1. Section 718.117(12)(a), Florida Statutes, requires the allocation of proceeds from the sale of condominium property to be apportioned between the aggregate value of all units and the value of the common elements.
2. If a condominium’s declaration does not provide for an alternative method of allocation, the proceeds must be based on fair market values determined by independent appraisers.
3. If there is a partial termination of the condominium property, the aggregate values of the units and common elements must be separately determined. 1. Proceeds allocated to the common elements are apportioned among individual units based on their respective interests in the common elements as provided in the declaration.
2. The apportionment of proceeds to terminated units can be based on the valuation methods of an independent appraiser, the most recent market value, or the respective interests of the units in the common elements as specified in the declaration.
3. All proceeds allocated to terminated units must be distributed according to Florida Statutes, with priority given to the termination trustee’s fees and costs, followed by lienholders and creditors of the association, and finally individual unit owners based on their designated allocation as specified in the plan of termination or the Florida Condominium Act. 1. A notice must be delivered to all unit owners and lienholders at least 30 days before the first distribution of proceeds, providing a good faith estimate of the amount each will receive.
2. The notice must also outline the procedures and deadline for objecting to the proposed distributions.
3. After all known debts and liabilities of the association have been paid, any remaining assets can be divided by the termination trustee pursuant to the plan of termination.
4. The final distribution of assets cannot be made until the stated period for creditors to make claims has elapsed.
5. The final distribution can be made via money, property, or securities, in installments or as a lump sum, as long as it is in conformity with the plan of termination.
https://www.jimersonfirm.com/blog/2014/05/terminating-condominiums-according-florida-condominium-act-part-vii/
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