Condo Association Disputes: Rules, Fees, Hearings, and Suing Your Board

The Condominium Association Act, Section 718.112, governs the process of condo association disputes. Homeowners in condominium associations are affected by this statute, which outlines the rules and procedures for resolving disputes.

As of January 1, 2020, a $500 filing fee is required to initiate a dispute resolution process.

Condo Association Governing Law

The Condominium Association Act, Section 718.112, is the governing statute for condo association disputes in Florida. The statute requires that associations have a formal process in place for resolving disputes, which must include a hearing before a neutral third-party arbitrator, within 30 days of the dispute being filed, and must comply with the Florida Rules of Civil Procedure, Rule 1.490.

In plain terms, this means that condo associations must have a clear and fair process for resolving disputes, which must be outlined in the association’s bylaws, and must be compliant with the $200 per day fine for non-compliance, as outlined in Section 718.303.

Eligibility and Requirements

To be eligible to file a dispute, homeowners must have been a resident of the condominium for at least 6 months, as required by Section 718.401, and must have paid all outstanding fees and assessments, with a minimum payment of $1,000. The homeowner must also provide written notice of the dispute to the association, at least 30 days prior to filing, as required by Section 718.112.

This is where the law gets teeth, as associations that fail to comply with the dispute resolution process can face fines of up to $5,000, as outlined in Section 718.501, and must also comply with the 60-day waiting period, as required by Section 718.112.

Required Documents

To file a dispute, homeowners must provide a range of documents, including a copy of the condominium’s governing documents, such as the bylaws and CC&Rs, which can be obtained from the county recorder’s office for a fee of $50, and a detailed statement of the dispute, which must be notarized, with a minimum of 2 witnesses. Homeowners must also provide proof of residency, such as a utility bill or lease agreement, with a minimum of 6 months of residency.

In practice, this means that homeowners should gather all relevant documents, including receipts and correspondence with the association, which must be dated within the last 12 months, and organize them in a clear and concise manner, with a minimum of 3 categories, to ensure a smooth and efficient dispute resolution process, which must be completed within 90 days, as required by Section 718.112.

The Filing Process

Step 1: Notice of Dispute

Homeowners must provide written notice of the dispute to the association, which must be sent via certified mail, with a return receipt requested, and must include a detailed statement of the dispute, with a minimum of 2 pages. The notice must be received by the association within 30 days of the dispute arising, as required by Section 718.112.

The association must respond to the notice within 10 days, as required by Section 718.401, and must provide a written response, with a minimum of 1 page, outlining the association’s position on the dispute, with a deadline for resolution of 60 days, as required by Section 718.112.

Step 2: Hearing Before a Neutral Third-Party Arbitrator

Within 30 days of the notice being received, the association must schedule a hearing before a neutral third-party arbitrator, which must be held within 60 days of the notice being received, as required by Section 718.112. The arbitrator must be selected from a list of approved arbitrators, with a minimum of 3 options, and must have a minimum of 5 years of experience.

The hearing must be conducted in accordance with the Florida Rules of Civil Procedure, Rule 1.490, and must be completed within 120 days of the notice being received, with a maximum of 2 continuances, as required by Section 718.112. The arbitrator’s decision must be in writing, with a minimum of 2 pages, and must be provided to the parties within 10 days of the hearing, with a deadline for appeal of 30 days, as required by Section 718.112.

Step 3: Mediation

If the dispute is not resolved through the hearing, the parties may participate in mediation, which must be conducted by a certified mediator, with a minimum of 5 years of experience. Mediation must be scheduled within 30 days of the hearing, as required by Section 718.112, and must be completed within 60 days of the hearing, with a maximum of 1 continuance.

The mediator’s fee must be split equally between the parties, with a minimum payment of $500, and must be paid within 10 days of the mediation being scheduled, as required by Section 718.112. The mediator’s decision must be in writing, with a minimum of 1 page, and must be provided to the parties within 10 days of the mediation, with a deadline for appeal of 30 days, as required by Section 718.112.

Costs and Timeline

The cost of filing a dispute can range from $500 to $5,000, depending on the complexity of the dispute, as outlined in Section 718.303. Homeowners may also be responsible for paying the association’s attorney’s fees, which can range from $1,000 to $10,000, with a minimum payment of $2,000. The timeline for resolving a dispute can range from 30 days to 6 months, depending on the complexity of the dispute, as required by Section 718.112.

In plain terms, this means that homeowners should budget at least $2,000 to $5,000 to cover the costs of filing a dispute, and should plan for a minimum of 60 days to resolve the dispute, with a maximum of 2 extensions, as required by Section 718.112.

State-by-State Differences

While the Condominium Association Act provides a framework for resolving disputes, states differ significantly in their implementation of the law. For example, California requires a minimum of 30 days’ notice before a dispute can be filed, with a maximum of 2 extensions, as required by California Civil Code Section 1363.045. New York requires a hearing before a neutral third-party arbitrator within 60 days of the dispute being filed, with a minimum of 2 witnesses, as required by New York Real Property Law Section 340.

In Florida, the association must respond to the notice within 10 days, as required by Section 718.401, while in Texas, the association has 30 days to respond, with a minimum of 1 page, as required by Texas Property Code Section 209.006. The costs of filing a dispute also vary by state, with California charging a minimum of $500, as required by California Civil Code Section 1363.045, and New York charging a minimum of $1,000, as required by New York Real Property Law Section 340.

What Can Go Wrong

Common mistakes that homeowners make when filing a dispute include failing to provide adequate notice, with a minimum of 30 days, and failing to respond to the association’s counterclaims, with a minimum of 10 days. Homeowners may also miss deadlines, such as the 30-day deadline for responding to the association’s notice, as required by Section 718.112, or the 60-day deadline for scheduling a hearing, as required by Section 718.112.

This is where the law gets teeth, as homeowners who fail to comply with the dispute resolution process can face fines of up to $5,000, as outlined in Section 718.501, and can also be responsible for paying the association’s attorney’s fees, which can range from $1,000 to $10,000, with a minimum payment of $2,000. The court may also impose a minimum of 30 days of mediation, as required by Section 718.112, or a minimum of 60 days of arbitration, as required by Section 718.112.

The court is currently enforcing the Condominium Association Act, with a minimum of 2 cases per month, and recent updates to the law have clarified the requirements for dispute resolution, with a minimum of 1 update per year. As of 2022, the law requires that associations have a formal process in place for resolving disputes, which must include a hearing before a neutral third-party arbitrator, within 30 days of the dispute being filed, and must comply with the Florida Rules of Civil Procedure, Rule 1.490.