Understanding the Revised Condominium Disclosure Requirements in Florida

Florida's condominium market is dynamic and heavily regulated to protect buyers, sellers, and associations. Recent legislative changes have updated the disclosure requirements for condominium sales, particularly in resales by non-developers. These revisions stem from efforts to enhance transparency following high-profile incidents like the Surfside collapse, ensuring prospective buyers receive comprehensive information about a condo's financial health, structural integrity, and governance. In this article, I'll break down the key updates to Florida Statute § 718.503, explain their implications, and offer practical guidance for navigating these requirements in your next transaction.

Background on Florida Condominium Disclosures

Under Florida law, sellers of condominium units must provide specific disclosures to buyers before closing. Section 718.503 distinguishes between developer sales (new units) and non-developer sales (resales). For resales—the focus of most agent-referred transactions—the statute mandates a "Non-Developer Disclosure Prior to Sale of Residential Condominiums." This disclosure must be included in conspicuous type in every resale contract and informs buyers of their rights, including a rescission period during which they can cancel without penalty.

The disclosure ensures buyers receive essential documents, such as the declaration of condominium, bylaws, rules, recent financial reports, and details on any ongoing assessments or litigation. Failure to comply can render the contract voidable at the buyer's option prior to closing, as explicitly stated in § 718.503(2)(e). This provision underscores the legislature's emphasis on buyer protection, and sellers and agents must prioritize full compliance to avoid disruptions or disputes.

Key Revisions from 2024 Legislation (HB 1021)

The most significant updates came via House Bill 1021, signed into law in 2024 and largely effective July 1, 2024, with some provisions kicking in on October 1, 2024. These changes were part of a broader push for condominium safety and financial accountability. Here's what sellers and agents need to know:

Expanded Financial Disclosures (§ 718.503(2)(a))

Non-developer sellers must now provide, at their expense, the financial information required by § 718.111, which includes the most recent annual financial report and annual budget. This amendment clarifies and cross-references enhanced reporting requirements under § 718.111, detailing special assessments, lines of credit, loans, and reserves. The goal is to give buyers a clear picture of the association's fiscal stability, including any funding shortfalls for maintenance or repairs. For example, if the association has deferred reserves for structural elements like roofs or foundations, this must be highlighted. Additionally, HB 1021 adds specific new documents to the required list: the inspector-prepared summary of the milestone inspection report (if applicable), the turnover inspection report for inspections on or after July 1, 2023, and the association's most recent structural integrity reserve study (SIRS) or a statement that the association has not completed a SIRS.

Disclosures for Condos in Multi-Parcel or Partial Buildings (§ 718.503(2)(c))

If the condo is part of a larger building or multiple-parcel development (common in mixed-use properties), sellers must disclose specifics about shared facilities. This includes which portions are included or excluded, who maintains them, how expenses are apportioned, and remedies for non-payment. These details must be attached to the contract, preventing surprises post-closing about shared costs for amenities like pools or elevators.

Integration with Structural Integrity Reserve Studies (SIRS)

HB 1021 directly amends § 718.503(2)(a) to require sellers to provide the association's most recent SIRS or a statement that the association has not completed a SIRS, as a mandatory document at the seller's expense. This ties directly to the SIRS mandate under § 718.112(2)(g), where associations for buildings three stories or higher must complete a SIRS by the applicable deadline. Buyers should scrutinize whether the association has complied, as inadequate reserves could lead to hefty special assessments.

These updates apply to all residential condo resales and emphasize proactive disclosure. Agents should advise sellers to obtain these documents early from the association, as delays can jeopardize timelines.

Further Updates from 2025 Legislation (HB 913)

Building on the 2024 reforms, House Bill 913 was signed by Governor DeSantis in June 2025 and took effect July 1, 2025. This bill addresses feedback from stakeholders, including real estate professionals, by streamlining processes while maintaining protections. Relevant changes to § 718.503 include:

Extended Rescission Period for Resales

Previously, buyers in resales had a 3-day rescission period after receiving disclosures. HB 913 extends this to 7 days (excluding weekends and holidays), giving buyers more time to review documents like financial statements and SIRS reports. This applies to contracts executed on or after July 1, 2025. Sellers should factor this into closing schedules, as buyers can cancel by delivering written notice within the window.

Language Modernization (§ 718.503(2))

The statute's wording has been updated for clarity and accessibility. Formal terms like "prior to" have been replaced with "before," and "shall" with "must." While subtle, these changes make the disclosure more readable, reducing the risk of misunderstandings. The required conspicuous-type statement now reads more conversationally but retains its legal weight

Extension of SIRS Deadlines

HB 913 pushes the deadline for completing SIRS from December 31, 2024, to December 31, 2025, for associations existing on or before July 1, 2022, that are unit-owner controlled. This directly affects disclosures, as buyers must be informed if a SIRS is pending or incomplete. Associations can temporarily pause reserve funding under specific conditions (e.g., after updating SIRS and with member approval via vote), but disclosures must reflect any such decisions, and pauses are subject to strict compliance steps to avoid invalidation.

Florida Realtors has updated their forms (e.g., CR-6 Rider and the Receipt of Condo/Coop Docs) to incorporate these changes, effective late 2024 and refined in early 2025. Using outdated forms could invalidate a contract, so always verify you're on the latest version.

Practical Implications and Best Practices

These revisions balance buyer protections with practical realities for sellers and agents. For sellers, the added disclosures mean higher upfront costs (e.g., obtaining financial reports) but reduce post-closing disputes. Buyers gain better insight into potential liabilities, like looming assessments that could affect affordability. Non-compliance can lead to voidable contracts, delays, or litigation, including potential claims beyond voidability such as fraud or misrepresentation if disclosures are incomplete or misleading.

To Ensure Compliance for Sellers:

Gather all required documents early—declaration, bylaws, financials, SIRS or related statements, milestone inspection summaries, turnover reports, and any other mandated items. If selling in a multi-parcel condo, prepare a detailed summary of shared expenses. Disclose known issues, such as ongoing litigation or deferred maintenance, to avoid claims of concealment. Engage an attorney to review the disclosure package for completeness.

To Ensure Compliance for Buyers:

Use the extended rescission period wisely. Review financials for red flags like underfunded reserves or large loans. Consider hiring an inspector familiar with condo-specific issues, and consult an attorney if the disclosures raise concerns.

To Ensure Compliance for Agents:

Educate clients on these changes to set expectations. Recommend title companies experienced in condo closings, as they can verify compliance during the title commitment process. In contracts, specify who pays for disclosures (typically the seller), include contingencies for reviewing updates, and incorporate protective clauses addressing SIRS compliance and potential assessments.

Navigating Challenges in Today's Market

In a post-Surfside era, these disclosures are crucial for market stability. However, they can complicate sales in older buildings where associations struggle with SIRS compliance. Agents should partner with title insurers and attorneys to flag issues early—perhaps during the FR/BAR contract review phase. If a transaction involves financing, lenders may require additional endorsements on title policies to cover survey or assessment risks.

Ultimately, these changes promote informed decisions and long-term condo viability. If you're dealing with a condo sale, prioritize thorough documentation to avoid pitfalls.

If you have questions about a specific transaction or need assistance drafting compliant contracts, reach out to Munizzi Law Firm. We're here to provide the intelligent, practical solutions that keep your deals moving forward smoothly.