Florida Co-op Mortgage Lenders-Refinance

What is the difference between a Co-op and a condominium? In a condominium, you own your unit and a share of the common elements (like pool, parks, hallways, and amenities). You receive a deed to your unit. With a cooperative, you don’t own your coop unit. Instead, you own shares in a corporation that owns the entire property. You get a proprietary lease or occupancy agreement that gives you the right to live in your specific unit.   

How is the Florida Department of Business and Professional Regulation (DBPR) involved in the oversight of cooperatives? The DBPR has a role in regulating Florida condominiums and cooperatives and offers FAQs on their website regarding association governance, financial matters, unit owner rights, and dispute resolution.

What are my voting rights in the cooperative association? Your voting rights are typically determined by the cooperative documents (articles of incorporation, bylaws). Generally, each unit owner has one vote, but the specific rules can vary.

What restrictions exist in the cooperative documents on my right to use my unit? Cooperative documents often contain rules regarding the use of units. These can cover things like noise levels, alterations to the unit, and whether you can operate a business from your unit. It’s crucial to review these documents before purchasing.

What restrictions exist in the cooperative documents on the leasing of my unit? Cooperatives often have stricter rules on leasing compared to condominiums. The documents might limit the number of times you can lease your unit, the minimum lease duration, or require board approval of tenants.

How much are my assessments to the cooperative association for my unit type, and when are they due? Assessments are fees paid by unit owners to cover the operating expenses of the cooperative, such as maintenance of common areas, insurance, and management. The amount depends on your unit type and the association’s budget. The due dates are usually outlined in the cooperative documents or determined by the board.

Do unit owners have a right to access association records? Yes, Florida law generally grants unit owners the right to inspect and copy official records of the association. There are specific procedures for requesting access, and associations can face penalties for denying legitimate requests.  

What are the rules regarding pets, leasing, or altering my unit? These rules are usually found in the cooperative documents and can vary significantly between associations. They might specify pet size or breed restrictions, limitations on leasing frequency, or procedures for getting approval for unit alterations.  

What are the requirements for association budgeting and reserves? Florida law and cooperative documents outline requirements for preparing budgets and maintaining reserve funds for major repairs and replacements of common elements. There are different levels of financial reporting required based on the association’s revenue.

How can disputes between a Florida co-op unit owner and the association be resolved? Disputes can sometimes be resolved through communication with the board or management. Florida law also offers options for alternative dispute resolution, such as mediation or arbitration. In some cases, legal action may be necessary.    

Common Issues in Florida Cooperatives:

• Maintenance and Repairs: Disputes over the responsibility for maintenance of common areas and individual units, as well as the adequacy of maintenance, are common.
• Rule Enforcement: Inconsistent or selective enforcement of community rules can lead to conflict. Some rules might also be perceived as overly restrictive.
• Communication Problems: Lack of clear and consistent communication between the board, management, and unit owners can lead to misunderstandings and disputes.
• Board Governance Issues: These can include allegations of inconsistent treatment of owners, exceeding board authority, or breaches of fiduciary duty by board members. Filling board vacancies can also be a challenge.
• Financial Management: Issues can arise with budgeting, reserve funding, special assessments, and allegations of financial impropriety.
• Resale and Financing Difficulties: Due to the unique nature of cooperatives, potential buyers might face challenges with lenders and insurers, making resale more complex than for condominiums.
• Owner Disputes: Conflicts can arise between unit owners regarding noise, pets, parking, or alterations to units.  
• Access to Records: Disputes can occur when associations fail to provide access to official records as required by law