Gelfand & Arpe, P. A.


April 2, 1992

MEMORANDUM TO CLIENTS

A.   PALM BEACH TOWING ORDINANCE

In response to complaints that cars are towed without cause and that car owners are "ripped off" by tow truck operators, the Palm Beach County Commission enacted an ordinance regulating towing of cars located in Palm Beach County. Similar ordinances either have been or are under consideration in neighboring counties. Failure to comply with the ordinance may result in the levy of a fine. The ordinance supplements, rather than supersedes §715.07 Fla. Stat. (1991) which identifies towing sign placement requirements.

The towing ordinance substantially impacts upon individuals', businesses', and associations' efforts to tow vehicles. A business or an association utilizing a tow operator's services must have a written agreement with the tow truck operator. The operator must be licensed by the county. Written agreements must be renewed at least once every twelve months.

A tow authorization must strictly comply with the ordinance. If an association wants to tow a vehicle parked on common elements, area, or property, then an association agent must provide express written authorization to the towing operator. A business must provide the same notice. The person authorizing the tow must confirm the tow operator's county tow license number. Towing cannot be pre-authorized.

Before towing, a business or an association must conspicuously post "Tow Away Zone" signs in the manner required by State law. Included in the law are requirements that the signs must list the name and current telephone number of the tow person. Additionally, for associations and others who have a written agreement with a tow operator, the signs must state the name of the tow operator. Most tow operators provide valid signs for customers with written agreements.

Notice of an impending tow should be given to a vehicle owner, or person controlling the vehicle (such as a driver). Unless tow signs have been prominently posted, or the vehicle has been parked without authorization for more than forty-eight hours, or the parking location is at a single family home, then written notice of the impending tow must be personally given to the vehicle owner or person in control of the vehicle. An occupied vehicle cannot be towed, even if improperly parked.

For the unwary whose vehicle is towed, the ordinance provides numerous rights. Tow operators are required to post their fee schedule and hours of operation, and their offices must be safe, secure and protected from harmful elements. Operators must return a vehicle within a certain time period.

B.   1992 CONDOMINIUM/HOMEOWNER/COOPERATIVE ASSOCIATION AMENDMENTS

On Friday, March 13, 1992, the Florida Legislature adopted an act intended to modify the 1991 Amendments to the Condominium Act effective for most matters as of April 1, 1992. The act includes sections applying more of the 1991 amendments to cooperative associations. Finally, effective October 1, 1992, the act provides regulations for post-turnover homeowner associations. As of press time for this memorandum, the Governor had not signed the bill, and the final version with all amendments had not been distributed.

When the final and complete version of the 1992 Amendments is published and the Governor signs the Act, we will prepare a special notice for our clients. In the interim, we want to give our clients an advance preview of what is expected to be forthcoming. The following is a summary of the proposed amendments which the firm believes will immediately affect condominium associations:

First and most importantly, most of the 1991 amendments were not changed or altered. Some of the more burdensome provisions still remain, such as the requirements that condominium associations have question/answer sheets and copies of documents available for purchasers. Failure to have the papers available and up-to-date may make an association liable for any mis-communications or loss of a sale. If any condominium association has not had their documents reviewed and the statutory question and answer sheet prepared, the association should do so without delay.

Some of the more outrageous provisions of last year's amendments have been alleviated. Bonding requirements may be reduced utilizing a formula based upon the size of a condominium association's budget. The right to inspect records has been limited to exclude leasing and resale documents as well as attorney-client privilege items.

The convoluted election procedures have been modified. The procedures are not required for condominiums of twenty-five units or less. If there are not enough nominees for a contested election, then an election need not occur; however, if there is a contested election, at least twenty percent of the owners must cast ballots for the election to be effective. However, a condominium association board of directors must meet within five days after the open nomination deadline to receive additional nominations. Also, directors may cast secret ballots in elections for officers.

Director liability has been revised. A definition of what is considered improper conduct is added. Directors can also consider at their meetings issues not properly noticed, if a majority of the directors plus one agrees to hear the issue, and the decision is confirmed at the next meeting.

The handling of documents has been changed. Condominium associations of 100 units or less are able to opt out of the bidding requirements. Also, contracts of less than five percent of a condominium association's budget do not have to be set out to bid. If an owner requests access to official records, then the records must be provided within five days of a written request. If an owner makes an inquiry to a director, then the Association must respond to the request within thirty days and indicate before responding, whether the Division of Land Sales or the association's attorney was consulted.

If you are not a firm client and you desire a copy of the anticipated summary of the amendments, please call our offices. If you are a homeowners association client, the summary of the homeowner's regulations effective in October should be distributed by the firm in June.

This information is provided only for public information purposes and is provided without obligation or fee. It is distributed to all of the firm's clients to provide a general notice of recent changes in the law. This information is not to be considered as legal advice. The changes in the law have not been reviewed by any courts and may be subject to challenge. Before taking any action you are urged to consult with counsel to ensure that your legal rights are being protected.