Please Don't Buy a Florida Condo Until You Know These 3 Things

Condominiums are one of the most popular housing options in Florida, and for good reason. They offer waterfront views, resort-style amenities, and a lock-and-leave lifestyle that works especially well for retirees, seasonal residents, and anyone who wants to live near the coast without maintaining a yard. But buying a condo in Florida is not the same as buying a single-family home. When you purchase a condo, you are buying into a shared financial and legal structure — a condominium association — and that structure comes with its own set of risks and responsibilities.

I have seen too many buyers fall in love with a pretty lobby, a stunning pool, and a unit with beautiful finishes, only to discover after closing that the building has significant deferred maintenance, the association's reserves are critically underfunded, or the HOA rules prohibit exactly what they planned to do with the property. The good news is that all of this is discoverable before you buy, if you know what to look for and what to ask.

Here are the three things I want every buyer to understand before they purchase a condo in Florida.

1. Building Condition: Milestone Inspections and Structural Integrity Reserve Studies

The first thing to understand is that the condition of the building matters as much as the condition of the unit you are buying. You could have the most beautifully renovated kitchen and the most updated bathroom, but if the building's roof is at the end of its useful life, or the concrete structure has deferred maintenance, those costs will eventually come back to you — often in the form of a special assessment that can run into tens of thousands of dollars.

Since the Champlain Towers collapse in Surfside in 2021, Florida has enacted significant legislation requiring condominium and cooperative buildings three stories or taller to undergo two critical processes:

Milestone Inspections. These are structural inspections required by Florida law (SB 4-D, codified in Florida Statute 553.899) for condominium buildings three stories or taller. The first milestone inspection must be completed by the time the building reaches 25 years of age (or 30 years if the building received its certificate of occupancy after July 1, 1992), and every 10 years thereafter. The inspection evaluates the building's structural integrity, including load-bearing walls, the primary structural frame, the foundation, the roof, and the waterproofing systems. The inspector issues a report that classifies the building's condition and, if needed, recommends repairs.

Structural Integrity Reserve Studies (SIRS). This is a separate requirement that goes hand-in-hand with the milestone inspection. A SIRS is a study that evaluates the remaining useful life of the building's major structural components and estimates the cost of repairing or replacing them. Unlike a standard reserve study (which many well-managed associations already did on a voluntary basis), a SIRS is now mandatory for buildings three stories or taller, and it covers specific items: roofing, load-bearing walls, primary structural frame, foundation, electrical systems, plumbing, fire protection, and waterproofing.

The law requires associations to fund reserves for these structural components at 100% of the amount recommended by the SIRS. Associations can no longer waive or reduce reserves for these items, which was common practice before the law changed. This is a significant shift, and it has direct implications for buyers:

• Buildings that are well-managed and have been properly funding reserves for years may see only modest fee increases.
• Buildings that deferred maintenance or waived reserves for years are facing large catch-up contributions, often in the form of substantial special assessments.
• Older buildings that have not yet completed their milestone inspection or SIRS represent an unknown. You should ask whether they have been completed, and if so, request copies of both reports before you make an offer.

A pretty lobby, a clean hallway, and a friendly front desk staff do not tell you whether the concrete balconies have hidden corrosion or whether the roof has five years of useful life left or two. The only way to know is to read the inspection reports and the reserve study yourself, or have a qualified professional review them on your behalf. You can also read more about Florida's 2026 condo reserve laws for a deeper look at how this legislation affects buyers and sellers.

2. Money: Reserves, Budgets, and Special Assessments

The monthly HOA fee is the number that catches most buyers' attention, and it is an important number. But the monthly fee is not the whole story, and in some cases it is not even the most important number.

What the monthly fee actually covers. Condo HOA fees in the Sarasota area range from a few hundred dollars per month for a basic building with limited amenities to well over a thousand dollars for a full-service building with a concierge, valet, pool, fitness center, and other amenities. The fee typically covers the building's master insurance policy, maintenance of common areas, water, trash, management fees, and contributions to reserves. Some buildings also include cable, internet, and pest control in the fee.

The question you want to answer is not just how much the fee is, but whether the fee is adequate to cover the building's actual expenses. An association that keeps fees artificially low to attract buyers is often deferring maintenance and underfunding reserves — which means a special assessment is almost inevitable.

Reserves. The reserve fund is the association's savings account for major future repairs and replacements. A healthy reserve fund means the association has been setting aside money each year so that when the roof needs replacing or the parking garage needs resurfacing, the funds are already there. An underfunded reserve means the association will have to borrow the money or issue a special assessment when those expenses arrive. I always review the association's most recent reserve study and financial statements. I want to see whether the reserves are adequately funded according to the study's recommendations, and I want to understand the association's history of special assessments.

Special assessments. A special assessment is a one-time charge to each unit owner for an expense that the association did not budget for. It can be a flat fee per unit or calculated based on the square footage of your unit. Special assessments can range from a few hundred dollars for a minor repair to $50,000 or more per unit for major structural work. They are one of the biggest financial risks of condo ownership, and they are becoming more common in Florida as older buildings comply with the new structural integrity requirements.

Questions to ask before you buy. Here are the financial questions I work through with every condo buyer:

• When was the most recent reserve study completed, and are reserves currently funded at 100% of the study's recommendation?
• Has the building completed its structural integrity reserve study (SIRS)? What did it recommend, and what has the association done about it?
• Are there any pending or recently approved special assessments? Are any being discussed at board meetings?
• What is the association's delinquency rate on HOA fees? A high rate can indicate financial stress among owners or poor management.
• How much does the association have in its reserve fund right now, and what are the anticipated major expenses over the next five to ten years?
• Have there been any recent increases in the HOA fee, and what was the reason?

For a broader look at how association and community fees work in this area, including the difference between HOA fees and CDD fees, my guide to HOA and CDD fees in Sarasota explained covers what every buyer should understand before committing.

3. Lifestyle and Financing: Rules, Insurance, and Lender Requirements

The third thing I want every buyer to understand is that a condominium comes with a set of rules — the association's governing documents, declarations, bylaws, and rules and regulations — that will govern how you live in your home. These rules can cover everything from whether you can have a pet (and what size) to whether you can rent out your unit to whether you can park your vehicle in a certain spot.

HOA rules to review before you buy. Every association is different, which means the rules that apply to one building may be completely different from the rules across the street. Here are the categories I look at with every buyer:

• Pets. Does the association allow pets? Are there breed or weight restrictions? Is there a limit on the number of pets per unit? Are there designated pet areas?
• Rentals. Can you rent out your unit? Many Florida associations restrict short-term rentals (less than 30 days). Some require you to own the unit for a set period before you can rent it. Others have caps on the percentage of units that can be rented at any one time.
• Vehicles. Where can you park? Are there restrictions on boats, RVs, or commercial vehicles? Is there guest parking, and are there limits on how long guests can park?
• Renovations. What changes can you make to the interior of your unit? Are there restrictions on flooring (many associations require sound-dampening underlayment on upper floors)? Do you need board approval for renovations?
• Guests and occupancy. Are there limits on how long guests can stay? Are there occupancy restrictions based on the number of bedrooms?
• Amenities. Are the building's amenities (pool, gym, clubhouse) included in the fee, or are there additional charges? Are there reservation requirements for certain amenities?

If you are buying a condo as a second home or investment property, the rental restrictions alone can make or break your plans. I have seen buyers fall in love with a unit only to discover that the association prohibits short-term rentals entirely, which means the property cannot be used as an Airbnb or VRBO. I check the rental restrictions before you make an offer, not after.

Insurance: what the master policy covers and what you need. Insurance for condominiums works differently than for single-family homes. The association carries a master policy that typically covers the building's structure, common areas, and liability. But the master policy does not cover everything. Here is what you need to understand:

• The master policy. This covers the building itself — the roof, exterior walls, common areas, and the structural components of your unit (walls, floors, ceilings). Some master policies also cover the original fixtures and finishes in your unit (what insurance companies call "bare walls" coverage), while others are "all-in" policies that cover everything up to the interior paint and carpet.
• Your individual HO-6 policy. As a unit owner, you need your own condominium insurance policy. This covers your personal property, improvements you have made to the unit (such as upgraded cabinets or flooring), personal liability, and loss assessment coverage (which pays for your share of a special assessment if it is caused by a covered loss, such as a fire or hurricane).
• Flood insurance. If the building is in a designated flood zone, the association's master policy should include flood insurance for the structure. But your personal belongings and interior improvements are not covered by the master policy. You need your own flood insurance policy for your unit, and if you have a mortgage, your lender will almost certainly require it.

Florida's insurance market has been under significant pressure in recent years, with rising premiums and some carriers leaving the state. I pay close attention to the association's insurance coverage and deductible amounts, and I recommend that every buyer speak with a licensed insurance agent who specializes in condominium coverage. For a comprehensive overview, my Florida homeowners insurance guide covers what buyers and owners need to know about the current market.

Financing: why lenders evaluate the project too. This is something many first-time condo buyers don't realize until they are already under contract: when you apply for a mortgage on a condominium, the lender evaluates not just your financial qualifications but also the condominium project itself. If the building does not meet the lender's requirements, you may not be able to get a conventional loan, even if you have excellent credit and a substantial down payment.

Lenders look at several factors when evaluating a condominium project:

• Owner-occupancy ratio. Most lenders require that at least 50% to 70% of the units be owner-occupied. Buildings with a high percentage of investor-owned or rental units may not qualify for conventional financing.
• Delinquency rate. If more than 15% of unit owners are delinquent on their HOA fees, the project may be considered too risky for the lender.
• Reserve funding. Lenders want to see that the association is adequately funding reserves. An association that has been waiving reserves may make the building ineligible for financing.
• Pending litigation. If the association is involved in significant litigation (such as a construction defect lawsuit), lenders may refuse to finance units in the building.
• Commercial space. Most lenders require that no more than 25% to 35% of the building's total square footage be used for commercial purposes.
• Insurance coverage. The building must have adequate insurance coverage, including property and liability insurance.

If the building does not meet the lender's requirements, your options may include seeking a Federal Housing Administration (FHA) or Veterans Affairs (VA) loan if the building is approved for those programs, putting down a larger down payment with a portfolio lender, or paying cash. But the best approach is to investigate financing early — before you make an offer — so there are no surprises. I recommend that every condo buyer speak with a lender who understands condominium financing and can review the project's eligibility before you start shopping.

For buyers weighing the trade-offs between a condo and a single-family home, my condo versus single-family home comparison goes deeper into the monthly costs, maintenance responsibilities, and lifestyle differences between the two options.

Putting It All Together: Your Condo Buying Checklist

Before you make an offer on a Florida condominium, here is the due diligence I recommend:

• Request and review the association's most recent financial statements, reserve study, and SIRS (if applicable).
• Ask whether the building has completed its milestone inspection, and request a copy of the report.
• Review the meeting minutes from the past 12 to 24 months for discussions about deferred maintenance, special assessments, or pending litigation.
• Read the governing documents, declarations, bylaws, and rules and regulations — particularly the sections on pets, rentals, vehicles, and renovations.
• Confirm what the master insurance policy covers and what you need for your own HO-6 policy.
• Check whether the building meets your lender's requirements for condominium project approval.
• Review the flood zone designation for the building and understand the insurance implications.

This may feel like a lot of work, and it is. But I have seen buyers avoid significant financial surprises — special assessments in the tens of thousands, buildings that could not be financed, and units that could not be rented as planned — because they took the time to do this due diligence before signing. I walk every condo buyer through this process personally, and I do not let clients move forward until we have the answers we need.

For a more detailed checklist of the specific questions to ask about a condo association before making an offer, see my article on what to ask about a condo before making an offer.

If you are also considering buying in a community with a homeowners association as opposed to a condominium association, my guide to HOA and CDD fees in Sarasota explains the differences and what to expect from each.

Disclaimer: This article is for educational and informational purposes only and does not constitute legal, financial, or insurance advice. Condominium laws, association governing documents, lender requirements, and insurance regulations vary and may change. You should consult with qualified professionals — including a real estate attorney, a licensed mortgage lender, and a licensed insurance agent — before purchasing any condominium property.