The new law gives developers a possible new exit strategy for some existing condominiums with available inventory, says Dan Bachrach, a partner with Foley & Lardner’s Orlando office and a member of the Real Estate Practice and the Hospitality, Resort & Golf Industry Team. Bachrach explains that owners of units in a condominium project with available inventory may have the option of seeking a partial termination of the condominium documents as to certain units.

“Once the condominium is terminated in those units, the owner of the units could then create a separate timeshare condominium regime through a new set of condominium documents specifically applicable to only those units,” Bachrach tells GlobeSt.com. “In other words, a developer could terminate the condominium as to a group of units from the condominium with an 80% vote of the unit owners--as opposed to a 100% vote plus approval from all of the mortgage holders--then would be free to subject the units to a separate condominium regime, one that allows timeshare plans.”

Grant says the only drawback to the bill is that it is set to sunset in 2012. He and others are working to lobby for its extension and possibly even its permanent incorporation into Florida's Condominium Law. Grant believes doing so will help better protect Florida's cyclical real estate market.