Florida Bulk Condominium Owners Must Wait Another Year –

VetoGovernor Scott vetoes “Bulk Owner” provisions in last legislative session.

By Perry C. Rohan, MBA, LCAM

Florida House Bill 653 was, among other things, intended to extend indefinitely the establishment of rights available to “Bulk Buyers” and “Bulk Assignees” of condominium units that fall under Florida Statute 718.  Unfortunately, the bill in its final form did not make it past review with Governor Rick Scott, who vetoed the bill on June 26th, 2017

In 2010, the Florida Legislature passed the Distressed Condominium Relief Act (Act) in order to relieve developers, lenders, unit owners, and condominium associations from certain provisions of the Florida Condominium Act. The Act created categories of “bulk buyers” and “bulk assignees.”

A bulk assignee is a person who acquires more than seven condominium parcels as provided in a condominium community and receives an assignment of some or all of the rights of the original developer of that community. A bulk buyer is a person (or company) who acquires more than seven condominium parcels, does not receive an assignment of developer rights, but retains the right to conduct sales, leasing, and marketing activities within the condominium; is exempt from payment of working capital contributions and also be exempt from rights of first refusal of purchase.

The rights of Bulk Buyers and Bulk Assignees were particularly helpful to real estate investors seeking returns from distressed properties in condominium communities. The Florida Association of Realtors reports that in the 1st quarter of 2017, there were 1,568 “distressed condominium and townhome” transactions, where an estimated $180,320,000 in property value changed hands.

“My clients pay their association dues regularly and provide a valuable service to the tenants who rent their condominium properties”, says Uriel Uribe, Regional Director with FirstService Residential. Uriel’s Multi-Unit Owner Group provides property management services exclusively for bulk owners. He continues, “This bill would have been a tremendous help to our clients who, in many cases, have revitalized communities that were devastated by foreclosures and short sales.”  

Because the Act in 2010 was created in reaction to the massive downturn in the condominium market which had previously occurred throughout the state, it was not intended to become a permanent law. In fact, there were various extensions granted beginning in July 2012, again in July 2014, and then again in July 2015 which extended rights through July 2018.

Bulk Buyers and Bulk Assignees must now wait for another bill to be passed or hope for another extension or rights to be granted beyond July 2018.

Perry C. Rohan is the Director of Business Development for FirstService Residential in the Central Florida Region. Perry can be reached by email at perry.rohan@fsresidential.com

Author: rohanorganization

Perry C. Rohan, MBA, REALTOR, LCAM Licensed Real Estate Broker, Florida & New York CPM® Candidate – Institute of Real Estate Management Perry is the Director of Business Development and Client Services for FirstService Residential, North America's leading property management company. He is a licensed Florida Real Estate Broker with more than 15 years of sales, marketing and property management experience with single and multifamily residential investment properties, and condominium and homeowner associations. He has served in sales, sales management and marketing roles for more than 50 residential real estate developers, and Perry has also been involved in more than $600 million of sales and rental transactions, helping hundreds of buyers, renters and investors secure new homes and rental investment properties. Perry has served as a Community Association Manager responsible for directly managing condominium and homeowner associations involving more than 1100 residential units and operating budgets in excess of $2 million annually. He has previously served as a Regional Director for a property management company, providing supervisory leadership and oversight of 13 community association managers responsible for more 45 condominium and homeowner associations encompassing more than 8000 residential units. Perry has also served on the executive management team for the largest homeowners association in the United States, providing association management services for a 26,000 home community with more than 100 employees and an $8 million operating budget. He has an undergraduate degree (BA) in Marketing from the University of South Florida and a master’s degree (MBA) in business from the University of Miami. Perry is also a Florida licensed Community Association Manager (LCAM) and a licensed real estate broker in New York. TESTIMONIALS I am truly impressed with Mr. Rohan’s high level of professionalism… Calls and correspondence from residents are always handled promptly, courteously and then followed up with diligent work to expedite solutions. He quickly responds to emergency situations, supervises vendors and initiates repairs when needed. Mr. Rohan keeps our community operating like a smooth running machine. Dave S., President of the Board of Directors for Wellington Shores Perry Rohan stands out as the best property manager that I have experienced working with during my tenure as HOA President. He is self-motivated, proactive, professional, organized, respectful, and communicates well. I would strongly recommend Perry Rohan as Property Manager to any community or development that is looking for an outstanding and knowledgeable Property Manager. Shannon C., President of the Board of Directors for Shaughnessy Village

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