Agreements entered into by the association

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. Click through to the official source for statutory text.