Florida estoppel requirements

Started by BobB31 • 9 replies • 577 views

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BobB31 (Florida)
Posts: 178

Posted:

48-unit single-family townhouse HOA - 4 buildings each containing 12 townhouses.

We have found out the main disconnect boxes for the buildings are in various states of decay due to the conditions inherent with being located across the street from the Atlantic ocean. One building's is very severe and needs to be replaced within the year. Another's is in fair condition and could be delayed for several years. The other two are in poor condition but not as severe as the first, so those could be delayed for a year or two.

We will be discussing options at the next board meeting, whose agenda contains a possible special assessment announcement. We have several options:
1. the argument can be made that these boxes are not common elements and that the HOA is not responsible for repairs. This would require each unit to contribute about $510 to be paid directly to the electrician doing the work.
2. The argument could also be made that there is a safety issue affecting multiple units and buildings and that the HOA does need to enforce the replacement via special assessments. There is the possibility of defraying some of the cost by using money that was budgeted to be used this year but was not used. This would reduce the special assessment to about $260.

A realtor has just requested an estoppel certificate for a unit that is about to be sold. We are not sure what to say about this situation. The unit is in the building with the worst boxes. So do we say that unit owner will be facing a cost between 260 and 500 to repair an electrical safety issue?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

They are not facing it until the special assessment gets approved by the HOA membership. So they are not facing any additional charges till it's voted and agreed upon.

Former HOA President

PestY
Posts: 128

Posted:

typical attorney question:

Are there any 'special assessments' presently owing or being contemplated?

The key words: being contemplated.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Check your governing docs. It should state whether the disconnect boxes are common elements or part of the units, it shouldn't be open for debate. If your docs are anything like mine, then something that serves multiple units is considered a common element - something that serves only one unit is part of the unit, even if it is located on the exterior of the building.

If the boxes are common elements and there is a safety issue involved, then the association should deal with it promptly. You don't need to add a lawsuit for negligence on top of your routine maintenance costs.

AugustinD
Posts: 5,144

Posted:

I recommend the HOA go ahead and write a short statement (an estoppel certificate) with "just the facts" about the status of the electrical disconnect boxes, closing with, "the current anticipated cost per unit in Building ____ of replacing these boxes is estimated to be between $260 and $500."

I do not think this is a big deal. As I think folks here know, full disclosure of anything that feels like a "material defect" is vital in a real estate transaction.

BobB31 (Florida)
Posts: 178

Posted:

Quote:

Posted By CathyA3 on 07/28/2019 7:41 AM
Check your governing docs. It should state whether the disconnect boxes are common elements or part of the units, it shouldn't be open for debate. If your docs are anything like mine, then something that serves multiple units is considered a common element - something that serves only one unit is part of the unit, even if it is located on the exterior of the building.

The boxes are not mentioned in the docs. The only mention of "electric" is in the easements.

Quote:

Posted By AugustinD on 07/28/2019 7:43 AM
I recommend the HOA go ahead and write a short statement (an estoppel certificate) with "just the facts" about the status of the electrical disconnect boxes, closing with, "the current anticipated cost per unit in Building ____ of replacing these boxes is estimated to be between $260 and $500."

I do not think this is a big deal. As I think folks here know, full disclosure of anything that feels like a "material defect" is vital in a real estate transaction.

That will work, thanks

KerryL1 (California)
Posts: 14,550

Posted:

To tell the truth, I don't know what a disconnect box is. Is there one for each unit?

Our CC&Rs say that the interior portion of, say, an electrical outlet is the unit's separate property. The exterior of same "are not part of the unit."

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am assuming the "disconnect box" is the box that has the meter in it? Or atleast a box that sits next to the meter with a handle to disconnect power? Usually they are together and may be referred to as a "disconnection box".

When I lived in an apartment years ago, my power shut off. Was the only unit in the 8 unit complex it happened to. The management called electric company and a contractor to come fix the issue. I didn't have to pay for the repairs but I did pay for my own utilities.

This is what I would equate happening in this situation. Think the HOA should be replacing the boxes. It's a mechanical thing that provides electricity.

If I were to do this assessment this is how I would do it. Would get the quote for the work for ALL the work to be done. Not just the most dangerous one. I would then do the special assessment amongst all the HOA members to pay for the work for all the boxes. However, considering the time line of collecting money, I'd have the worst get fixed first then stage out the other 3 boxes on a time line.

You know your not going to get all the money from every member. So put the project on a time line. The contractor should be willing to meet the time schedule requirement. If not, then find another contractor if not willing to do the job in phases.

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Bob

As of now you all have no idea what you are going to do so all is good. Sign the Estoppel saying so.

BobB31 (Florida)
Posts: 178

Posted:

Quote:

Posted By MelissaP1 on 07/28/2019 11:16 AM
I am assuming the "disconnect box" is the box that has the meter in it? Or atleast a box that sits next to the meter with a handle to disconnect power?

Yes to the latter. These are used by emergency first responders to cut power to the entire building when they need to make sure there is no danger of short-circuits causing more problems for them when they enter the premises.

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