Tara Woods SPE, LLC v. Cashin

116 So. 3d 492, 2013 WL 2278011, 2013 Fla. App. LEXIS 8358
CourtDistrict Court of Appeal of Florida
DecidedMay 24, 2013
DocketNo. 2D12-3854
StatusPublished
Cited by2 cases

This text of 116 So. 3d 492 (Tara Woods SPE, LLC v. Cashin) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tara Woods SPE, LLC v. Cashin, 116 So. 3d 492, 2013 WL 2278011, 2013 Fla. App. LEXIS 8358 (Fla. Ct. App. 2013).

Opinion

BLACK, Judge.

Tara Woods SPE, LLC, appeals the final judgment and supplemental final judgment entered in favor of Louella Cashin. Collectively, the judgments interpret provisions of Florida’s Mobile Home Act, chapter 723, Florida Statutes (2007), and permit Ms. Cashin to rescind her lease contract. Presented with an issue of first impression, we must determine whether Tara Woods SPE, LLC (Tara Woods), a mobile home park owner, complied with the disclosure requirements of the Mobile Home Act (Act) as it relates to resale purchasers. Ms. Cashin persuaded the circuit court that the park owner did not comply with the Act; Tara Woods contends that the circuit court erroneously concluded that the park owner did not do enough to comply with the Act and further contends that Ms. Cashin waived certain rights. As we will explain in detail, we agree with Tara Woods’ arguments and therefore reverse the judgments on appeal.

I. Background

In August 2007 Ms. Cashin purchased a mobile home in Tara Woods Mobile Home Park. Tara Woods owns the park, which is regulated by the Act. Ms. Cashin’s mobile home was a resale; she purchased the home from the trustee of a deceased resident’s trust (Seller).

A. Documents

On August 8, 2007, Ms. Cashin executed a Rental Assumption Agreement acknowledging and agreeing to assume the remaining term of the rental agreement between Tara Woods and the Seller. In addition, she executed a Rental Agreement to be effective for the period assumed— September 1, 2007 through December 31, 2007. The Rental Agreement included a rent increase provision identical to the rent increase provision in the Seller’s original rental agreement, to wit: “The LANDLORD may raise the amount of base rent and special use fees and other charges annually effective the 1st day of January,_Increases in the base rent and other fees and charges will be determined in the manner disclosed in the Prospectus.”

On the same day, Ms. Cashin signed an acknowledgment stating that she received a copy of Tara Woods’ Prospectus and a Lifetime Lease. The Prospectus provided to Ms. Cashin was approved by the Department of Business and Professional Regulation (Department) in 1994, pursuant to the Act. See §§ 723.006(8), .011(1); Vill. Park Mobile Home Ass’n., Inc. v. Fla. Dep’t. of Bus. Reg., 506 So.2d 426, 426 (Fla. 1st DCA 1987). The Lifetime Lease, as an attachment to the Prospectus, had been approved by the Department on March 28, 2006. See §§ 723.011(2), .012(14)(d).

The first page of the Prospectus contains four paragraphs, each of which is typed in capital letters and required under the Act. See § 723.012(l)(b). As relevant to this appeal, paragraphs one, two, and four provide:

THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE DOCU[495]*495MENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND ALL SALES MATERIALS.
[[Image here]]
UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE, THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF FIFTEEN (15) DAYS.

Section VIII, paragraph D of the Prospectus, under the heading “Increases in Lot Rental Amount,” addresses factors affecting rent increases:

Factors which may affect the level of increases in the lot rental amount or user fees are as follows:
Consumer Price Index (CPI): [Tara Woods] will consider increases in the level of CPI for the twelve-month (12-mo.) period immediately preceding the notice of increase. Rent and other charges may be increased by a percentage equal to the increase in the level of CPI but such increase will not exceed ten percent (10%) of the level of rent or other charges in the year prior to the effective date of the increase.

Paragraph E of the Prospectus, under the same section and heading, addresses “Additional Considerations” and provides, in relevant part:

Tenants assuming the remaining portion of a rental agreement as prescribed by § 723.059(3), F.S., are hereby notified that upon the expiration of the assumed rental agreement, the Park Owner expressly reserves the right to increase lot rental amount in an amount deemed appropriate by the Park Owner with such increase being imposed in the manner disclosed in the Prospectus delivered to the initial recipient. The increase must be disclosed and agreed to by the purchaser in writing prior to occupancy.

Also on August 8, 2007, Ms. Cashin signed an acknowledgement stating that Tara Woods provided her with an approved Prospectus and that she had not been supplied with the original prospectus delivered to the Seller. That document reads:

The owner of the home I purchased on Lot 143 did not supply me (we) or the Sales Office with the original Prospectus which was delivered to the previous owner(s), per the terms specified in Chapter 723, Florida Statutes, Department of Business Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes.
Tara Woods Community Management furnished me (us) with a current approved Prospectus, which is now being delivered to new residents who purchase new homes. I(we) were informed that it may or may not be the same form as the original Prospectus delivered to the previous owner(s). I(we) the buyer(s) Louella Cashin accept the current Prospectus given to me (us) at the time of the signing of the Lease Agreement to be used as a guide for information purposes.

The final document signed by Ms. Cash-in is her lot rental agreement (Lifetime Lease). Although the date Ms. Cashin signed the Lifetime Lease is unclear — two executed Lifetime Leases were introduced into evidence below — it is clear Ms. Cashin signed a Lifetime Lease.1 Section C, [496]*496paragraph 3(C), of the Lifetime Lease addresses factors affecting increases in rent and reads:

Effective the first day of every calendar year the base rent shall be adjusted by the percentage increase in the CPI; however, if the percentage increase in the CPI is less than three percent for any year, the base rent shall be increased by three percent. Alternatively, at the sole discretion of Community Owner, effective the first day of each calendar year, the base rent shall be adjusted to the market rent, but in no year by more than the percentage increase in the CPI plus two percent.

On the last page of the Lifetime Lease, section V, Homeowner Acknowledgement of Understanding, provides: “Homeowner hereby acknowledges that [s]he has read the foregoing Lot Rental Agreement and that prior to executing this Lot Rental Agreement [s]he has had a reasonable opportunity to read and review it....” Finally, immediately preceding the signature lines on the last page of the lease, and typed in bolded, all capital letters appears the following disclosure:

YOU DO NOT HAVE TO ACCEPT THIS RENTAL AGREEMENT.
THIS RENTAL AGREEMENT CONTAINS PROVISIONS WHICH ARE DIFFERENT FROM THE PROSPECTUS DISCLOSURE.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bank of America v. The Enclave at Richmond Place Condominium Association, Inc.
173 So. 3d 1095 (District Court of Appeal of Florida, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
116 So. 3d 492, 2013 WL 2278011, 2013 Fla. App. LEXIS 8358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tara-woods-spe-llc-v-cashin-fladistctapp-2013.