Florida Community Association Manager Practice Exam

What is the maximum amount for an Estoppel Fee if the unit is delinquent to the association?

1. 100

2. 150

3. 200

4. 250

The correct answer is: 150

The maximum amount for an Estoppel Fee when a unit is delinquent to the association is set at $150. This fee is regulated under Florida law, specifically in statutes related to community associations. The Estoppel Fee is charged by the association to provide documentation confirming the status of assessments owed by the unit owner. This fee is important for both the association and the potential buyer, as it clarifies any outstanding financial obligations attached to the property. The rationale behind the cap on the Estoppel Fee is to ensure that it remains a reasonable expense as part of the transaction process, particularly when a unit owner is in delinquent status. Such limitations help maintain transparency and fairness within community associations, balancing the financial interests of the association with the rights of unit owners and prospective purchasers. Understanding this fee and its regulations is crucial for community association managers as they navigate financial matters and communicate with both current residents and new buyers.