MIAMI- On Tuesday, the governor of Florida, Charlie Crist,signed into law the Distressed Condominium Relief Act, which isdesigned to give assurance to bulk condominium buyers that theywon’t be liable for the flaws in a building they did not develop.Theoretically, as bulk buyers are spared this liability, they willbuy up more of the excess units built during the boom years. Thelaw will goes into effect on July 1, 2010.

Because the new law takes the element of liability off thetable, says Warren Weiser, chairman of Continental Real EstateCompanies in Coral Gables, bulk buyers will no longer have tobudget for possible litigation.

The new condominium law was written two years ago at thebeginning of the real estate crisis, at a time when there were fewbulk condominium purchases. But in the last couple of years, thenumber of these purchases has grown tremendously. According toCondo Vultures, LLC, a real estate brokerage and consulting firm inMiami, in the period from July 1, 2008 to April 30, 2010, therewere $976 Million worth of bulk condo sales in South Florida,most of which occurred in 2009, when there were $863 Million worthof these sales.