Statutory Exceptions for Commercial Condominiums
While strictly commercial condominiums are governed by many of the same requirements of the Condominium Act as residential and mixed-use condominiums, there are exceptions. While not an exhaustive list, here are some of those exceptions:
Insurance: Commercial condominiums are not required to follow the insurance requirements stated in Section 718.111(11), Florida Statutes.
Unit Owner Inquiries: Commercial condominiums do not have the obligation that residential condominiums have to respond to unit owner inquiries as stated in Section 718.112(2), Florida Statutes.
Voting and Elections: Commercial condominiums are not prohibited from using general proxies. For elections, commercial condominium board candidates do not have to meet statutory legal and financial eligibility requirements, and co-owners of a unit in a commercial condominium are not restricted from serving on the board at the same time. Also, commercial condominium unit owners can vote in an election via proxy, and they are not required to vote via written ballot or voting machine or otherwise so as to maintain a secret vote. See Section 718.112(2), Florida Statutes.
Board Terms: Board term limits in a commercial condominium are not required to expire at the annual meeting. Also, commercial condominium board directors are not governed by statutory term limits. See Section 718.112(2), Florida Statutes.
Board Meetings: Only residential condominium boards are required to meet once a quarter. See Section 718.112(2), Florida Statutes.
Board Director Education: Only residential condominium board directors are required to certify in writing that they have read and will uphold the association’s governing documents and to take approved educational classes. See Section 718.112(2), Florida Statutes.
Building Requirements: Commercial condominiums are not required to obtain structural integrity reserve studies, retrofit, or follow the hurricane protection requirements in the Condominium Act. See Sections 718.112(2) and 718.113(5), Florida Statutes.
Alternative Dispute Resolution: The alternative dispute resolutions provided in Section 718.1255(7) only apply to commercial condominiums if such applicability is specifically stated in the declaration of condominium.
Termination: Certain statutory termination provisions only apply to residential condominiums. See Section 718.1255(7), Florida Statutes.
While this list is intended to be helpful, the obligations of commercial condominium associations are also governed by each association’s governing documents. Also, the age of a condominium may result in the application of different statutory obligations. Therefore, before presuming that a commercial condominium may not be required to follow the statutory requirements listed above, be sure to consult with legal counsel for your association.
