Valencia Estates, Fisher Island: HOA rules, fees and closing points

• The association's estoppel, in recordable form. "No Owner may sell or convey his interest in a Lot unless all sums due the Association shall be paid in full and an estoppel certificate in recordable form to such effect shall have been received by the Owner." The association delivers it "within ten (10) days of a written request", for "a reasonable sum to cover the costs of examining records and preparing the certificate" (§ 8.10). If Chapter 720 applies, its estoppel statute sets its own delivery time and fee limits (Fla. Stat. § 720.30851; see HOA approvals and estoppels). FICA's estoppel is ordered separately (master page).
• The right of first refusal. "No Owner, other than the Developer, may sell and/or lease a Home except by complying with" Article 8 (Art. 8). Give the notice early, and record the association's certificate that the right was satisfied or waived (next section).
• No fee on a resale is set: no transfer fee or capital contribution. The certificate on the right of first refusal carries no fee "in excess of the charges reasonably required" (§ 8.5).
• Who may live in the home. Only the owners and their "Members' Permittees" may occupy it: an individual owner; an officer, director, stockholder or employee of a corporate owner; a partner in or employee of a partnership owner; a fiduciary or beneficiary of an ownership in trust; or occupants named in an approved lease — each with their family (§ 7.19). An entity buyer should know who will live there before closing.
• The architectural record. Ask whether the Architectural Control Board's approvals for the existing home and improvements are on file (§ 7.11), and for the current Design Guidelines, which were not recorded.
• Assessments start with the home. "No Lot shall be subject to assessment until such time as a Home has been constructed thereon and received a certificate of occupancy" (§ 6.6). The fiscal year runs from 1 October to 30 September.

Yes, on sales and on leases (§ 8.2):

1. An owner who receives a bona fide offer to buy or lease the home and intends to accept it gives the Board notice by registered mail, with the offeror's name and address, the terms, and any other information the Board reasonably asks for. The notice is itself an offer to sell or lease the home to the association on the same terms.
2. "Not later than thirty (30) days after receipt of such notice, together with such further information as may have been requested", the association or its designee may elect, by certified mail, to buy or lease on the same terms. Unlike the condominium declarations of 1986 to 1992 on the island, this one gives no shorter period elsewhere: the owner is free only if the association fails to accept, or for a lease to reject, "within thirty (30) days after receipt of notice and all additional information requested".
3. If the association elects to buy, title closes at its attorneys' office within forty-five (45) days after its notice of election. The owner conveys by statutory warranty deed, pays the documentary stamps, and delivers an abstract or title binder, and later title insurance, at least thirty (30) days before closing.
4. If the association does not act, the owner may accept the outside offer within sixty (60) days. A sale on other terms, or later, needs a new notice.
5. The association may exercise the right only with the prior approval of a majority of the Homes present at a meeting with a quorum (§ 8.3).
6. A sale or lease that does not comply "shall be voidable at any time at the election of the Association" (§ 8.2).
7. An officer's executed and acknowledged certificate that the right was satisfied or waived "shall be conclusive with respect to all persons who rely on such certificate in good faith" (§ 8.5). Record it with the deed.

The right does not apply to a lease, sale or conveyance to the owner's spouse, adult children, parents, parents-in-law or adult siblings, or to a trustee, corporation or other entity wholly theirs; to or by the Developer or the association; on a foreclosure sale or deed in lieu; or to a Mortgage Lender taking title by foreclosure or deed in lieu (§ 8.7). Gifts, devises and inheritance are free of it, though the new owner is bound by Article 8 (§ 8.8), and mortgages are unrestricted (§ 8.9).

Yes, with the association's approval (§ 8.1):

• only the whole lot and home, under a written lease that lets the association terminate it if the tenant defaults;
• "Leasing of Lots and Homes shall also be subject to the prior written approval of the Association, which approval shall not be unreasonably withheld";
• "No Lease shall be approved for a term less than thirty (30) days and no Home may be leased more than one time in any calendar year", counted by the date each lease commences;
• the association may require "$1,000.00" in escrow against damage by tenants, returned, less an administrative charge "not to exceed $50.00", within ninety (90) days after the tenants move out;
• the lease is also offered to the association first, under the right of first refusal (§ 8.2).

Anyone "occupying a Home for more than one (1) month shall not be deemed a guest but, rather, shall be deemed a lessee … (regardless of whether a lease exists or rent is paid)" (§ 7.19). Because approval is required, FICA may refuse the tenant the ferry if it was not obtained (master page). No leasing amendment is in our set. If Chapter 720 applies, one adopted after 1 July 2021 would be read against Fla. Stat. § 720.306(1)(h), so for an investor buyer the records need searching forward from 2003.

• Recorded two years after it was made. The declaration is dated as of 1 March 2001 but was recorded on 6 February 2003, and the association's articles were filed after its date, on 8 March 2001. A lot deed recorded before 6 February 2003 would pre-date the recorded declaration; check the vesting deed's date.
• No joinders. The recorded declaration has no joinder by the association or by any mortgagee. Nothing we hold shows that this matters; we note it for underwriting.
• Exhibits that were not recorded. The declaration cites Exhibit "F", the Design Guidelines that architectural approvals must follow (§ 7.11), and Exhibit "G", the percentages for casualty assessments (§ 11.1(b)). Neither is among the 53 recorded pages.
• The lien. Assessments are "a charge on the land and shall be a continuing lien upon the Lot" (§ 6.1); unpaid installments "thereupon become a continuing lien on the Lot", and the personal obligation "shall pass to his successors in title" (§ 6.8). Anyone who acquires a lot with delinquent assessments "shall not be entitled to the occupancy of such Lot or the enjoyment of the Common Properties until such time as all unpaid and delinquent assessments due and owing from the selling Owner have been fully paid" (§ 6.8), so clear the arrears at closing. Late installments carry a late charge, interest "at the highest lawful rate" and acceleration of up to 12 months (§ 6.8).
• Lenders. The lien is subordinate to "the lien of any first mortgage recorded prior to recordation by the Association of a claim of lien held by a Mortgage Lender", and a Mortgage Lender or foreclosure buyer takes title subject only to assessments "coming due after such foreclosure" (§ 6.9). How that sits with Fla. Stat. § 720.3085, if Chapter 720 applies, is a question for underwriting.
• Fines can become assessments. A fine may not exceed $100.00, or $100.00 a day for a continuing violation, "except that no such fine shall exceed $1,000.00 in the aggregate", after a committee hearing on at least 14 days' notice, and "Fines shall be treated as an assessment subject to the provisions for the collection of assessments" (§ 9.3). Ask the estoppel to show any fine.
• A first-refusal sale that skipped the notice is voidable by the association (§ 8.2). Look for the § 8.5 certificate in the chain of title for each earlier resale or lease.
• Amending the declaration. The Developer may amend alone "for so long as it or its affiliates holds title to any Lot"; otherwise an amendment needs "not less than 66-2/3% vote of the entire membership", and the Developer's consent while it owns a lot (§ 14.7). In a conflict, "the Master Covenants shall take precedence over this Declaration" (§ 14.9).
• Cited but not in our set: Exhibits "F" and "G", the plat of Lindisfarne on Fisher Island Section 10 (PB 157/64), the Fisher Island Club's Plan for the Offering of Memberships dated 1 June 1993 (§ 14.2), and anything recorded after 6 February 2003.