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MRTA, Its On The Agenda

On Behalf of | Apr 16, 2024 | Condominium & Community Association Law

What is MRTA you are asking? It is the Marketable Record Title Act. What does that mean? It is a law that was intended to make it easier to insure title and to extinguish impediments to title that are over thirty years old. It is supposed to make things easier. It has had the unintended consequence of making HOA governing documents that are over thirty years old essentially dissolve if action is not taken to preserve them before the thirty-year mark. If you do not take proper preservation action, you have to undertake a more time consuming and costly revitalization process.

Several years ago, Florida Statute § 720.303(2)(e) was enacted to require that, “At the first board meeting, excluding the organizational meeting, which follows the annual meeting of the members, the board shall consider the desirability of filing notices to preserve the covenants or restrictions affecting the community or association from extinguishment under the Marketable Record Title Act.” I do not think a lot of HOAs are doing this. My commonsense answer and advice is to add a boiler plate agenda item on all board meeting agendas so that you do not screw this up. It merits discussion at every Board meeting so that the thirty-year mark does not sneak up on you. At a minimum, you are required to have it on the agenda for the first board meeting after the organizational meeting.