Buying a condominium in Florida involves unique considerations that don't apply to single-family homes. Florida's condominium law — Chapter 718 of the Florida Statutes — provides significant consumer protections, but buyers must know how to use them.
Florida Condo Law: Chapter 718
Florida Statute Chapter 718 (the Condominium Act) governs all aspects of condominium ownership in Florida, including buyer rights, association operations, financial reporting, and the disclosure package sellers must provide.
The 3-Day Right of Rescission
One of the most important protections for Florida condo buyers: if a seller has not provided the required condo documents before contract execution, the buyer has 3 days (72 hours) after receipt of the documents to rescind the contract without penalty and receive a full deposit refund. This right cannot be waived.
The condo disclosure package typically includes: the declaration of condominium, bylaws, rules and regulations, current budget, most recent year-end financial statements, frequently asked questions and answers (FAQ) document, and the certificate of rental restrictions (if any).
New Florida Law: Structural Integrity Reserve Study (SIRS)
Following the tragic 2021 Champlain Towers South collapse in Surfside, Florida enacted SB 4D (2022), which significantly changed reserve funding requirements for condominium associations with buildings 3 stories or more.
Key provisions affecting buyers:
- Condos must conduct a Structural Integrity Reserve Study (SIRS) by milestone dates
- Condos may no longer waive reserves for structural components
- Milestone inspections are required for buildings 30 years old (or 25 years for buildings within 3 miles of the coast)
- Buildings that fail milestone inspections must address the issues
This has significant implications: many older condo associations are now required to dramatically increase monthly fees and/or levy special assessments to fund reserves. Before buying any older Florida condo, request the SIRS and any recent milestone inspection reports.
Key Documents to Review
- Structural Integrity Reserve Study (SIRS) — required for buildings 3 stories+; shows structural reserve funding adequacy
- Milestone Inspection Report — Phase 1 and Phase 2 (if applicable) inspection results
- Budget and reserve fund balance — compare reserves to SIRS recommendations
- Meeting minutes (12–24 months) — look for discussion of structural issues, special assessments, litigation
- Insurance certificates — the association's master policy details; confirm what it covers
- Pending special assessments — significant for newer buyers
- Rental restrictions — many Florida condos have minimum lease terms (often 90 days or 6 months)
Condo Insurance: Master Policy vs. Unit Owner Policy
Florida condos typically have two types of association insurance policies:
- "Bare Walls" (All-In) policy: Covers original fixtures and finishes within units — your personal HO-6 policy covers personal property and improvements
- "All-In" policy: Covers original finishes and fixtures, so your HO-6 needs to cover improvements and personal property
Review the master policy carefully to understand what's covered and what gap coverage your personal HO-6 condo owner's policy needs to provide.
Financing a Florida Condo
Not all condos are eligible for conventional, FHA, or VA financing:
- FHA-approved condos: FHA maintains an approved condo list. Non-approved condos require "spot approval" which is more difficult to obtain.
- VA-approved condos: Similar to FHA, the condo project must be VA-approved.
- Conventional financing (Fannie Mae/Freddie Mac): Lenders require a condo questionnaire to be completed by the HOA. Issues like high investor concentration, litigation, or low reserves can cause financing problems.
Always verify condo project approval with your lender before making an offer, especially if buying a unit in a smaller complex.