Q Just over a year ago, my wife and I bought into a four-unit condo complex. One of the units is about twice the size of all the others, such that this
shareholder owns about 40% of the shares. She's been in this building over 30 years. The rest of us each own about 20%. Another resident has been in the building about 20 years. The last resident bought their unit about 7 months after we bought ours and
moved in. We never paid much attention to how things were run or decisions
made, assuming such a small complex just ran things informally through
consensus. Fast forward to our first board meeting. Notice was just sent by
e-mail to all of us and was nothing formal. We showed up at the meeting, after a bit of song and dance and a reference to
the additional costs associated with "transients," such as ourselves and the
other newbies, one of the older folks brought forward a vote on a flip tax of
1.5% of gross sales prices, the other seconded, and a vote was held. I stayed quiet (my wife wasn't at the meeting) and the other newbies, after
being pressured into believing this was typical in all condo complexes, agreed.
Since that meeting, I spoke with the newbies and they thought the structure of
the meeting was a bit unfair (to say the least). I have also read our proprietary lease and bylaws and think this was definitely
not adopted in a legally enforceable manner. I tried to speak with our major shareholder (leaving her numerous voicemails)
and after getting no response, wrote her an e-mail to the effect that I didn't
think they followed proper procedures and would be happy to discuss a
compromise that would work for everyone. A week later, I received a letter directly from the condo's attorney telling me
the flip-tax was duly adopted by the condo's board of directors and legally
enforceable. Since then, I have just tried to determine who in fact the
directors and officers of my co-op are, to no avail. I'm convinced the "informality" of the meeting and historic operations are meant
to just make it clear that the board members just do what they want, and the
rest of us are left at their mercy. Do you have advice as to what we can do?
—Confused in Coral Gables
A While you indicate that you live in a condominium, you later reference a “proprietary lease,” which would indicate that you may actually live in a cooperative,” notes Attorney Michael E. Chapnick, managing partner and founder of Chapnick
Community Association Law, P.A. in Boca Raton. “While the two forms of ownership are similar, there are some very distinctive
differences between the two. Condominiums are governed by Chapter 718, Florida
Statutes, in addition to their Declarations of Condominium, Articles of
Incorporation, Bylaws, and Rules and Regulations. Cooperatives are governed by Chapter 719, Florida Statutes, as well as their
Proprietary Leases, Articles of Incorporation, Bylaws, and Rules and
Regulations. In a cooperative, the association owns the units, and an owner’s interest consists of shares and a corresponding right to lease the unit. For condominiums, the unit owner owns that part of the property delineated as a “unit” in the Declaration, and owns an undivided share of the common elements in
common with all other owners. In either case, the procedures for amending the documents should be set forth in
the document that the Association intends on amending. If not, there are statutory default procedures that must be followed. As an owner, you are entitled to know who your board members are, and I would
recommend that you send a certified letter to the Association’s registered agent requesting that information. While there are statutory protections in place in the event that you do not
receive that information, the easiest way to find out may simply be to go to
www.sunbiz.org and to do a business name search for your association.”
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