Community Update

Reserve Studies Explained: What They Are and How Often You Should Update Them

By: Michelle H. Kaiser

A reserve study is a financial planning tool used by condominium associations, homeowners’ associations, and cooperatives in Florida to anticipate and prepare for the cost of the repair (deferred maintenance) and replacement (capital expenditure) of the association’s common assets prepared by an expert (typically an engineer, architect, or a certified reserve specialist).

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How Can Condominium Associations Enforce Short-Term Rental Bans?

By: Jay Roberts

Previously, in Can We Ban Short-Term Rentals in Our Condominium? we discussed what internal actions must be taken in order for your condominium association to ban short-term rentals. This article presupposes that your association has taken action to amend its condominium documents and now seeks to enforce the new short-term rental ban.

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Installing Security Cameras in Your Condominium

By: Nicolas M. Jimenez

There are countless reasons that your condominium association may benefit from installing security cameras around the condominium. However, your condominium association should always consult its legal counsel before doing so, as security cameras often trigger nuanced issues that risk civil and criminal liabilities that may not be immediately apparent to your community.

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Pepe v. Whispering Sands Condominium Ass’n, Inc.
351 So.2d 755

By: Joseph Markovich

THIS CASE is a landmark decision in Florida law because it established several important aspects of a declaration of condominium. The court held that the provisions of a declaration are in the nature of a contract, setting out the mutual rights and obligations of the parties thereto. These terms generally cannot be impaired or diminished except as specified in the declaration itself or as required by law. As a result, the declaration has a lasting, property-based effect similar to a covenant running with the land, rather than being a mere contract between individuals.

The dispute centered on a condominium complex divided into several legally separate sections, all managed by a single association under identical declarations. The association wanted to spread maintenance costs equally among all unit owners, including costs for common elements specific to certain sections. To achieve this, the association held a straw vote, with 224 owners in favor and 23 opposed, and then adopted a resolution to prorate these expenses equally, regardless of which section each owner belonged to. One owner disagreed with this approach and filed a lawsuit seeking declaratory relief.

The court ruled that changes to how expenses are shared cannot be made through a simple resolution or straw vote. It explained that a straw vote is very different from the formal amendment process, which involves greater solemnity, deliberation, and debate – especially when property rights and obligations are involved. The court in this case required extraordinary approval to change how expenses are shared. The law was later amended to add 718.110(4), Florida Statutes, which provides, in pertinent part, that any amendment to a declaration changing the proportion or percentage of common expenses must generally be approved by the record owner of the unit and all record owners of liens on that unit, as well as by all record owners of every other unit in the condominium.

THIS CASE has had a significant and lasting impact on Florida condominium law. It has influenced a wide range of issues, including how expenses are allocated among unit owners and how contract rights are protected within condominium communities. By shaping the way property rights and obligations in declarations are understood, the case has provided important guidance for associations, unit owners, and courts alike.