Buying a condominium in Florida means buying into a community governed by a homeowners association (HOA) or condominium association. After the Surfside building collapse in 2021, Florida enacted sweeping reforms requiring structural inspections and reserve funding — but these changes also mean potential special assessments that can run into tens of thousands of dollars per unit. The purchase contract and HOA disclosure documents are your window into the financial health of the building and the association. Missing red flags here can be far more costly than any issue with the unit itself.
What is a HOA Disclosures?
A Florida condo purchase involves both a standard real estate purchase contract and condominium association documents. Under Florida Statute § 718.503, the seller must provide the buyer with a copy of the declaration of condominium, articles of incorporation, bylaws, rules, most recent financial statements, and the 'Frequently Asked Questions and Answers' document. The buyer has a 3-day right of rescission (15 days for new condos from a developer) after receiving these documents. The association documents reveal the financial obligations, reserve status, and governance structure that will affect your ownership.
Red flags to watch for
Under SB 4-D (2022) and SB 154 (2023), associations must conduct Structural Integrity Reserve Studies (SIRS) and can no longer waive reserves for structural components. Underfunded reserves almost certainly mean a special assessment is coming.
A special assessment can add $10,000-$100,000+ per unit for major repairs. Check the meeting minutes for any discussion of upcoming assessments — sellers don't always disclose these proactively.
Buildings 3+ stories and 25+ years old must complete milestone inspections by December 31, 2024 (or 2025 for 30+ year buildings). If the building hasn't complied, it faces potential penalties and unknown structural risks.
Buildings with high investor ownership often struggle with governance, deferred maintenance, and lending restrictions. Many mortgage lenders require at least 50% owner-occupancy.
Check the disclosure documents for current litigation. Construction defect lawsuits, slip-and-fall claims, and disputes with developers can drain reserves and increase insurance costs.
Florida's condo insurance market is volatile. Associations facing 50-200% premium increases pass those costs directly to unit owners. Check whether the association has adequate coverage and what the trend looks like.
Your legal rights
Under Florida Statute § 718.503, buyers of resale condos have a 3-day right of rescission after receiving all required documents. New condo buyers from developers have 15 days (§ 718.503(1)). The Condominium Act (Chapter 718, Florida Statutes) requires associations to maintain certain records available for owner inspection. SB 4-D (2022) and HB 1021 (2023) mandate Structural Integrity Reserve Studies and milestone inspections for buildings 3+ stories, with full reserve funding required by December 31, 2025. The Florida DBPR Division of Condominiums handles complaints about association compliance.
Questions to ask before you sign
- 1Has the building completed its milestone inspection and Structural Integrity Reserve Study?
- 2What is the current reserve fund balance, and what percentage is it funded?
- 3Are there any pending or anticipated special assessments?
- 4What has been the trend in HOA fees over the past five years?
- 5Is there any pending litigation involving the association?
- 6What percentage of units are owner-occupied versus investor-owned?
- 7What is the current property insurance cost, and how has it changed recently?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.