An estimated 70% of new homes sold in South Florida are in communities governed by a Homeowners Association (HOA). Before you buy, it's essential to understand what you're signing up for — and your rights as a buyer.
Florida HOA Law: Chapter 720
Florida HOAs are governed by Florida Statute Chapter 720 (the Homeowners' Association Act). This law sets the rules for how HOAs operate, what they can and cannot do, and what rights members have. Understanding Chapter 720 empowers buyers to know their rights and protections.
What HOA Documents Should You Request?
Under Florida law, sellers in HOA communities must provide buyers with specific documents. Request all of the following before the inspection period expires:
- Declaration of Covenants, Conditions, and Restrictions (CC&Rs) — the foundational governing document; outlines what you can and cannot do with your property
- Bylaws — govern how the association itself operates (elections, meetings, board structure)
- Rules and Regulations — often more specific than the CC&Rs; cover day-to-day life (parking, pets, landscaping, noise)
- Current Budget — shows income, expenses, and whether the HOA is financially healthy
- Reserve Study / Reserve Fund Balance — estimates future major repair costs and whether adequate funds are being set aside
- Most Recent Annual Financial Statement
- Meeting Minutes (last 12 months) — often reveal upcoming assessments, litigation, or disputes
- Estoppel Certificate — confirms current dues, any unpaid assessments, and pending violations against the property
Buyer's Cancellation Right
Under Florida Statute 720.401, if the seller has not previously provided the required HOA documents, the buyer has 3 days (excluding Saturdays, Sundays, and legal holidays) from receipt of the HOA documents to cancel the contract and receive a full refund of the deposit. This right cannot be waived by the buyer in advance.
Key Things to Evaluate in HOA Documents
Financial Health
A well-funded reserve account is critical. If the HOA is underfunded for major repairs (roofs, roads, pools, elevators), you may face a special assessment — a one-time charge to all owners for a large expense. Review the reserve study to understand long-term funding levels.
Pending Special Assessments
Check the estoppel certificate and meeting minutes for any approved or pending special assessments. A special assessment not disclosed by the seller can sometimes be negotiated as a seller credit at closing.
Rental Restrictions
Many Florida HOAs restrict rental of units — minimum lease terms, required board approval, caps on total rentals, etc. If you plan to rent the property, verify rental policies before buying.
Pet Restrictions
Review rules regarding number, breed, and size of pets. Some HOAs prohibit certain dog breeds entirely.
Litigation
Is the HOA involved in any active lawsuits? Litigation can indicate financial problems or governance issues. Ask directly and review the meeting minutes.
HOA Fees in Broward County
HOA fees in Broward County vary widely:
- Single-family home communities: $100 to $500+ per month
- Townhomes: $200 to $600+ per month (often includes exterior maintenance and roof)
- Condos: $300 to $1,500+ per month (often includes building insurance, water, cable, amenities)
Higher fees are not always a negative — they often reflect more included services (landscaping, exterior painting, roof, water) and better-funded reserves.