Florida Condo Buying Checklist

Why condo due diligence is different

When you buy a condo you are buying a unit plus a share of a building, its budget, and its decisions. The unit can be perfect while the building has a failing roof, an underfunded reserve account, or a lawsuit. In South Florida the stakes rose after the 2021 Surfside collapse, when state law tightened structural inspection and reserve requirements for older buildings, and many associations responded with large special assessments.

The practical result is that the association's documents deserve as much attention as the unit's inspection. Florida law gives buyers a right to receive the governing documents and a question-and-answer sheet, with a short window to cancel after receiving them, so use that window to read everything.

The condo questionnaire and governing documents

Request the declaration of condominium, bylaws, rules and regulations, the current budget, the most recent year-end financial statement, the last twelve months of board meeting minutes, and the frequently asked questions sheet. If financing, the lender will also send the association a condo questionnaire covering owner-occupancy ratio, delinquencies, litigation, insurance, and commercial space.

The minutes are where problems appear first: discussions of leaks, elevator failures, insurance non-renewals, structural engineering reports, or disputes with contractors. Read them before the budget, because they explain the budget.

Reserves and special assessments

Reserves are savings for major repairs such as roof, paint and waterproofing, elevators, and structural components. Florida law now requires associations of buildings three stories or taller to complete a structural integrity reserve study and to fund reserves for the structural items it identifies, and owners can no longer vote to waive those reserves. Ask for the reserve study and compare the recommended funding to what is actually in the account.

A special assessment is a one-time charge to owners when reserves fall short of a needed project. Ask specifically whether any assessment has been approved, proposed, or discussed, how much remains unpaid on the unit, and who pays it under the contract. The standard Florida contract addresses how pending and approved assessments are split between buyer and seller, so the answer changes the price.

Milestone inspections and recertification

Buildings three stories or higher in Florida must undergo a milestone structural inspection once they reach a certain age, generally thirty years, with follow-up inspections every ten years, and local governments can set earlier thresholds. Miami-Dade and Broward also have long-standing building recertification programs, historically known as the 40-year recertification, that require older buildings to be certified by an engineer or architect for structural and electrical safety.

Ask for the most recent milestone inspection report or recertification letter, the date of the next one, and whether a phase two inspection or repairs were required. A building that has passed recently with no major findings is in a different risk category from one that is overdue or in the middle of repairs.

Financing: warrantable, non-warrantable, and FHA

Conventional lenders selling loans to Fannie Mae or Freddie Mac require the condo project to be warrantable, which depends on factors such as owner-occupancy ratio, the share of units owned by a single investor, delinquency rates, commercial space, litigation, reserve funding, and whether the building has significant deferred maintenance or unresolved structural findings. A non-warrantable building can still be financed, but usually with a portfolio lender, a larger down payment, and a higher rate.

FHA and VA loans require the condo project to be approved by those agencies, and many South Florida buildings are not. Buyers planning to use FHA or VA financing should confirm the building's approval status before writing an offer, and all buyers should have the lender review the condo questionnaire early in the inspection period rather than days before closing.

Insurance: the master policy and your HO-6

The association carries a master policy covering the building structure and common elements, and its cost is a large part of the budget in South Florida. Ask for the current declarations page, the deductible for windstorm, and whether the policy was renewed without difficulty. Buildings with open structural issues or old roofs sometimes struggle to find coverage, and that shows up as a budget jump.

The unit owner carries an HO-6 policy for interior finishes, personal property, liability, and loss assessment coverage, which helps pay the owner's share of an association deductible or assessment after a covered loss. Flood insurance for the building is the association's responsibility if required, but a contents flood policy for the unit is a separate decision.

Rules that affect how you live and rent

Review rental restrictions (minimum lease terms, how many times a year a unit may be leased, waiting periods after purchase), pet rules, approval procedures and fees for buyers and tenants, parking and storage assignments, and any age restrictions. These rules affect both daily life and resale value, and they are enforced.

Confirm what the monthly dues include. In some buildings they cover water, cable, internet, and insurance; in others only the basics. Comparing dues between buildings without knowing what is included leads to wrong conclusions.

Questions we hear first