Bill Summary: CS for CS for CS for SB 840

• Creates the "Distressed Condominium Relief Act" (Part VII of Chapter 718) to address struggling condominium projects by allowing bulk assignees and bulk buyers to acquire unsold inventory with limited developer liabilities.

• Defines "bulk assignee" (acquires more than 7 parcels with developer rights assignment) and "bulk buyer" (acquires more than 7 parcels without developer rights), with bulk assignees assuming most developer duties except warranties, converter reserves, and pre-existing audit obligations.

• Limits bulk assignee/buyer classification to parcels acquired before July 1, 2012, and restricts bulk assignees to one per condominium while allowing multiple bulk buyers; requires transfer of board control to unit owners following the same procedures as for developers.

• Requires bulk assignees and bulk buyers to file updated prospectuses, financial information, and disclosure statements with the Division of Florida Condominiums, Timeshares, and Mobile Homes before offering units for sale or lease exceeding 5 years, and prohibits certain reserve-related actions without non-developer unit owner approval.

• Expands the Division's jurisdiction to include bulk assignees and bulk buyers during periods of their board control; original developers remain liable for all duties and violations despite assignment of rights to bulk assignees or bulk buyers.