Dispute Resolution
The following information is intended to address basic and simple questions or concerns you may have about the laws governing dispute resolution for Homeowners’ Associations, Chapter 720, Florida Statutes. In no way should the following information be relied upon as or substituted for legal advice.
Q. Is mediation for any homeowners’ disputes still available through the Division?
A. No. The Legislature recently amended Section 720.311, Florida Statutes, which effectively ended the Division’s mandatory HOA mediation program and replaced it with a private mediation program. The new law, which took effect on July 1, 2007, now provides that parties to homeowners’ disputes may use private mediators to assist them in resolving their issues.
Q. When is arbitration required?
A. Arbitration through the Division program is required for all recall and
elections disputes, prior to filing a lawsuit.
Q. What does it cost?
A. There is a $200 filing fee. If you lose you may have to pay all attorneys fees and administrative costs. Typically costs range from $2,000 to $10,000.
Q. Do I need an attorney in order to file for arbitration?
A. You can be represented by an attorney, represent yourself and/or be represented by a qualified representative.
Q. What if my issue, dispute, or complaint does not fall under any of the above?
A. If your issue, dispute, or complaint does not deal with any of the above listed disputes authorized to be resolved through the Division’s arbitration program, then the Division does not have legal jurisdiction to hear your dispute.
Q. What if I want to file a complaint against my homeowners’ association?
A. The Division’s only legal authority to assist homeowners and homeowners’ associations with their disputes rests solely within the arbitration program created by Chapter 720, Florida Statutes, as discussed above. If your complaint cannot be addressed through arbitration, the Division will make every effort to direct you to the proper agency.
Q. What is the difference between mediation and an arbitration proceeding?
A. Mediation and arbitration both provide for alternative means of resolving a dispute without going to court, but they are different. Mediation is a non-adversarial proceeding and arbitration is considered adversarial. In a successful mediation, there are no winners or losers, the parties collectively come to a settlement agreement that is facilitated by a neutral third-party called a mediator.
In arbitration there are a petitioner and a respondent in each case, both presenting their cases before a neutral third-party called an arbitrator. An arbitrator is the fact finder or judge in an arbitration proceeding. Arbitration is conducted very similar to a trial, including the giving of opening and closing statements, the presenting of evidence, and sworn witness testimony. Unlike mediation, it is the arbitrator, rather than the parties, who makes the final decision in an arbitration proceeding, which is then reduced to writing in a Final Order and forwarded to both parties.
Q. Do I need an attorney in order to arbitrate my dispute with the Division?
A. It is always strongly recommended that a person seek legal counsel whenever an issue of law could affect an individual’s rights, or when a person is considering taking legal action against another. However, parties to arbitration can choose to represent themselves or have a qualified representative present their case rather than an attorney.
Q. Where do I find the necessary arbitration forms that I would need?
A. Forms are online at http://tinyurl.com/ycvnhca.
Q. How much does it cost to file a petition for arbitration hearing?
A. The filing fee is $200 per petition and must accompany your petition.
Please consult with your association’s attorney to discuss the pros and cons of these methods to resolve association/owner disputes. For further information on this subject you may go online to the Division of Florida Condominiums, Timeshares, and Mobile Homes http://tinyurl.com/yc5blh7
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