Legal News You Can Use: 2025 - 2026 Community Association Legislative Update

NEW STATUTORY AMENDMENTS

Property Manager Requirements (Sections 468.432, 468.4334, 468.4335 and 718.111 of the Florida Statutes) Community association managers (CAMs) and community association management firms (CAM Firms) are licensed and regulated by the Florida Statutes and overseen by the Department of Business and Professional Regulation (DBPR). The Florida Statutes establish the professional standards and disciplinary procedures that govern the conduct of CAMs and CAM Firms, with the goal of promoting accountability and ensuring that high standards are upheld in all management relationships. This year’s legislative changes modify the following provisions affecting CAMs and CAM Firms:

requirements or SIRS requirements, the CAM or the CAM Firm must comply with those matters as directed by the association’s board of directors. ▪ Note – Previous law only referenced milestone inspection requirements in this context. It has now been expanded to include the SIRS component as well. » A CAM or a CAM Firm may not knowingly perform any act directed by an association if such an act violates any state or federal law. Second, the new laws introduce new requirements to address “conflicts of interest” involving CAMs and CAM Firms: » If a CAM or a CAM Firm (including directors, officers, and persons with a financial interest in a CAM Firm), or a relative of such persons, proposes to enter into a contract or other transaction with an association for services other than CAM services, then that relationship must be disclosed to the association’s board of directors. » If a CAM or a CAM Firm (including directors, officers, and persons with a financial interest in a CAM Firm), or a relative of such persons, holds an interest in or receives compensation from a person or entity that conducts business with the association, proposes to conduct business with the association, or is recommended to the association, then that relationship must be disclosed to the association’s board of directors.

First, the new laws impose specific obligations on associations and CAMs (or CAM Firms, as applicable) when entering into, or continuing under, a management contract: » The contract must include a statement, which is specifically prescribed by statute, stating that the CAM will abide by all professional standards and record keeping requirements imposed pursuant to applicable statutes. The statement must be written in at least 12-point type. » The contract may not waive or limit the professional practice standards required by CAMs and CAM Firms under the Florida Statutes. » If an association contracts with a CAM or a CAM Firm, the CAM or CAM Firm must possess all applicable licenses required by the DBPR. » All board members or officers of an association that contracts with a CAM or a CAM Firm have a duty to ensure that the CAM or CAM Firm is properly licensed before entering into a contract. ▪ Note – This represents an important new obligation placed on board members and officers. » If a CAM or CAM Firm has their license suspended or revoked during the term of a contract with the association, the association may terminate the contract upon delivery of a written notice to the CAM or CAM Firm, effective on the date the CAM became unlicensed. » If a CAM or a CAM Firm has a contract with an association that is subject to milestone inspection

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