Property Owners Rejoice: Major Estoppel Win Against Associations

June 15, 2017

A three-year legal battle came to an end on April 28th, when HB483, estoppel reform legislation, cleared its final legislative hurdle. An estoppel certificate or letter is required on each real estate closing involving a homeowner’s or condominium association and is intended to provide a full breakdown of expected and delinquent dues or assessments, special assessments, late fees, and violations.estoppel letter

As of yesterday, June 14, 2017, when Governor Rick Scott signed this into law, property owners with homeowners or condominium associations now can rest easy with mandatory caps on estoppel costs. In the past, associations were charging hundreds of dollars for estoppels which hiked up loan amounts, closing costs, and frustrations with everyone involved in the closing. In addition, title companies, realtors, brokers, closing agents, and mortgage brokers can now provide more accurate quotes to their customers.

The law goes into effect on July 1st and requires estoppel certificates to be provided within 10 days of the initial request and be valid for a minimum of 30 days. For owners who are current on their dues, the estoppel fee cap is $250. For owners who are delinquent on their dues, an additional fee of $150 can be charged. For rush estoppels, the fee cap is $100 for rush deliveries within 3 days.

For an example Estoppel Certification, please see Sapphire Title & Escrow’s Guidelines

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