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Capitol
2010 Legislative Preview: Setting the Table
A look at the key issues that will shape the next session, which starts in March.
Housing
Condo Relief
 Bulk condo buyers currently are liable for builder defects. New legislation aims to temporarily change that. [Photo: Daniel Portnoy] |
Real estate attorneys say that Florida’s distressed real estate market could get a boost if lawmakers pass the Distressed Condominium Relief Act.
Under current law, anyone who purchases more than seven condo units —?or a lender who takes back a title through foreclosure — is deemed a “developer” and thus becomes liable for any construction defects on the property. “I realized a couple years ago, as the market started to turn down, that the way the law is written, these bulk buyers are going to be exposed to potential liability for all developer obligations —?and that is going to discourage bulk buyers,” says Ruden McClosky attorney Mark Grant.
Grant and Charles Brecker, a lawyer with Stearns Weaver, convinced Rep. Julio Robaina (R-Miami) and Sen. Eleanor Sobel (D-Hollywood) to introduce legislation that would remove developer liability for bulk buyers and bulk assignees who close their transactions within the next two years.
