New Condo Rules you NEED to Know

Condo Rules you NEED to Know

In June 2021, the Surfside Condominium collapsed, killing 98, injuring 11 and 35 people were rescued from the rubble.  This was a tragedy that could have been avoided.

The State of Florida has instituted news rules for condominiums that impact both buyers and sellers.

In simple terms, the rules state that condo that are 30 years of age (25 if within 3 miles of a coast) need to have a structural integrity inspection.  Buildings that are at that 30-year mark have until December 2024 to have that report completed.  This applies to buildings over 3 stories tall.

Some condo associations will have to schedule and pay for a structural integrity report.  If deficiencies are noted, then repairs will need to be made.

How does this impact buyers of condos? 

The primary thing to remember is, “if you buy it, you own it.”  That may sound trite but it covers the weight of the matter.  The buyer of a condo buys all the assessments and future assessments of the property.

This brings up an implication for sellers.  The seller is required to provide the buyer the following documents:

• Declaration of Condominium
• Amendments
• Articles of Incorporation
• Bylaws and Rules of the Association
• Copy of the most recent year-end financial information budget
• Frequently asked question and answer document
• Copy of Insurance Declaration Page
• Last 12 months of Condo/HOA meeting minutes
• Buyer Application

While the buyer’s agent should review the documents, it is the ultimate responsibility of the buyer to read the documents.

Going back to the structural integrity report: if the report shows that the pillars need to be rebuilt generating an annual assessment of $3000 for 5 years, the buyer should know that before they commit to buying the condo.  The seller is obligated to share that knowledge.  That is why the 12 months of meeting minutes is critical.  The topic may have been discussed and approved four months ago.  If only the last month or two months of meetings are shared, the buyer would be unaware of the assessment.

The contract specifies that these documents should be provided prior to closing.  For example, if the closing is supposed to happen on Wednesday, the documents could be delivered Tuesday.  The problem is that does not leave much time to review the documents.  Nor is there a provision to cancel the contract if the documents reveal negative information.

The buyer should add an addendum requesting documents at least 5 days prior to closing with the right to cancel.

The seller should gather these documents as soon as possible and the listing agent can upload them into the MLS system.  This allows the documents to be readily available for review even before a contract is presented, saving time and aggravation.

A link to the full bill can be found here.

https://www.flsenate.gov/Session/Bill/2022D/5D/BillText/c1/PDF