TBO.com - TBO is Tampa Bay Online

Sales To Under-55 Buyers Allowed

ADVERTISEMENT

By RICHARD WHITE Tribune correspondent

The Tampa Tribune

Published: June 19, 2008

I am interested in obtaining information regarding the sale of units in an adult community, a 55-plus community.

We are aware of the 20 percent rule but are not sure whether we can refuse to sell to someone who wishes to buy but is younger than 55.

C.S.

St. Petersburg

The adult community act does not address ownership or sales to buyers younger than 55. It addresses residency of adults 55 or older.

The requirement is that one person who is 55 or older must reside in each home. The association must take a census every two years and have one person who lives in each home sign an affidavit stating their age is 55 or older.

In addition, that person must provide a copy of proof of age to be filed with the affidavit.

Also, the association must register with the Florida Department of Human Relations that it complies with the Federal Adult Act.

The 80 percent-20 percent rule can allow a surviving spouse or relative to occupy the home without having an occupant age 55. This would allow a person to have a younger spouse remain in the home if the older person dies.

Our association is made up of 17 villas and has more than $100,000 in reserves. We would like to know what long-term, high-yield investment vehicles would be available to us.

F.P.

Miami

You are obligated to protect the funds before looking for a return on the funds. The state will not tell you what to invest in but does say you must protect the funds. You have a fiduciary duty to the members for the principal amount, not the return on the funds.

Look to a bank or investment company that fully insures the funds. That may mean that you will need to split the funds and place them in two banks or with two investment brokers.

Do not buy gold coins, and do not buy high-risk mutual funds.

Richard White does not offer legal opinions; any other questions and comments concerning association operations can be sent to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115; or e-mail camquestion@cfl.rr.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT