Condominiums and associations
A Condo With a Special Assessment
Florida’s milestone inspection and reserve funding laws have made some perfectly good units almost unsellable on the open market. That is precisely the gap we fill.
- We buy with the assessment pending or already levied
- Milestone inspection findings do not stop us
- Associations with failed or underfunded reserves are fine
The Short Answer
Yes, you can sell a Florida condo that has a special assessment, but you must disclose it, and a pending assessment sharply reduces the pool of buyers because most lenders will not finance a unit in a building with unfunded structural obligations or a failed reserve study. Whether the seller or buyer pays an assessment that has been levied but not yet collected is negotiable and belongs in the contract. A cash buyer removes the lending problem entirely.
What changed in Florida condo law
After the Surfside collapse Florida enacted structural safety requirements that have reshaped the older condo market. Two things matter for sellers.
- Milestone inspections. Buildings three storeys and above must undergo a structural milestone inspection at thirty years, or twenty-five years within three miles of the coast, and then on a recurring cycle. Where the inspection finds substantial structural deterioration, a further phase of evaluation and repair follows.
- Structural integrity reserve studies. Associations must complete a reserve study covering major structural components and fund those reserves. Waiving or underfunding them is no longer freely available the way it was for decades.
The combined effect is that associations which deferred maintenance for thirty years are now levying assessments in the tens of thousands per unit, and owners on fixed incomes are being handed bills they cannot pay.
Why the unit will not sell retail
Lenders review the association’s finances. An underfunded reserve, an open milestone finding, pending litigation or a deferred maintenance backlog can make the whole building ineligible for conventional financing. Once that happens no financed buyer can purchase any unit in the building, regardless of how nice your unit is. The buyer pool collapses to cash buyers, and most cash buyers in that market are investors who want a discount for the uncertainty.
Meanwhile the assessment keeps accruing and the monthly dues usually rise as well.
How we handle it
We ask for the association’s documents early: the most recent reserve study, the milestone inspection report if one has been done, the current budget, minutes covering any assessment discussion, and the estoppel. We price the assessment as a known number rather than a scary unknown, and we tell you exactly how much of our offer it is consuming.
Many Florida associations require board approval of a buyer. We go through that process. It adds time and we will build it into the closing date rather than promising seven days we cannot deliver.
How it works
How the Sale Works From Here
Three simple steps. No obligation at any point.
-
Tell us about your house
Enter the address and answer five quick questions. It takes about 60 seconds and costs you nothing.
-
Get your written offer
We check recent comparable sales and the condition, then send a written, no-obligation cash offer, usually within 24 hours.
-
Close on your date
Pick the day. We close at a Florida title company, cover the closing costs, and you leave with cash, in as little as 7 days.
The honest comparison
Selling to us vs. listing with an agent
| Item | Sell House Quickly | Listing with an agent |
|---|---|---|
| Written offer in about 24 hours | Yes | No |
| No fees or commissions | Yes | No |
| You choose the closing date | Yes | No |
| No repairs needed | Yes | No |
| Sell your house as-is | Yes | No |
| We cover the closing costs | Yes | No |
| No showings or open houses | Yes | No |
| No financing that can fall through | Yes | No |
Local pages
Where This Comes Up Most
The markets where we see this situation most often, with local detail on each.
Questions
Questions sellers ask us
Do I have to pay the assessment before selling?
Not necessarily. Whether the seller pays a levied assessment, or it is prorated, or the buyer assumes it, is a contract term. What is not optional is disclosure. The estoppel certificate from the association will show it regardless, so there is nothing to gain by leaving it out.
What is an estoppel certificate?
A document from the association stating exactly what the unit owes: dues, any assessments, fines and transfer fees. Florida law requires the association to provide it within a set period and caps what they may charge. It is ordered during closing and it is where surprises surface.
My building failed its milestone inspection.
Send us the report. We buy in buildings with open findings. The scope and the association’s plan to fund the repairs are what drive the number.
Does the association have to approve you?
If the declaration requires buyer approval, yes, and we go through it. Tell us up front so we set a realistic closing date.
Can you buy a 55-plus unit?
Yes. Age-restricted communities narrow the retail buyer pool considerably, which is part of why those units sit. It does not stop us.
What if there is litigation involving the association?
Common right now and not a blocker. Pending litigation is one of the specific things that makes a building unwarrantable for conventional lending, which is exactly why these owners end up calling a cash buyer.
No obligation
Find out what we would pay for your house
No obligation, no fees, and no repairs. Find out what your Florida house is worth in cash today.
Rather talk? Call or text (305) 488-2530