8.3 Florida Condos, HOAs, Taxes, and Environment
Key Takeaways
- Condominiums are governed by Chapter 718, cooperatives by Chapter 719, and homeowners' associations by Chapter 720; in a condo the owner holds fee title to the unit plus an undivided share of common elements, while a co-op owner holds shares in a corporation and a proprietary lease.
- A buyer of a NEW (developer) condo has a 15-day right to void after receiving the developer documents; for resale (non-developer) condos the cancellation period is 7 days (excluding weekends/holidays) for contracts on or after July 1, 2025, after receiving the disclosure summary, governing documents, and FAQ.
- Florida's homestead tax exemption removes up to $50,000 of assessed value ($25,000 for all taxes plus another $25,000 on value between $50,000 and $75,000, excluding school taxes).
- The Save Our Homes cap limits annual increases in the assessed value of homestead property to 3% or the change in the CPI, whichever is lower.
- Ad valorem taxes are based on assessed value, while non-ad valorem assessments (solid waste, stormwater, CDD bonds) are flat charges that the homestead exemption does not reduce.
Condominiums vs. Cooperatives vs. HOAs
Florida treats the three common forms of shared-interest ownership under separate statutes, and the exam tests the distinctions:
| Form | Statute | What the owner holds |
|---|---|---|
| Condominium | Chapter 718 | Fee simple title to the unit plus an undivided share of the common elements |
| Cooperative | Chapter 719 | Shares in a corporation plus a proprietary lease of the unit (personal property, not real property) |
| HOA (planned community) | Chapter 720 | Fee simple title to a lot/home; the association owns/maintains common areas |
In a condominium, the owner can mortgage the individual unit and the unit is taxed separately. In a cooperative, the corporation typically holds one blanket mortgage and one tax bill, and a buyer usually needs board approval — a default by one shareholder can affect the others. In an HOA, lots are individually owned and financed, and the association's power comes from recorded covenants, conditions, and restrictions (CC&Rs) plus Chapter 720.
All three forms levy assessments to fund operations and maintenance, and unpaid assessments can ripen into a lien that the association may foreclose. A condominium's common-element costs and reserves (now more strictly regulated for safety items after the 2024 reforms requiring Structural Integrity Reserve Studies for older buildings of three stories or more) are shared per the declaration.
A licensee representing a buyer in any association-governed community should confirm the estoppel certificate — the association's statement of the amounts currently owed on the unit — so that the buyer does not inherit a prior owner's delinquency at closing.
Condominium Disclosure and Cancellation Rights
Chapter 718 gives condo buyers strong cancellation rights, and the rules differ by whether the seller is the developer:
- New condo (sold by the developer): the buyer has a 15-day right to void the contract after signing and receiving the required developer documents (prospectus, declaration, bylaws, estimated operating budget). A new, materially adverse amendment restarts a 15-day window. The developer generally cannot close during this period unless the buyer waives it.
- Resale condo (non-developer seller): the seller must deliver the governance documents — declaration, bylaws, articles, rules, the Frequently Asked Questions and Answers sheet, and the governance form/disclosure summary. The buyer's cancellation period is 7 days (excluding weekends and legal holidays) after receiving these documents, for contracts executed on or after July 1, 2025 (previously 3 days).
Exam trap: older study material says the resale rescission is 3 days. For current contracts it is 7 days. New-developer condos remain 15 days. HOA (Chapter 720) resales require delivery of the governing documents and an HOA disclosure summary, with the buyer's 3-day cancellation right keyed to delivery.
Homestead Exemption and Save Our Homes
Florida's property-tax homestead exemption is separate from the constitutional creditor homestead protection. For a permanent Florida resident's primary home:
- The first $25,000 of assessed value is exempt from all property taxes.
- An additional $25,000 exemption applies to assessed value between $50,000 and $75,000, but not to school district taxes.
- Together this removes up to $50,000 of value (the value between $25,000 and $50,000 is fully taxed).
Layered on top is the Save Our Homes (SOH) cap, which limits the annual increase in assessed value of homestead property to 3% or the change in the Consumer Price Index (CPI), whichever is lower (the 2026 CPI figure is 2.7%). Over time SOH creates a gap between market value and assessed value; up to $500,000 of that benefit is portable to the owner's next Florida homestead. Additional exemptions exist for seniors, veterans, surviving spouses, and disabled owners.
Ad Valorem Taxes, Assessments, and Florida Environmental Issues
Florida property tax bills combine two categories that the exam contrasts:
| Charge | Basis | Affected by homestead exemption? |
|---|---|---|
| Ad valorem tax | A millage rate applied to assessed value ("according to value") | Yes — the exemption lowers the taxable value |
| Non-ad valorem assessment | A flat charge for a service or improvement (solid waste, stormwater, fire, Community Development District (CDD) bonds) | No — these survive the exemption |
Florida's geography drives several environmental concerns a licensee must flag:
- Coastal construction: building seaward of the Coastal Construction Control Line (CCCL) requires a state permit, and the FR/BAR coastal addendum covers riparian/erosion issues.
- Wetlands: development affecting wetlands needs permits from the water management district and may trigger federal Clean Water Act review.
- Flood and insurance: much of Florida sits in FEMA flood zones; lenders require flood insurance in Special Flood Hazard Areas, and rising premiums plus Citizens Property Insurance and hurricane/wind-mitigation issues materially affect affordability.
- Sinkholes: parts of Florida are karst terrain; known sinkhole activity is a latent material defect that triggers the Johnson v. Davis disclosure duty.
Two additional Florida-specific items round out environmental practice. First, mold and moisture intrusion is common in the humid climate and, if known and hidden, is also disclosable. Second, a buyer relying on well or septic systems (common outside municipal service areas) should investigate water quality and drainfield condition, because Florida's high water table and proximity to drinking-water aquifers heighten contamination risk.
Finally, agents should never give legal or tax advice on these issues: the correct practice is to disclose what is known, recommend qualified inspections (survey, four-point and wind-mitigation inspections for insurance, elevation certificates for flood), and let specialists and attorneys advise on remediation and liability.
How does ownership in a Florida cooperative (Chapter 719) differ from a condominium (Chapter 718)?
A buyer signs a contract on August 1, 2025, to purchase a RESALE condominium. After receiving the governing documents and disclosure summary, how long is the cancellation period?
Which charge on a Florida tax bill is NOT reduced by the homestead exemption?
Under Save Our Homes, the annual increase in a Florida homestead's assessed value is capped at:
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