Planning to sell or buy a condo in Florida? In that case, you should get familiar with municipal utility letters, lien searches, and estoppel letters. These are often necessary for closing a deal.
What Are Condo Associations in Florida?
If you aren’t a Florida native, learning a couple of things about condo associations may be helpful. Actually, condo associations are just one type of planned community associations in the Sunshine State. Other types include the following:
- Planned Community HOAs
- Townhouse HOAs
- Housing Cooperatives
Every condo unit in Florida is part of a condo association. CAs manage the upkeep of the common areas as well as of the building exteriors. In fact, the latter duty is the main difference between CAs and HOAs in Florida. If a house belongs to an HOA, the homeowner is responsible for taking care of the exterior.
CAs are regulated by The Florida Condominium Act, Statute §718.101. They are managed by the board of directors. These elected individuals are responsible for finances and management.
What Are Municipal Utility Letters and Lien Searches?
We are all well aware of how debts work. An owner of a condo may owe money to a condo association, right? Now imagine that a fee is attached not to a person, but to the property itself. In that case, it may be harder to unearth.
For example, a condo you are planning to buy may have unpaid utility bills attached to it. In that case, a municipal utility letter is needed to verify that there are no unpaid bills for water, sewer, or other utilities.
Unrecorded liens may not come up during a normal title search, which is why professional municipal lien searches are important. These help uncover whether the condo has any claims placed on it by the municipality. Unpaid taxes are some of the most common reasons why a condo can have a municipal claim attached to it.
What Are Estoppel Letters?
The word estoppel originates from legal jargon. In court, to estop someone means to prevent them from making assertions or from taking their word back.
Estoppel letters for condo associations specify any fees or charges against the condo you are planning to buy or sell. It is important to keep in mind that in Florida, new owners are liable to the previous owners for any financial obligations to the condo association.
Why You May Need Help with Estoppel Letters in Florida
You may want to opt for professional estoppel search services in Florida if a condo association has been dissolved. Also, some condos may belong to condominium associations and HOAs. In those cases, a thorough search is important to make sure no unexpected fees come up at the last moment, jeopardizing your deal.
At Florida Lien Search, we are committed to helping our clients navigate lien searches in Florida. If you aren’t that familiar with Florida laws yet, and are planning to buy a condo from a condo association in Florida, contact us today.