New Estoppel Requirement Provided by Dania S. Fernandez, Esq.
Below is a summary of the approved SB 398, Relating to Estoppel Certificates.
The below guidelines must be followed effective July 1, 2017.
Maximum amount of the estoppel certificate fee is the following:
- If the owner is not delinquent, then max estoppel fee is $250
- If owner is delinquent an additional $150 can be charged. A total of $400 max for a delinquent owner.
- If a rush request is made an additional $100 can be charged. A total of $500 for the delinquent owner and $350 for the non-delinquent owner.
There is also a maximum that can be charged to the owner requesting multiple estoppel certificates for units owned by the same person.
- If no delinquency, then the following:
- For 25 or fewer units, Max that can be charged is $750
- For 26 to 50 units, Max that can be charged is $1,000
- For 51 to 100 units, Max that can be charged is $1,500
- For more than 100 units, Max that can be charged is $2,500.
Request made due to a sale of a property:
- If the sale does not occur, a refund may be requested of the estoppel fee. The request for a refund must be in writing and no later than 30 days after the closing date. The refund must be given within 30 days of the written request.
Additional important points:
- Association must respond to an estoppel request within 10 days of the request.
- Estoppel must be provided by regular mail, hand delivery or email on the date the estoppel is issued not later.
- The Association website must have a designation of whom to contact either a person or entity (Management) with a street or email address to whom request can be made.
- An Association waives the right to collect any moneys owed more than the amount stated in the estoppel from anyone who relied in good faith on the estoppel.
- An estoppel certificate that is hand delivered or sent via email has a 30-day effective period. If sent by regular mail it has a 35-day effective period.
There are new formatting guidelines for the actual estoppel form. The Estoppel Certificate must contain the following information:
- The date of issuance
- Name(s) of the unit owners(s) as shown in the official records of the association
- Unit designation and address
- Parking or garage space number as shown in the official records of the association
- If account is delinquent, the Attorney’s name and contact information. No fee may be charged if this information.
- Fee amount for the preparation of the Estoppel and delivery
- Name of person requesting certificate.
- Assessment information and other information:
Assessment Information: The estoppel certificate must include the following information in reference to the “Assessment Information”:
- The regular periodic assessment levied against the unity is $____per____. (insert frequency of payment.
- The regular periodic assessment is paid through _________ (insert date paid through)
- The next installment of the regular periodic assessment is due _____ (insert due date) in the amount of $_______.
- An itemized list of all assessments, special assessments, and other moneys owed on the date of the issuance to the association by the unit owner for specific unit is provided.
- An itemized list of any additional assessments, special assessment, and other moneys that are scheduled to become due for each day after the date of issuance for the effective period of the estoppel certificate. In calculating the amounts that are scheduled to become due, the association may assume that any delinquent amounts will remain delinquent during the effective period of the estoppel certificate.
The estoppel certificate must also contain the following “Other Information”:
- Is there a capital contribution fee, resale fee, transfer fee, other fee due ____(Yes) ____(No)… If yes, specify the type and the amount of the fee.
- Is there any open violation of rule or regulation noticed to the unit owner in the association official records? ___(Yes) _____(No)
- Do the rules and regulations of the association applicable to the unit require approval by the board of directors of the association for the transfer of the unit? ___(Yes) ____(No)…If yes, has the board approved the transfer of the unit? ____(Yes) _____(No)
- Is there a right of first refusal provided to the members of the association? ___(Yes) ____(No)…If yes, have the members or the association exercised that right of first refusal? ____(Yes) _____(No)
- Provide a list of, and contact information for, all other associations of which the unit is a member.
- Provide contact information for all insurance maintained by the association.
- Provide the signature of an officer or authorized agent of the association.
- The certificate may include additional information.
Download New Estoppel Requirement 2017 PDF