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Is Your Vendor Complying with the Florida HOA Estoppel Law?

Nov 25, 2019
Florida HOA Estoppel Law

HOA estoppel certificates are an essential part of title commitment and of real estate due diligence. That’s why title companies and real estate attorneys in Broward, Palm Beach and Miami-Dade counties trust All American Document Services with this important task.

Senate Bill 398 and the 2017 Florida HOA estoppel law was great for our clients because it reduced the sometimes exorbitant fees charged by community associations and streamlined the process of requesting estoppel letters from these same associations. 

But it also created risk because of new requirements on the vendor side. This blog will explain the need for the Florida HOA estoppel law, the risks it creates for lawyers and title companies, and how AADS ensures that all the requirements are being followed properly. 

Why the Florida HOA Estoppel Law was Needed 

The main thrust of Senate Bill 398 was to cap fees for dues letters/certification requests at $250. Previously, many management companies and community associations were tacking on mysterious fees ranging from $5 to $50 with dubious names like “online misc.” 

Now, when an account is delinquent, associations may only charge an additional $150. Fees for expedited requests up to $100 are allowed under the law. Total fees for expedited, delinquent estoppel certificates from one association may not exceed $500. 

While the law is curbing the bad behavior of some associations, it has had the unintended consequence of causing some management companies that hadn’t been price gouging to raise their prices to the maximum amount. 

Information Required on an HOA Estoppel Certificate

Though most management companies and associations happily provide all required information, our public records research experts know exactly what to look for and how to deal with the associations when they’re not adhering to the law by providing: 

  • Scheduled assessments levied against the property
  • The date the scheduled assessment has been paid through
  • The amount and the due date of the next installment 
  • Itemized list of any other fees that will become due, such as special assessments 
  • Whether or not there is a transfer fee, resale fee, or capital contribution fee, and if so the amounts 
  • Any open violations
  • If buyer approval is required by the board of directors of the community association 
  • Whether there is the right of first refusal and if the association has exercised that right
  • Contact information for all associations of which the property is a member
  • Contact information for all insurance of the association

AADS is Trusted for HOA Estoppel Letter Services in South Florida

All American Document Services is trusted by Florida title agents and attorneys to deliver HOA estoppel letters in Broward, Palm Beach and Miami-Dade counties. 

You may also be interested in our full title searches, owner verification, and chain of title searches. Most searches are completed within 24 hours, and we provide paperless delivery.

Experience a quicker turnaround time, smoother delivery, and superior customer care with the AADS Advantage.

Place your order today!

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