In Florida condominium sales, sellers must adhere to a complex set of disclosure requirements designed to protect buyers. For real estate agents and sellers alike, understanding these obligations helps ensure legal compliance while facilitating smooth transactions.

Statutory Foundation for Disclosures

Florida Statutes Chapter 718, commonly known as the Condominium Act, establishes the primary framework for condominium disclosures. Section 718.503 specifically addresses required disclosures before the sale of residential units, creating distinct obligations for developers and non-developer owners.

These statutory requirements aim to provide potential buyers with information about both the specific unit and the condominium association. Required disclosures give buyers the information they need to consider whether to buy or not.

Required Documents for Review

Florida Administrative Code Rule 61B-18 implements the statutory requirements by specifying exactly which documents must be provided to prospective buyers. These include:

Declaration of condominium
Articles of incorporation
Bylaws and rules of the association
Most recent year-end financial information
Frequently asked questions and answers document
Governance form

It is important to note that these documents must be provided at the seller’s expense. Buyers then have three business days after receiving these documents to cancel the contract without penalty.

“Required disclosures give buyers the information they need to consider whether to buy or not.”

Financial Disclosures

Financial transparency represents a critical component of condominium disclosures. Sellers must provide:

Current association financial statements
Information about reserve funding
Pending special assessments
Monthly maintenance fees
Recent or planned increases in fees

These financial disclosures help buyers understand ongoing financial obligations and potential future expenses associated with the property.

Association Approval Requirements

Sellers must disclose any association approval requirements for buyers. These might include:

Application procedures
Background check requirements
Interview processes
Approval timeframes
Application fees

While there may not be express legal requirements to provide the above information to buyers, failure to disclose these requirements can lead to transaction delays or complications if buyers cannot satisfy association criteria.

Special Assessment and Budget Disclosures

Sellers must disclose any pending special assessments, even those that have been approved but not yet levied. Additionally, disclosure of the association’s budget is required, including:

Regular maintenance fees
Reserve funding status
Any underfunded reserves
Upcoming major repairs or improvements

These disclosures help buyers understand both immediate and long-term financial obligations associated with the property.

Rules and Restrictions

It is a requirement that sellers disclose association rules and restrictions affecting unit use. These typically include:

Rental restrictions
Pet policies
Age restrictions
Parking regulations
Architectural control requirements

Providing these rules before contract helps buyers determine whether the community aligns with their lifestyle needs.

Material Defects and Condition Disclosures

Beyond association-related disclosures, Florida condominium sellers must also disclose material defects affecting the unit itself. According to Florida Statutes, this includes:

Known defects that materially affect the property value
Building code violations
Water intrusion or mold issues
Structural problems
Major appliance defects

Proper disclosure of these conditions protects sellers from future liability while ensuring buyers make informed decisions.

Special Requirements for Developer Sales

When the seller of a condominium unit is a developer, there are additional disclosure requirements beyond those for individual resales. These include:

Estimated completion dates for buildings and amenities
Escrow requirements for buyer deposits
Developer rights to alter common elements
Expected recreational facilities and fees
Floor plans and specifications

These enhanced requirements recognize the unique risks associated with purchasing pre-construction or newly developed condominium units.

Delivery Timing and Methods

The Florida Administrative Code, a set of agency enforced rules that derive their origins from Florida Statutes but are distinct from statutory law, establishes specific requirements for disclosure delivery. According to Rule 61B-18, disclosures must:

Be provided before execution of the contract
Be delivered in person or by certified mail
Include a receipt acknowledging delivery
Allow the statutory review period before closing

Proper documentation of disclosure delivery helps protect sellers from legal claims that required information was not provided.

Consequences of Non-Compliance

Failure to provide required disclosures can have serious consequences, including:

Buyer’s extended right to cancel the contract
Potential claims for fraudulent concealment
Liability for damages caused by undisclosed issues
Legal fees and costs in resulting disputes

Making thorough, timely and accurate disclosures avoid these potentially devastating consequences.

Recent Updates to Requirements

Disclosure requirements continue to evolve through legislative changes and administrative rulemaking. Recent updates have addressed:

Electronic delivery options for documents
Association website requirements for certain documents
Expanded disclosures regarding building structural integrity
Additional reserve funding information

Sellers should consult current resources to ensure compliance with the most recent requirements.

Conclusion

Condominium sellers in Florida face substantial disclosure obligations designed to protect buyers and facilitate informed decisions. While these requirements may seem burdensome, they ultimately benefit all parties by reducing disputes and ensuring transparency.

Working with knowledgeable real estate professionals familiar with condominium requirements helps ensure compliance while facilitating smooth transactions. When in doubt about specific disclosure obligations, consultation with a qualified real estate attorney provides peace of mind for condominium sellers who need to comply with Florida’s complex disclosure landscape.

South Florida Law

South Florida Law is a prominent law firm with a track record of success in handling complex condominium association (COA) transactions. Consulting with our legal professionals helps ensure proper handling of all aspects of condominium sales for both developer and non-developer sellers. When you work with our team, you benefit from the unique situation of having a legal partner with both big firm resources and boutique firm attention to detail. We can guide associations, owners, and developers through the complex legal requirements while protecting your best interests.

If you require a legal partner to help you manage a condominium transaction, then contact us today by calling (954) 900-8885 or by reaching out via our contact form.