Many Florida homes are located in a homeowners association or a condominium. These communities can offer pools, clubhouses, well-kept common areas, and standards that help protect property values. They also come with rules, regular assessments, and shared decisions. A buyer who learns about the association before signing a contract is far more likely to be happy after moving in.
This article is general information and is not legal advice. The association's attorney should be consulted.
Start With the Governing Documents
The first question to ask is whether the home is part of an association. If it is, the governing documents should be obtained and read. These usually include:
- The declaration of covenants or the declaration of condominium
- The articles of incorporation and the bylaws
- The rules and regulations
- Architectural guidelines, if any
These documents control assessments, architectural changes, paint colors, fences, landscaping, parking, pets, leasing, and much more. Every owner agrees to follow them when the home is purchased. Anything unclear should be discussed with the real estate agent or an attorney.
Talking with current residents can also be helpful. They can share how the community is run, how responsive the board and manager are, and how rules are enforced.
Disclosures Required by Florida Law
Florida law requires specific disclosures to buyers.
Homeowners associations. Under section 720.401, a prospective buyer must be given a disclosure summary before signing the contract. The summary states that membership is mandatory, that assessments must be paid, and that failure to pay could result in a lien. If the summary is not provided before the contract is signed, the contract is voidable by the buyer by written notice within 3 days after receiving the summary or before closing, whichever occurs first.
Condominiums. Under section 718.503(2), a buyer of a resale unit is entitled to copies of the declaration, articles, bylaws, rules, the annual financial statement and budget, and a frequently asked questions document. Where applicable, the buyer is also entitled to the milestone inspection summary and the structural integrity reserve study, or a statement that no study has been completed. If those documents are not delivered more than 7 days before the contract is signed, excluding weekends and legal holidays, the buyer generally may cancel within 7 days after receiving them, and the right ends at closing.
Understanding Assessments
The association's budget should be reviewed, since it sets the assessments and shows what they pay for. Assessments are not optional. A condominium association has a lien to secure unpaid assessments under section 718.116, and a homeowners association has one under section 720.3085 when the governing documents authorize it. Serious delinquencies can lead to foreclosure.
Buyers should find out what the assessment covers. Common area maintenance, landscaping, insurance for common property, amenities, and management are typical. In some communities, exterior maintenance, roofs, water, cable, or internet are also included. Any pending special assessments should be asked about. An estoppel certificate, which states what is owed on the property at closing, is explained in
the estoppel letter from a homeowners association.
Check the Reserves
Roofs, paving, painting, and other major components wear out on a predictable schedule. A well-run association sets money aside in reserves for those costs. When reserves are low, special assessments are more likely. For condominium buildings three stories or higher, the structural integrity reserve study should be reviewed closely, since it shows the funding needed for major structural items. More on this subject can be found in
the consequences of not having cash reserves.
Set Realistic Expectations
No community association is perfect. Decisions are made by volunteer boards and are not always popular. Rules will sometimes limit what an owner can do with a home. A buyer who dislikes the idea of architectural approval, pet limits, or parking rules should think carefully before buying in an association.
Get Involved After Moving In
Once the purchase is complete, new owners are encouraged to attend board and annual meetings, read community notices, and consider serving on a committee or the board. Owners who take part help shape the community they live in.
Condominium Associates manages homeowners and condominium associations in the Tampa Bay, Sarasota, and Pasco areas. For questions about living in an association,
contact us.
