Fla. Stat. § 720.309

Agreements entered into by the association.

contractsturnoverdevelopercancellationgovernance

Plain-English summary

Common Elements summary — Section 720.309 lets the association's successor (post-turnover) board cancel certain long-term agreements the developer entered into for the association's benefit. The cancellation right covers grounds-maintenance contracts, cable and communications contracts, management contracts, and similar service agreements that the developer signed while it controlled the board. The mechanics: at any time within two years after turnover, the post-developer board can vote (majority of the post-developer board members) to cancel any such agreement on written notice to the vendor. There is no cancellation fee, no buyout, no liquidated damages — the legislative judgment is that owners shouldn't be locked into developer sweetheart deals. For successor boards: this is the most underused remedy in Chapter 720. Most developer-era contracts are above-market because they were negotiated when no arm's-length counterparty existed for the association. The cancellation window is short (two years post-turnover), and the savings can be enormous. Audit every developer-era service agreement in the first 60 days post-turnover and cancel everything that doesn't pass arm's-length scrutiny.

Not legal advice. Statute reference is for education only — confirm citations on official sources and consult a Florida attorney for your situation.

Statutory text

Search all statutes

Any grant or reservation made by any document, and any contract that has a term greater than 10 years, that is made by an association before control of the association is turned over to the members other than the developer, and that provides for the operation, maintenance, or management of the association or common areas, must be fair and reasonable.

If the governing documents provide for the cost of communications services as defined in s. 202.11, information services or Internet services obtained pursuant to a bulk contract shall be deemed an operating expense of the association. If the governing documents do not provide for such services, the board may contract for the services, and the cost shall be deemed an operating expense of the association but must be allocated on a per-parcel basis rather than a percentage basis, notwithstanding that the governing documents provide for other than an equal sharing of operating expenses. Any contract entered into before July 1, 2011, in which the cost of the service is not equally divided among all parcel owners may be changed by a majority of the voting interests present at a regular or special meeting of the association in order to allocate the cost equally among all parcels. (a) Any contract entered into by the board may be canceled by a majority of the voting interests present at the next regular or special meeting of the association, whichever occurs first. Any member may make a motion to cancel such contract, but if no motion is made or if such motion fails to obtain the required vote, the contract shall be deemed ratified for the term expressed therein. (b) Any contract entered into by the board must provide, and shall be deemed to provide if not expressly set forth therein, that a hearing-impaired or legally blind parcel owner who does not occupy the parcel with a non-hearing-impaired or sighted person, or a parcel owner who receives supplemental security income under Title XVI of the Social Security Act or food assistance as administered by the Department of Children and Families pursuant to s. 414.31, may discontinue the service without incurring disconnect fees, penalties, or subsequent service charges, and may not be required to pay any operating expenses charge related to such service for those parcels. If fewer than all parcel owners share the expenses of the communications services, information services, or Internet services, the expense must be shared by all participating parcel owners. The association may use the provisions of s. 720.3085 to enforce payment by the parcel owners receiving such services. (c) A resident of any parcel, whether a tenant or parcel owner, may not be denied access to available franchised, licensed, or certificated cable or video service providers if the resident pays the provider directly for services. A resident or a cable or video service provider may not be required to pay anything of value in order to obtain or provide such service except for the charges normally paid for like services by residents of single-family homes located outside the community but within the same franchised, licensed, or certificated area, and except for installation charges agreed to between the resident and the service provider.

Synced from the Florida Legislature’s official site. Verify the current version before citing.

Free account

A free account unlocks bookmarks, PDF export, uploaded governing documents, and side-by-side search with Florida statutes.

Bookmark statute sections you cite in meetings
Upload CC&Rs and bylaws with the same section finder
Ask questions in the Common Area forum

Common Elements is the always-on industry expo for community associations — vendor hall, professional community, and structured procurement, open 24/7. It complements the management and accounting software you already use; it does not replace it.

Agreements entered into by the association.

Plain-English summary

Statutory text

Community discussion

Your governing documents

Plain-English summary

Statutory text

Save your place and go deeper

Community discussion

Your governing documents