Buying a condo in Florida: what to check before you fall in love
Florida condos are wonderful — until the building's finances aren't. The view sells the unit; the association's balance sheet decides whether it was a good purchase. Here's the due diligence Sam runs on every condo before a client offers.
1. The association's money
Request the budget, the reserve study, and recent meeting minutes. Healthy buildings fund reserves for roofs, elevators, and structural work; unhealthy ones run thin and levy special assessments when the bill arrives. Minutes tell you what owners are actually arguing about — often more revealing than the budget itself.
2. The building's condition and inspections
Florida's post-Surfside rules put older coastal buildings on formal milestone-inspection and reserve schedules. Ask where the building stands: completed inspections, findings, and how repairs are being funded. A building that has already done the work is a very different purchase from one with the bill still coming.
3. Insurance — the quiet cost driver
The association's master policy covers the structure; you insure your unit's interior and contents. Master-policy costs have moved sharply in Florida, and they flow straight into monthly dues. Read the policy summary: coverage amounts, wind and flood deductibles, and when it was last renewed.
4. Financing realities
Lenders review the building, not just you: owner-occupancy ratios, reserve funding, insurance, litigation. Some buildings sail through; some need non-warrantable programs. Because Sam also advises on financing through his Optima Financing practice, the building's financeability is checked before you write, not discovered in week three of escrow.
Condo shopping in Florida? Begin Property Discovery — tell Sam the buildings you're watching and the association review starts before your first tour.
Florida condo FAQs
What should I review before buying a Florida condo?
Four things above all: the association's budget and reserve funding, the building's inspection and repair history, the master insurance policy, and any pending special assessments or litigation. These determine both your monthly cost and whether lenders will finance units in the building.
What is a special assessment?
A one-time charge the association levies on owners when reserves cannot cover a major expense such as roofing, concrete restoration, or insurance increases. Reviewing meeting minutes and reserve studies before you offer is the best defense against buying into one unknowingly.
Are older Florida condo buildings harder to finance?
They can be. Buildings with weak reserves, major deferred maintenance, or incomplete milestone inspections may not pass lender project review. That does not always kill a purchase — some programs accommodate non-warrantable condos — but it changes the financing strategy, so it should be known early.