1. Two main scenarios lead to the termination of condominiums: a nearly uninhabitable condition or a developer’s offer to purchase the property for alternative development.
2. The Florida Condominium Act’s termination provisions were revised in 2007 to include the optional termination process, which eased the strict requirements for termination.
3. The optional termination process now requires approval by at least 80 percent of the total voting interests of the condominium, with a maximum of 10 percent of the total voting interests rejecting the plan.
4. The association’s declaration can provide for a lower approval percentage, which would then control the requirements.
5. The written plan of termination can be for redeveloping all or a portion of the condominium property.
6. The same voting procedures apply regardless of whether the developer’s plan involves a portion or all of the condominium property. – The optional termination process does not require mortgage lenders or holders to vote on the termination plan if it satisfies all outstanding mortgage liens.
– If the plan does not satisfy outstanding mortgage liens, a vote of the mortgage lenders or holders is required for approval.
– If more than 75 percent of the condominium units are timeshare units, a vote of the mortgage lenders or current holders is required regardless of the satisfaction of mortgage liens.
– Mortgage lenders or holders can contest the plan through legal action if they are required to vote on the termination plan.
https://www.jimersonfirm.com/blog/2014/04/terminating-condominiums-according-florida-condominium-act-part-ii/
Leave a Reply