New provisions to a Florida condo law went into effect on Jan. 1, requiring condo associations to be more transparent.

By making more information publicly accessible, the changes may help revive the state’s condo market, which has seen the median sale price fall 6.7% year over year.

"The new law in Florida could possibly breathe a bit of life into this struggling segment of the market by inspiring a bit of confidence among buyers who might have otherwise been reluctant to purchase a condo when they were unaware of the status of its inspections and reserves," says Joel Berner, senior economist at Realtor.com®.

Bank statements will now be available

According to the new law, condo associations with 25 or more units must now maintain a website where they post required documents.

The website must include specific official records, such as bank statements and ledgers.

"For buyers, this gives them more peace of mind," real estate agent and investor Ron Myers, of Ron Buys Florida Homes, tells Realtor.com. "They can see upfront if the building is financially healthy or if there are red flags, like underfunded reserves or a history of special assessments. Nobody wants to move in and then get hit with a surprise $10,000 repair bill from the HOA a few months later."

In the wake of the deadly 2021 Champlain Towers South collapse, Florida imposed new safety rules on older, midrise condos, including mandatory milestone inspections and increased reserve requirements.

Many owners were caught off guard by sizable assessment fees, which in turn drove condo sales down, as buyers became much more cautious.

"This new law drags the association’s paperwork into daylight, and that helps owners spot trouble early," says attorney Chad D. Cummings, of Cummings & Cummings Law in Florida.

Structural reports will now be online

Associations are now required to post governing documents, meeting information, contracts, and structural reports.

"Associations must put these records online, and they must post them quickly after they create or receive them," says Cummings. "No more 'hiding the ball.'"

Cummings says he expects fewer "surprise" special assessments because owners can now track inspection findings and reserve decisions.

"Owners will also see recent board minutes and required affidavits," says Cummings. "They'll see video recordings for video meetings without fighting for access."

These new provisions mean "the chaos of the last four years is at the tail end," Jeff Lichtenstein, CEO of Echo Fine Properties in Palm Beach, tells Realtor.com.

"Now, you'll know the health and status of financials and well-being of the structural aspects of the condominium as a whole, not just the unit," says Lichtenstein. "It puts it exactly on par with a single-family home purchase in where you know the structural situation after you do the inspection. Now you have the same for a condo."

Myers says this will give investors more confidence, too.

"High HOA fees already make it tough to get a good return, especially when rents are tight," says Myers. "The added transparency helps us plan ahead and avoid buying into a building that’s about to drop a big expense. It also helps us explain things better to buyers when we go to sell. We are not guessing anymore—we've got proof of how the building is managed."
Condo market weakens across the country

While Florida real estate agents hope these new provisions boost the state's condo market, condo sales have slumped nationwide, declining about 9.8% in October.

Condo prices are also down across the entire country.

Intercontinental Exchange, a financial technology and data company, reports that condo prices declined 1.9% year over year in September and October, the sharpest drop recorded since 2012.

"Condos have proven to be more volatile than single-family homes and have borne the brunt of the market slowdown nationwide," says Berner. "Widespread economic uncertainty has diminished the demand for vacation condo homes, and the growing costs of condo association membership has led many buyers to prefer single-family homes for their primary residences."

Do your due diligence

Another new provision of the Florida law gives condo buyers seven days instead of three to cancel a deal, giving them more time to review important documents before committing to the purchase.

"There are usually hundreds of pages of documents to review, and I think seven days is an appropriate diligence period to review and get any questions answered," says real estate agent Shane Vanderson, of Engel & Völkers of South Tampa.

During that week, Cummings recommends that prospective buyers have those documents checked out before signing on the dotted line.

"Have them reviewed by a CPA and attorney versed in Florida condo law with an eye toward determining the solvency of the association and the likelihood of future special assessments, which can range as high as six figures in buildings with deferred maintenance," he advises.