Q. I belong to a condominium association. Our documents still are full of developer language and we have various changes a majority of owners want to make. What is the process for presenting a request for amendment to the board? Can we just request the amendment be discussed at the next board meeting or is there a more formal process?
J.H., Fort Lauderdale
Amending your documents is a serious situation. Never attempt to modify your documents without legal guidance. In truth, the language of the developer makes your documents stronger, as it records the history of the beginning. You must read in your documents what is required to modify them. More than likely it can be found near the last page.
In addition, the attorney will advise the board on how to call a members’ meeting and how the members can vote on the issues. It is not a simple process. My guess is that the cost will exceed several thousand dollars to do it correctly. Do not forget that you will need to not only record the changes; you must provide each member a copy of the new documents or changes. The cost for printing and postage is part of the cost to modify your documents.
Q. We are in the process of hiring a 1099 individual contractor. We have insurance that I believe is used for volunteer work. Can this be extended to include him? I am sure if it can cover him, there may be an increase in our premium. Also, does he need a license and if so, what for? Is there anything else we should be considering?
J.R., Naples
This is a critical issue. All contractors must provide their own insurance that includes workers’ compensation and also names the association as an additional insured. If the contractor does not have proper insurance, then the association will assume liability that your insurance will not cover. Some contractors will have an exemption from the state, but that does not exempt the association.
I have many war stories of accidents to contractors who did not have insurance coverage and the association was forced to cover the loss. Before you enter into a contract, have your attorney review the paperwork. Also, have your insurance agent explain the coverage or lack of coverage you have for a contractor. In the package, the contractor must be qualified and have proper licenses.
The board has a fiduciary duty to the members to protect the assets of the association. Accepting a lower bid from a contractor who fails to provide proper insurance, proof of licenses or qualifications is not the proper action by the directors.
Q. Under FS 720.3085, I was wondering how an association can foreclose on an owner for unpaid dues if the owner has declared bankruptcy. A property owner can keep his primary residence if he declares bankruptcy in Florida, correct?
J.D., Naples
During the period of legal proceedings involving the bankruptcy, the association cannot enforce a foreclosure. It is critical that the association respond to the bankruptcy court by having the association attorney answer the notice. Once the bankruptcy has been finalized, the association may then proceed to foreclose if the delinquent amount has not been paid through the bankruptcy court. To avoid losing the right to foreclose or collect on the delinquent amount, the board must have good legal guidance. A bankruptcy may not necessarily eliminate the delinquent claim. But, if the board does not answer the notice, it may lose its rights to collect on the delinquent amount. The key is to have your attorney stay on top of the bankruptcy case.
