Condo Law Changes
New Condo Reforms Become Law
The Florida Legislature passed new condominium life/safety reforms during the May 2022 special session.
Florida lawmakers met at the end of May 2022, for a special session that included condominium life/safety reforms. The call for condominium reform was In response to the 2021 Surfside tragedy that killed 98 people.
As a result of the special session, lawmakers passed, and the governor signed Senate Bill 4D. This bill provides an overhaul of the high-rise inspection law, requires more frequent recertification of safety standards, and mandates that condo boards build up reserves so they can make needed repairs. Changes in the bill include:
- Creates a statewide "milestone inspection" requirement for condominiums and cooperative buildings that are three stories or higher 30 years after initial occupancy, and 25 years after initial occupancy for buildings located within three miles of the coast.
- Requires inspections every 10 years after a building's initial "phase 1" inspection.
- Requires an additional, more intensive inspection, or a "phase 2" inspection, if a building's initial inspection reveals substantial structural deterioration.
- Beginning in 2024, condo associations are required to conduct a structural integrity reserve study at least every ten years and prevents needed reserves from being waived.
Florida Realtors’ Riders Being Revised
The condominium and cooperative riders will be updated on March 20 due to changes in the law. The revisions are limited and address new documents buyers of certain condominiums and cooperatives are entitled to receive from sellers. The redline is in the button below:
ORLANDO, Fla. – Following the Surfside condominium tragedy, the Florida Legislature passed new laws overseeing condominium and cooperative safety, including standards for inspections and reserve studies. Part of that overall plan includes new documents some buyers are entitled to receive from sellers.
What’s changing?
At this time, changes will take place on March 20, 2023. Documents changing include:
- Rider A. Condominium Rider to Florida Realtors/Florida Bar Residential Contract for Sale and Purchase (and its AS IS companion)
- Addendum F. Condominium Association to Contract for Residential Sale and Purchase (CRSP)
- Addendum to Contract for Sale and Purchase of Cooperative
Important note: Not all sellers will be required to provide these documents to buyers because a) the law (referenced in the revisions) only applies to certain associations, and b) if the seller’s association has not yet obtained the inspection and/or study, they still have 23 months to do so.
What are ‘Milestone Inspection’ and a “structural integrity reserve study”?
Milestone Inspection: It’s a structural inspection conducted for life safety purposes. Generally, the requirement for associations to obtain a milestone inspection applies to condominium and cooperative buildings three stories or higher which have been occupied 30 years or more or, if located within three miles of Florida’s coastline, occupied 25 years or more.
Structural integrity reserve study: It’s a study of reserve funds required for future major repairs and replacement of the common areas which must be conducted for condo and cooperative association buildings that are three stories or higher.
Are other forms being created or updated?
Florida Realtors will create a new disclosure form to reference these latest changes to the law. Additionally, a section will be added to the existing Seller’s Property Disclosure-Condominiums (SPDC) which addresses these changes.
The language in all forms noted above will be the same, with the cooperative statutory citations being the only difference. The language informs buyers that they now have access to two new documents. The first is the inspector-prepared summary of the Milestone Inspection of the condominium or cooperative. The second is a structural integrity reserve study or a statement that the study has not been completed.
Updates: Realtors/Florida Bar Residential & AS IS Contracts
A detailed look at the 2021 changes to the Florida Realtors/Florida Bar Residential Contract for Sale and Purchase, the “AS IS” version, and 10 Riders.
Revisions to the Florida Realtors/Florida Bar Contract for Sale and Purchase (FR/Bar) – both the AS-IS and the Residential – have recently been approved and contain numerous changes.
In addition, seven (7) Riders have been updated and three (3) new Riders were created.
These revisions will replace the current versions of the contracts and riders on November 1.
WEBINAR POWERPOINT: Click here to download the PowerPoint.
REGARDING REDLINES: Any text on the redline documents below that is not BLACK reflects a change. The color of the text is of no consequence.
AS-IS Residential Contract for Sale and Purchase
Webinar: Changes to 2021 Residential Contract Financing Explained
This webinar, recorded October 19, 2021, features members of Florida Realtors® Law and Policy Department exclusively discussing Paragraph 8(b) of the 2021 updates to the Florida Realtors/Florida Bar Residential Contract.
Residential Contract for Sale and Purchase
New riders
- CR-6 Rider I Mold Inspection (used with standard Residential Contract for Sale and Purchase, not AS IS)
- CR-6 Rider DD Seasonal/Vacation Rental
- CR-6 Rider EE PACE
CR-6 B. Homeowners Association HOA - Community Disclosure
CR-6 E. FHA - VA
CR-6 L. Right to Inspect and Right to Cancel
CR-6 T. Pre-Closing Occupancy By Buyer
CR-6 U. Post-Closing Occupancy By Seller
CR-6 V. Sale Of Buyers Property
CR-6 W. Back-Up Contract
FAQs: Florida Realtors/Florida Bar Residential Contract Updates
Florida Realtors attorneys answer frequently asked questions about the changes to the Florida Realtors/Florida Bar Residential Contracts that launch Nov. 1, 2021.
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