In response to the tragic collapse of the Champlain Towers South in Surfside in 2021, Florida has implemented significant legislative changes to enhance condominium safety and transparency. As of January 1, 2025, new regulations are in effect that impact condominium sales and ownership across the state. These laws aim to safeguard residents, ensure structural integrity, and promote financial transparency within condominium communities.

condo building

Mandatory Disclosures in Condo Sale Contracts

Effective January 1, 2025, all condominium sale contracts in Florida must include clear statements regarding:

  • Milestone Inspections: Structural evaluations required for buildings meeting specific criteria.
  • Turnover Reports: Documents detailing the transition of control from developers to condo associations.
  • Structural Integrity Reserve Studies: Assessments that determine the funds necessary for future critical repairs.

To facilitate compliance, Florida Realtors has updated relevant forms, accessible through Form Simplicity. These changes aim to ensure that buyers are fully informed about the state of a property before committing to a purchase.

Understanding Milestone Inspections

The legislation mandates “milestone inspections” for condominium buildings that are three stories or higher. These inspections are required 30 years after initial occupancy, or 25 years if the building is within three miles of the coast, with subsequent inspections every 10 years. The goal is to identify and address structural issues promptly, ensuring resident safety.

For two-story condominiums, these milestone inspections are not required. This exemption reflects the lower risk associated with smaller, shorter buildings, which are less likely to pose significant safety concerns in the event of structural failure.

Turnover Reports and Their Importance

A turnover report is prepared during the transition of control from a developer to the condominium association. It includes vital information about the property’s condition, financial status, and any pending legal matters. The new regulations require that these reports be disclosed to potential buyers, promoting transparency and informed decision-making.

Structural Integrity Reserve Studies

Condominium associations are now required to conduct structural integrity reserve studies at least every ten years. These studies assess the condition of critical components like roofs, load-bearing walls, and fire-protection systems, and determine the necessary reserve funds for future repairs. Importantly, associations can no longer waive the requirement to maintain these reserves, ensuring that funds are available for essential maintenance.

For two-story condominiums, these reserve studies may not be mandatory. However, associations governing these smaller buildings are encouraged to adopt such practices voluntarily to safeguard long-term property values and resident safety.

Impact on Condominium Owners and Buyers

These legislative changes aim to enhance safety and transparency but come with financial implications:

  • Increased Costs: Condominium owners may face higher association fees to build adequate reserve funds and cover the costs of mandatory inspections and repairs. This has led to concerns, especially among retirees and those on fixed incomes, about the affordability of condo living.
  • Market Dynamics: The new requirements have influenced the real estate market, with some owners choosing to sell due to anticipated costs. This has resulted in an increase in condo listings, particularly in older buildings subject to the new regulations.

For owners in two-story condominiums, the financial burden is less pronounced due to exemptions from some of the stricter requirements. For owners of three-story or taller condominiums, however, compliance with these regulations may lead to significant changes in their monthly fees and overall property costs.

Revised Forms for Compliance

To assist in adhering to these new laws, Florida Realtors has updated several forms:

  • Receipt of Condominium Documents (RCD-7): Ensures buyers acknowledge receipt of all necessary documents, including financial statements and budgets.
  • Seller’s Property Disclosure Condominium (SPDC-2): Allows sellers to disclose the property’s condition and any known issues comprehensively.

These forms are designed to facilitate compliance and promote transparency in condominium transactions.

Key Distinctions Between Two-Story and Taller Condos

Florida’s new condo rules introduce differing requirements based on building height:

Two-Story Condominiums

  • Exempt from mandatory milestone inspections.
  • May not be required to conduct structural integrity reserve studies.
  • Associations have more flexibility in determining maintenance and funding practices.

Three-Story or Taller Condominiums

  • Must undergo milestone inspections starting 30 years after occupancy (25 years if within three miles of the coast) and every 10 years thereafter.
  • Required to conduct structural integrity reserve studies every 10 years.
  • Prohibited from waiving reserve funding requirements for critical repairs, such as roofs, load-bearing walls, and fire-protection systems.

The distinction is driven by the higher potential for loss of life and property damage in larger, multi-story buildings. Taller buildings also house more residents, making safety and structural soundness even more critical.

Looking Ahead

While the primary goal of these legislative changes is to prevent tragedies like the Surfside collapse and ensure the safety of condominium residents, they also introduce new challenges. Balancing safety with affordability remains a critical concern for lawmakers, associations, and residents alike.

As these regulations take effect, it is essential for all stakeholders to stay informed and engaged. Condominium owners should participate actively in association meetings, potential buyers must conduct thorough due diligence, and real estate professionals need to guide their clients through this evolving landscape.

By working together, Florida can achieve the dual objectives of safety and sustainability in its condominium communities.