In the midst of this real estate crisis Governor Crist signed in SB 1196 & 1222 into law

In the midst of this real estate crisis Governor Crist signed in SB 1196 & 1222 into law. Below are some major points of the bill.

Bulk Buyers- There are now two classifications, "bulk buyer" and "bulk assignee"

"A 'bulk assignee' acquires more than seven (7) units in a condominium, and also receives an assignment of some or substantially all of the rights of the developer, which can be set forth as an exhibit to the deed from the original developer, or as a separate instrument. The assignment is to be recorded in the public records of the county where the property is located."

"A 'bulk buyer' is also a party who acquires more than seven (7) units, but does not receive an assignment of developer rights other than the right to: 1. Conduct sales, leasing and marketing activities within the condominium. 2. Be exempt from making working capital contributions as a result of the bulk purchase, and 3. Be exempt from any rights or first refusal held by the association and otherwise applicable to subsequent transfers of title from the bulk owner."

Insurance - This is a great aspect because it lowers the cost of owning a miami condo by removing the requirement that every owner must carry hazard insurance. It does require minimum $2,000 of property loss assessment coverage included in the condo owner's coverage.

Sprinkler Systems - Repeals the requirement to update sprinkler systems in condos over 75 feet high.

Past-Due Assessments on Foreclosures- This increases the requirement of lenders to cover 12 months of past due assessments or 1% of the original mortgage amount, whichever is less.

Denial of Common Areas - This allows association to deny owners or any occupant the right to use amenities except (utility services, elevators or parking spaces) if the owner is 90 days past due on their association payments. The association has the right to also deny voting rights. You basically have to pay-to-play...

Diverting Tenant Rent - If an owner is renting their unit and not paying the association this rent can be diverted to the association. There are a lot of issues with owners renting their units that are in pre-foreclosure (short-sale) and pocketing the money never paying the mortgage or association. Now this income can go to the association to help pay for the amenities this tenant is using.