Cedar Glen, Boca West: an 80% financing cap, no company owners and buyer screening

Up to 80% of the price. The covenant recorded in May 2009 applies to "all further and future purchases in the Community" (Art. VII § 4, OR 23206/26, p. 2). The buyers "shall not finance more than eighty (80%) of the purchase of the Lot / Residence". They also "may not in the future, at any time, finance or encumber more than eighty (80%) percent of the original purchase price".

It limits later borrowing too: a refinance or home-equity line may not take total debt above 80% of what the owner paid. It applies to purchases after 1 May 2009. The covenant states no consequence, such as a void conveyance, for a breach. A loan above 80% is therefore a question for the lender and underwriting before the contract becomes firm.

Only individuals. "No ownership of any Lot … and /or any Residence may be made by a corporation, Partnership or other form of ownership other than individuals" (Art. VII § 5, OR 23206/26, p. 2). The exceptions are a corporation, "as a financial institution or otherwise", that takes title by mortgage foreclosure, and a trust or family limited partnership formed for estate planning. On its face this bars an LLC buyer.

The master's Certificate of Compliance, the Country Club's approval of the buyer, and the steps Cedar Glen's covenants add:

• Notice of the contract. Within five days of accepting a purchase contract, the seller gives the association the buyer's name and mailing address and the closing date (§ 20, OR 23647/1684, p. 18).
• Screening. The association "may facially disapprove, without cause", any prospective buyer convicted of a first-degree felony or of child molestation (§ 19.4). The same applies to a second- or third-degree felony within the previous seven years.
• The fee. $250 for every purchaser, tenant or lessee, plus any further cost of the background check (§ 19.6).

The covenants set no deadline for the association to act on a buyer, and no right of first refusal. We ask the association in writing for its decision before closing.

A capital contribution of "one (1) quarterly assessment" on "all future conveyances of any ownership interest in a Lot" (§ 21, OR 23647/1684, p. 18). It is a special assessment, collectible like any other, and no exemptions are stated. The amount comes from Cedar Glen's estoppel. The $250 application fee is separate, and so are the master's capital contribution and the Club's Joining Fee.

In a voluntary sale "the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments" (Art. IV § 8, p. 9). Assessments unpaid after 15 days carry a $25 late charge and 18% interest.

With the association's approval, under § 19 (OR 23647/1684, pp. 16–17):

• at least 3 months and at most 12, unless the Board approves otherwise;
• no more than once in any 12 months, and no sublease without approval;
• a decision within 30 days of the notice and information, or the lease is deemed approved;
• no approval while the owner is delinquent, and a deposit of up to $2,500 if the Board asks;
• a lease made without applying first is "wholly null and void".

Since 2009 the association may also collect an owner's past-due assessments from the tenant, instead of rent (§ 19.2, p. 18). A rental amendment to a homeowners' association's documents enacted after 1 July 2021 generally binds only owners who take title after it, or who consent to it. Limits on leases shorter than six months, or on leasing more than three times a calendar year, bind everyone (Fla. Stat. § 720.306(1)(h)). Cedar Glen's limits were recorded by 2010, before that cutoff, so they bind every owner. The master's leasing rules apply on top.

• How the 2009 covenants were recorded. The certificate of 21 April 2009 does not contain the financing cap, the entity bar or the buyer screening (OR 23188/1941). They first appear in a "Corrected Certificate" recorded on 1 May 2009 (OR 23206/26, p. 2). It recites a members' meeting of 30 January 2009, but its certification cites written consent under § 617.0701(4). We raise both points with underwriting.
• A compilation, not a new vote. The 2010 "Certificate of Amended and Restated Declaration" says the association wanted "one complete set of documents containing all amendments" (OR 23647/1684, p. 1). We have not traced every compiled section, including § 21 and the leasing rules, to the amendment that adopted it.
• The lien. The compiled text subordinates the lien to an institutional first mortgage recorded before a claim of lien (Art. IV § 9, p. 9). Chapter 720 now governs a lender's liability.
• Construction deposits. Since 2014 an owner starting approved work, or placing a dumpster, deposits $3,000 or another sum the Architectural Control Board sets (Art. VI § 12, OR 26849/633, p. 3).
• Names. The 2014 amendment says "Cedar Glen at Boca West"; the plat and declaration say "in", so we search the index under both.