***CONDO OWNER ALERT***

Since 2004, Florida's Condominium Act has required unit owners to maintain hazard insurance on their units - separate and above the hazard insurance on the common areas paid for by the condo association. It became apparent after the 2004 hurricane season, though, that the law wasn't being enforced when individual condos ravaged by Hurricanes Charlie and Jeanne weren't repaired or rebuilt because the unit owners lacked insurance. HB 601 provides condo associations a way to enforce THESE insurance standards by requiring unit owners to provide proof of insurance every year. If a unit owner fails to provide a certificate of insurance, the association may purchase insurance on the owner's behalf and assess the unit owner for the cost of the insurance.

Unit Owner Insurance: This bill also provides that as to individual unit owner policies, effective January 1, 2009, such policies must: (1) contain a provision stating that the coverage is excess coverage; and (2) include special assessment coverage of not less than $2,000 per occurrence. Individual unit owner policies may not provide rights of subrogation against the association. All improvements or additions to the condominium property that benefit fewer than all of the unit owners shall be insured by the unit owners that benefit from such property, or may be insured by the association at the expense of the unit owners who have the use thereof. Condominium property consisting of free-standing buildings may be insured by the unit owners if the declaration so provides.

Well, what a difference a week makes...bank failures...institutional brokerages running around like chicken little...gov't bailing out these institutions to the tune of BILLIONS of dollars...hmmm, this sounds eerily familiar. A credo I have adopted in light of our current political situation is "those who do not know history are condemned to repeat it".

This subprime crisis and the resulting gov't rescue is is literally a page out of the 80's and early 90's...the debacle known as the S & L crisis. Here's a quick summary of what happened then (notice the parallels) courtesy of Wikipedia:

"The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts—which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse selection incentives compounded the system’s losses.
The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War II."

How is this going to play out...initial reports suggest the creation of a RTC-type entity to spin off the bad debt and assets, which will, in the end, cost US - the taxpayers!

This may affect our long-term real estate outlook - i am expecting some add'l stabilization sooner than what we are currently forecasting...stay tuned...it will only get more interesting.

Hurricane Ike may be hundreds of miles away, but local homebuyers have still been stung by it's effects - Insurance underwriting was shutdown yesterday at 11a and as of 845a Tuesday morning, Florida is still on a resticted underwriting status. See below:


"No application for new, or endorsement for increased coverage may be bound, written, or issued, or monies received, regardless of effective date, when a Tropical Storm or Hurricane Watch or Warning has been issued by the National Weather Service for any part of the State of Florida. "

We are under storm restrictions.

Storm Name Start of RestrictionDate and Time End of RestrictionDate and Time

Hurricane Ike 09/07/2008 11:00 AM EST

Hurricane Gustav 08/29/2008 5:00 PM EDT 09/01/2008 11:00 AM EDT

Tropical Storm Fay 08/17/2008 5:00 AM EDT 08/23/2008 11:00 PM EDT

For Tropical Storm Advisories and Information visit the National Hurricane Center.

FLORIDA'S LANDLORD/TENANT LAW

Questions concerning landlord/tenant rights are one of the top inquiries I receive. Most people living in leased apartments and other rental housing know there are laws dealing with landlord/tenant relationships, but they often don't find out the details until there is a problem.

The following landlord/tenant information is provided to answer many of the questions frequently asked regarding landlord/tenant rental relationships, according to Florida's Landlord/Tenant Law (Chapter 83, Part II).


BEFORE YOU RENT*

When searching for a rental dwelling, be careful when leaving a deposit to hold an apartment for a short period of time in order to shop around for other possible dwellings. If the property manager says the deposit will be returned whether you decide to rent the apartment or not, always get that verbal promise in writing.*

• Make sure you have reviewed your rights and obligations as a tenant and the rights and obligations of the landlord, according to Florida's Landlord/Tenant Law (Statute 83, Part II). Just google it.
• Although Florida law does not require a written lease, you should request a written lease that clearly states all the terms. Oral leases are subject to misunderstandings and are more difficult to enforce.*
• If there is no written lease, the span of your rental payment (weekly, monthly, etc.) determines the length of the agreement.*
• Before signing a rental agreement make sure you understand the terms of the contract. If you don't understand, don't sign the lease! There is NO required grace period for canceling leases, so if you sign, you are bound to the agreement.*
• Before signing a rental agreement always conduct a preliminary walk-through in the actual premises you intend to rent in order to identify any problems that should be fixed before you rent. Verbal promises made by the landlord to fix the identified problems should be included or attached as a written agreement to the lease and signed by the landlord.*
• A damage deposit (security deposit) is one of the most common requirements of landlords. At the time of your pre-rental walk-through with the landlord, you should make note of damaged items or areas, worn rugs, broken fixtures, etc., and give a copy to the landlord. Keep a copy for your files. This may eliminate or minimize disputes later. If you can't do the walk-through before signing the lease, complete one immediately after signing the lease.
• Know the difference between a Security Deposit and an Administrative Fee or Processing Fee. Florida Statute Chapter 83 provides for the return of security deposits whereas administrave fees and processing fees are not the same as deposits and are generally not refundable.

THE LANDLORD'S RESPONSIBILITIES*

Florida Statutes, Section 83.51, require a landlord to comply with the requirements of applicable building, housing and health codes. This means:

• 1. The roof must not leak.
• 2. The walls must be weather-tight and in good repair.
• 3. The stairs must be safe for normal use and maintained in good repair.
• 4. Windows and doors must be weather-tight, water-tight, rodent-proof and kept in sound working condition. Outside doors have to have proper locks.
• 5. Window panes cannot have cracks and holes. Outside windows must have screens.
• 6. Inside floors, walls, ceilings must be basically rodent-proof and kept in sound condition and good repair and should be safe.
• 7. The house or apartment must have hot water that is connected to the kitchen and bathroom sinks, tub or shower.
• 8. All houses or apartments must have a flushin toilet in good working condition.
• 9. When cooking and heating equipment are provided by the landlord, they must be safely installed and in good working order.
• 10. There must be adequate garbage disposal facilities or garbage storage containers.
• 11. Every habitable room must have at least two separate floor or wall electric outlets and, additionally, every kitchen, bedroom, bathroom and hallway must have a ceiling or wall-type fixture, or an outlet controlled by a wall switch near the entrance to the room.
• 12. All electrical systems must be in good repair and good working order.

IF THE LANDLORD DOES NOT COMPLY* If your landlord has failed to comply with the previous listed code responsibilities and has ignored your request to undo their unlawful action, contact the appropriate City housing office. * If your landlord fails to do what the law or lease requires, you may be able to withhold a portion of your monthly rent until the property is brought into compliance. You must give written notice to the landlord of your intention to withhold rent and give the landlord time to make repairs in accordance with the procedures as set forth in Florida Statute Chapter 83, Sec. 83.56 (1)(a) or (1)(b). You must allow at least seven days for repairs and your written notice must give detailed information on the items that need to be repaired.