Review the association as carefully as the residence
A condominium purchase includes both a private residence and an interest in a shared building. Buyers should examine the governing documents, budget, reserves, meeting records, pending projects, insurance information, litigation disclosures and any available engineering or inspection materials with qualified professionals.
- Declaration, bylaws, rules and current amendments
- Current budget and recent financial statements
- Reserve studies and milestone-inspection materials when applicable
- Recent board and membership meeting minutes
- Current or contemplated special assessments
- Master insurance coverage and deductibles
Understand reserve and inspection information
Florida’s condominium requirements have changed significantly since 2022 and continue to be updated. Buildings subject to milestone-inspection and structural-integrity-reserve-study requirements may have extensive reports and funding plans. Do not reduce the review to a single reserve balance; understand the study, planned funding and identified work.
- Which requirements apply to this building
- Whether studies and inspections are complete
- How recommended work will be funded
- Whether budgets, assessments or loans are expected to change
Bring in the right professionals
Real estate advisors can organize questions and transaction strategy, but legal, engineering, accounting, insurance and lending conclusions should come from the appropriate licensed professionals. Requirements and documents can change, so confirm current law and the building’s current records before relying on published summaries.
Questions Clients Ask
Frequently asked questions
Is a large reserve balance enough to show a condominium is financially healthy?
Not by itself. Review the reserve study, anticipated projects, funding plan, operating budget, assessments, insurance obligations and building-specific conditions.
Who should review condominium documents?
A qualified Florida attorney should address legal issues. Engineering, insurance, lending and accounting questions should be reviewed by professionals in those fields.