Buying a condo means buying more than the individual residence. You are also buying into a shared building, its financial obligations, its rules, and the decisions made by its association.
A beautiful unit, an impressive view and a competitive price are important, but they do not tell you whether the building is well run, adequately funded, facing major repairs, or subject to restrictions that could affect how you enjoy living there or its future resale value.
Some documents are provided after you are under contract, but it is smart to review as much as possible before making an offer, especially in an older building or a higher priced purchase. The right information can affect the price you offer, the terms you request, or whether you proceed at all.
Here are the condo documents and questions I would focus on.
Prefer a quick overview? Watch this short video on the condo documents to review before making an offer.
1. The condominium declaration and governing documents
Start with the documents that explain how the condominium operates:
- Declaration of Condominium
- Articles of Incorporation
- Bylaws
- Rules and regulations
- Amendments to any of the above
These documents set out what you own, what the association controls, and what you are permitted, or required, to do.
They can answer practical questions such as:
- Are pets allowed? Are there breed, size or number limits?
- Can you lease the unit, and is there a minimum lease period?
- Can you rent a room to a roommate in your unit?
- Is association approval required before a sale or lease?
- Are there parking or vehicle restrictions? (think pickup trucks, full size SUVs and motorcycles)
- Can you add an EV charging station?
- What are the rules for renovations, changing flooring, installing hurricane protection, or making other alterations?
- Are there use restrictions that would not work for your lifestyle?
Do not assume that a building’s current practices will tell you the full story. A neighbor may rent their unit, for example, but their lease could be grandfathered or subject to different rules. Read the written restrictions.
2. The current budget
The association budget shows expected income and expenses for the year. It is one of the clearest ways to understand whether the monthly condo fee appears realistic.
Review:
- Total annual income from condo fees
- Operating expenses
- Insurance costs and deductibles
- Management fees
- Utilities and services included in the fee
- Contributions to reserves, are reserves in line with the latest reserve study
- Any budgeted repairs or capital projects
- Whether the association is running a surplus or relying on one time income
A low condo fee is not automatically good news. It may mean the building is efficient and well managed. It can also mean that reserves are underfunded, insurance costs have not yet caught up, special assessments are planned, or future increases are likely.
The better question is whether the fee is sufficient for the building’s age, condition, amenities and anticipated needs.
3. Financial statements and reserve information
The budget shows the plan. Financial statements show what has actually happened.
Ask for the most recent financial statements, balance sheet, income and expense statement, and reserve schedule. In particular, look at:
- Cash on hand
- Reserve balances
- Whether reserve funds are separately identified
- Unpaid owner assessments or delinquent condo fees
- Loans or lines of credit
- Large payables or unexpected expenses
- Whether operating expenses are consistently exceeding income
Reserves are money set aside for major common element repairs and replacements, such as roofing, painting, elevators, plumbing, paving, structural work and building systems. Read more about condo reserves here →
A healthy reserve balance does not guarantee there will never be a special assessment. But weak reserves can mean a higher chance that owners will be asked to contribute additional money when significant work is needed. Read more about special assessments here →
For many Florida condo buyers, this is now one of the most important parts of the due diligence process.
4. Board meeting minutes
Board and membership meeting minutes can be more revealing than the glossy brochure or listing description.
Review at least the past 12 months, and preferably 24 months where available. Look for discussion of:
- Special assessments
- Insurance renewals and premium increases
- Structural concerns such as water intrusion, roof issues or concrete repairs
- Major projects such as elevators, plumbing, electrical or HVAC projects
- Litigation or disputes, is there a potential future major liability?
- Reserve funding, how are the reserves being funded – expected to be adequate or a shortfall?
- Rules being changed or enforced
- Management company concerns
- Owner complaints or recurring maintenance problems
- Planned capital improvements and how they will be paid for. For example, beautification of the entrance to the property.
Minutes are not always polished or easy to read. That is precisely why they matter. They often show what is being discussed before it appears in a formal assessment notice or budget increase.
5. Special assessments – current, proposed and possible
Ask directly whether there are:
- Current special assessments
- Approved assessments that have not yet been billed
- Proposed assessments
- Major projects under discussion
- Engineering findings or repair recommendations that could lead to future costs
If there is an assessment, clarify the total amount, the remaining balance, the payment schedule and who will pay it at closing. That point should be addressed clearly in your contract. A seller agreeing to pay an assessment is not the same as an assessment simply disappearing; you need to know whether the obligation is paid in full before closing or whether future installments remain.
The Condo Rider in the standard As Is contract has a section to disclose special assessments, and the Seller’s Property Disclosure gives the Seller the opportunity to disclose some known issues. These are great starting points, but don’t rely totally on what the Seller discloses. These disclosures can be incomplete or incorrect – often genuine mistakes can be made when flling them out. It’s essential you do your own diligence here and get access to the right documentation for review. The Condo Rider also has a section on how to handle Special Assessments during the sale and who is responsible for paying what.
Even when no assessment has been formally approved, a building may have work on the horizon. That is why reviewing minutes, inspections and reserve information together is so important.
6. Inspection reports and structural documentation
For older condos, waterfront buildings and buildings with significant amenities, ask whether there are recent reports relating to:
- Milestone inspections and engineering reports
- Reserve studies
- Concrete restoration
- Roof condition
- Plumbing or electrical systems
- Elevators
- Fire and safety systems
Not every report signals a problem. In fact, a professionally managed building that identifies work early and makes a realistic plan to complete it can be a positive sign.
What matters is understanding the condition of the building, the scope of any recommended work, how it will be funded, and whether the association has a credible plan.
7. Insurance information
Insurance has become a major driver of condo costs in Florida. Review the association’s master insurance policy information, including:
- Property coverage limits
- Windstorm and hurricane coverage
- Deductibles
- Liability coverage
- Whether coverage has changed recently
- Whether the association has had claims or difficulty obtaining coverage
You should also speak with your insurance agent early. The association policy does not insure everything inside your unit, and your lender may require specific coverage. Read more about condo insurance here →
A large hurricane deductible can be particularly important. Understand how it could be handled if the building suffers a major storm loss.
8. Rental, pet and lifestyle restrictions
These are often the documents buyers read too late.
If you plan to rent the unit at any point, whether immediately, seasonally or years from now, confirm the rental rules before you make an offer. Pay close attention to:
- Minimum rental period
- Number of permitted leases per year
- Waiting periods before an owner may lease
- Application or approval requirements
- Tenant fees
- Short term rental restrictions
- Whether the building has rental caps
Also confirm pet restrictions, vehicle rules, smoking policies, move in procedures and any limits on using the unit as a second home, investment property or business address.
The right building for a full time owner may not be the right building for a seasonal owner or investor.
9. Litigation, claims and legal issues
Ask whether the association is involved in any current or pending litigation, and whether there are significant insurance claims, construction disputes or contractor issues.
Some litigation is routine and may have little practical impact. Other cases can affect lending, insurance, association finances and resale value.
This is not a reason to panic, but it is a reason to understand the facts before committing.
10. The estoppel certificate
Closer to closing, the estoppel certificate confirms important unit specific information, including amounts owed to the association and whether there are outstanding assessments or violations. The title company will usually order this from the management company. They will typicall settle any balances owed from the seller’s proceeds, for example, unpaid fines or late fees imposed by the association.
It is an essential closing document, but it should not be your first look at the association’s finances or building condition. By the time you get to closing, you should already have a clear understanding of the building you are buying into.
Do not review the documents in isolation
A single document rarely gives the full picture.
For example, a reserve balance may look healthy until you read meeting minutes showing a large concrete project under discussion. A low monthly fee may look attractive until the insurance renewal, deferred maintenance and lack of reserve contributions are considered together.
That is why I help condo buyers compare the documents with the building’s age, condition, amenities, recent sales, likely ownership costs and alternatives in the market.
The goal is not to find a “perfect” condo building. Very few exist. The goal is to understand any risks, costs and tradeoffs clearly enough to make a confident decision.
Before you make an offer
Before writing an offer on a condo, I recommend that buyers ask:
- What is included in the monthly fee?
- How has the fee changed over the past few years?
- Are reserves adequate for the building’s known needs?
- Are any assessments current, approved or being discussed?
- What repairs or major projects are planned?
- Are there insurance or deductible concerns?
- Do the rules fit my plans and my lifestyle?
- Does the price reflect the unit’s condition, view, floor plan, association finances and likely future costs?
A condo can be an excellent purchase. But the unit is only half the decision, the building matters just as much.
See the Property Briefing for more practical advice on buying a home →