New Act Expected To Help Bulk Distressed Condominium Buyers in Florida

The large amounts of housing inventory needs to be reduced in order to prices for begin rising, in my opinion. The increased number of distressed properties has been a major reason for the enlarged inventory of properties. Investors with large amounts of pooled funds can help balance the housing inventory level back towards a normal equilibrium.


The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.


Below are some of the features of the new Act:



- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.


- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.



- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.


The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.


I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.


Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty

561-989-2100