Florida special assessments: triggers, process, buyer protection

Legal definition

• F.S. §718.103(24) defines special assessment as "any assessment levied against a unit owner other than the assessment required by a budget adopted annually."
• Separate from regular budgeted dues (which cover anticipated expenses).
• Levied on all units/lots prorated by their share (percentage interest in common elements, defined in the Declaration).

Typical triggers

• Roof replacement not covered by reserves.
• Structural repairs from SB 4-D milestone inspection or preventive review.
• Hurricane damage beyond the master policy deductible (typically 5-10% of insured building value, can be hundreds of thousands $).
• Required modernization (e.g., ADA upgrades, fire code).
• Litigation (e.g., suit against developer, defense against lawsuit).
• Reserve underfunding before SB 4-D; still common in 2025-2026 as associations catch up.

Adoption process (condo F.S. §718.112)

1. Board vote at a regular or special meeting.
2. Notice to units: minimum 14 days before adoption meeting (F.S. §718.112(2)(c)). The notice must list "special assessment" on the agenda.
3. Member vote required if total annual assessments (regular + special) exceed 115% of prior budget; otherwise the board can adopt alone.
4. Notice to owners of the adopted special assessment: amount, payment schedule, reason (F.S. §718.112(2)(c)2).
5. Due date typically: lump sum or 12–36 month installment plan.

Non-payment consequences

• Association lien: F.S. §718.116(5) authorizes an automatic lien on the unit as soon as the assessment is unpaid. Lien recorded in public records.
• Foreclosure: after 90 days delinquent, the association may bring judicial foreclosure of its lien (F.S. §718.116(6)). Court can order forced sale.
• Interest and legal fees: statutory 18% annual rate + legal fees.
• Association lien has priority over other claims except previously recorded mortgage and property taxes.

Surfside case: what the tragedy taught

On June 24, 2021, the Champlain Towers South collapse in Surfside (Miami-Dade) killed 98. The association had voted $15M in assessments 2 months before the collapse to repair structural damage identified as early as 2018. The FL legislature reacted with SB 4-D (2022) and SB 154 (2023). See dedicated milestone article.

Practical consequence for buyers: any condo 30+ years old (or 25+ coastal) must now produce its milestone report and SIRS before sale. A buyer who finds out 2 years post-purchase about a $100K-per-unit assessment has limited recourse if they didn't demand due diligence.

Special assessment at sale

Critical question: who pays if an assessment is voted during the transaction?

• Standard FAR/BAR contract says seller pays any assessment voted before closing. Buyer pays any post-closing vote.
• In the Estoppel Letter (F.S. §718.116(8)), the association must disclose any voted or discussed assessment. If it omits, the buyer may be protected.
• For assessments announced but not yet voted: gray zone. Attorneys negotiate case-by-case.
• Canadian seller with FIRPTA: if a big assessment cuts net price, 15% FIRPTA applies on gross (check I-8288-B for reduction).

Buyer protections

• Request a current Estoppel Letter (F.S. §718.116(8)): shows seller's account status and voted assessments.
• Read the board minutes for the past 12–24 months (F.S. §718.111(12)) — reveals upcoming work discussions.
• Request current and proposed budget and the SIRS if condo is 3+ stories.
• Check reserve fund balance (often ≥ 50% coverage is healthy; < 20% = red flag).
• Demand written confirmation: "no special assessment voted or discussed" — though this assurance has limits.
• Include a condo docs review contingency in the contract (FAR/BAR offers this checkbox).

Formulaires officiels et pages de référence

• F.S. §718.116 — Assessments and liens
• F.S. §718.112 — Bylaws
• F.S. §720.3085 — HOA assessments and lien procedure
• DBPR — Condominium Information & Resources