppel certificates if the bills are approved by the governor.


The following summary of the bill is taken directly from the Florida Senate website:


“The bill revises requirements for estoppel certificates for condominium, cooperative, and homeowners’ associations. Under current law, when an ownership interest in a condominium unit, cooperative unit, or homeowners’ parcel is transferred, the new owner is jointly and severally liable with the previous owner for unpaid assessments owed to a condominium, cooperative, or homeowners’ association. Unpaid assessments may also become a lien on the property. Purchasers may request that the seller provide an estoppel certificate from the condominium, cooperative, or homeowners’ association to protect against undisclosed financial obligations so that title to the property may be transferred free of any lien or encumbrance in favor of the association. An estoppel certificate certifies the amount of any total debt owed to the association for unpaid monetary obligations by a unit or parcel owner as of a specified date.


The bill:

  • Revises the period in which an association must respond to a request for an estoppel certificate from 15 days to 10 business days.
  • Requires an association to designate on its website a person or entity with a street or e-mail address for receipt of a request for an estoppel certrificate (sic).
  • Provides an estoppel certificate delivered by hand, mail, or e-mail has a 30-day effective period, and a certificate sent by regular mail has a 35-day effective period.
  • Identifies the persons who may complete the estoppel certificate on behalf of the board or association.
  • Specifies the information the association must provide in the estoppel certificate.
  • Prohibits an association from charging a fee for an amended estoppel certificate, and provides a new effective period of 30 days or 35 days, depending on the method used to deliver the amended certificate.
  • Provides an association waives the right to collect any moneys owed in excess of the amounts set forth in the estoppel certificate from any person, and his or her successors and assigns, who in good faith relies upon the certificate.
  • Prohibits an association from charging a fee for preparing and delivering an estoppel certificate that is requested, if it is not delivered within 10 business days.
  • Authorizes the use of a summary proceeding pursuant to s. 51.011, F.S., to compel compliance with the estoppel certificate requirements for a cooperative association, as existing law provides for condominium and homeowners’ associations.
  • Permits an association to charge a maximum fee of $250 for the preparation and delivery of an estoppel certificate, if there are no delinquent amounts owed to the association.
  • Permits an association to charge an additional $100 fee for an expedited estoppel certificate delivered within 3 business days after a request for an expedited certificate.
  • Permits an association to charge an additional maximum fee of $150, if there is a delinquent amount owed to the association.
  • Specifies the maximum fee an association may charge when it receives simultaneous requests for estoppel certificates for multiple units or parcels owned by the same person and there are no past due monetary obligations owed to the association.
  • Provides a lender or purchaser who pays for the preparation of an estoppel certificate may not waive the right to reimbursement if the closing does not occur and the prevailing party in a suit to enforce a right of reimbursement shall be awarded damages, attorney fees, and costs.
  • Authorizes a cooperative to charge a fee for preparing and delivering an estoppel certificate but the authorization must be established be a written resolution adopted by either the board or a written management, booking, or maintenance contract.
  • Requires the Department of Business and Professional Regulation to adjust the estoppel certificate fees for inflation every five years, rounded to the nearest dollar, and to publish the adjusted amounts on its website.

If approved by the Governor, these provisions take effect July 1, 2017.”

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