On July 1, 2025, significant updates to Florida’s condominium laws took effect with the signing of House Bill 913, also referred to as “Condo Laws 3.0.” These changes, designed to address the ongoing “condo crisis,” aim to bring clarity and stability to the real estate market. In a recent webinar hosted by Ryan Pool, founder of RealTrade, and James Brown, founder of New Path Title, and a seasoned real estate attorney, key updates to the condo laws and their implications for real estate agents were discussed. Below is a comprehensive overview of the changes, practical insights for agents, and a look at the current condo market in West Palm Beach.
The new legislation marks the third revision to the condo rider in less than a year and the fourth in two years, reflecting the rapid evolution of regulations in response to market challenges. James Brown emphasized that these changes are a step toward normalizing the condo market, which has been grappling with significant issues, particularly around maintenance and reserve funding.
Extended Structural Integrity Reserve Study (SIRS) Deadline
The deadline for condos to complete their Structural Integrity Reserve Study (SIRS) has been extended to December 31, 2025, from the previous December 31, 2024. This extension provides relief to approximately 50-60% of condos that were not yet in compliance. The SIRS requires an inspection to identify necessary maintenance costs, which must now be budgeted annually, eliminating the ability to defer expenses as allowed under the old laws.
Old Law vs. New Law: Previously, unit owners could vote to defer maintenance expenses (e.g., for a roof replacement) to a future date. Under the new law, condos must set aside funds each year based on a cost study, ensuring proactive maintenance. This shift, dubbed the “no more kicking the can down the road” rule, aims to prevent future financial burdens on unit owners.
Seven-Day Document Inspection Period
Buyers now have a seven-day period (excluding weekends and federal holidays) to review all condominium documents, extending the previous three-day period. This includes declarations, bylaws, articles of incorporation, budgets, financials, meeting notices, agendas, milestone inspections, and SIRS reports. If any document, such as the Frequently Asked Questions (FAQ) form, is missing, the seven-day period restarts upon receipt of the final document. Importantly, these voidability rights cannot be waived, ensuring buyers have ample time to assess the condo’s financial and structural health.
Condo Document Website Requirement
Condominiums with 25 or more units (down from 150 units) must now publish key documents on a secure website accessible with a username and password. These documents include declarations, bylaws, budgets, financials, meeting notices, agendas, milestone inspections, and SIRS reports. This requirement, effective January 1, 2026, applies to 92% of condos and aims to improve transparency and access to critical information.
Updated Condo Rider Form (06/2025, CR7 Rev6 2025)
The new condo rider form, identifiable by “06/2025” at the bottom, includes several updates to streamline transactions:
Association Contact Information: Sellers must now provide contact details for the condo association and management company at the top of the form, simplifying communication.
Association Approval Process: If approval is required, the seller initiates the process, and both buyer and seller must diligently pursue it, including making personal appearances if necessary. The contract is contingent on approval within five days before closing, unless otherwise specified.
Right of First Refusal: The form clarifies whether the association or its members have a right of first refusal, reducing past confusion. If exercised, the contract terminates, and the buyer’s deposit is refunded.
Assessments and Violations: Sellers are responsible for paying all regular and special assessments, fines, and resolving violations (e.g., open permits) before closing. If special assessments can be paid in installments and the association allows the buyer to assume them, the buyer may take on post-closing payments, but this must be explicitly elected in the contract.
Litigation Disclosure: Sellers must disclose any pending or anticipated litigation, such as fire sprinkler retrofitting decisions, to inform buyers of potential risks.
Nested Communities: For condos within a master or homeowners association, sellers must complete additional disclosures (e.g., Rider B for homeowners associations). This ensures transparency in complex community structures.
James Brown emphasized that agents must familiarize themselves with the new condo rider form to avoid costly mistakes. Here are key takeaways for practitioners:
Master the New Form: Forget the old form and focus on the 06/2025 condo rider. Its clarity reduces ambiguity around special assessments and rights of first refusal, which have historically caused confusion.
Document Delivery: Ensure all required documents, including FAQs, are delivered to buyers promptly. Missing documents can extend the seven-day voidability period, potentially delaying or derailing transactions.
Transparency with Clients: Be upfront about challenges in obtaining documents like FAQs, which associations may not readily provide. Communicate openly with clients about compliance issues and seek their direction on how to proceed.
Title and Escrow Practices: To minimize cyber fraud risks (over $50 million monthly in U.S. real estate transactions), use the same party for escrow and closing services.
Educate Buyers and Sellers: Guide clients toward condos with manageable assessments and away from those with heavy financial burdens. Over 80% of buyers use platforms like Zillow, which may not distinguish between condos with and without significant assessments, so education is critical.
James also cautioned against over-relying on AI tools for contract review, as they can provide erroneous answers. Instead, leverage tools like Title Advance for quick title reports and consult with experienced professionals for complex issues.
The webinar also provided a snapshot of the West Palm Beach condo market as of March 2025, highlighting trends that agents should consider:
Median Sale Price: $412,500, reflecting a softening market.
Inventory: 801 units, up 21% from the previous year, with a supply of 12.3 months (up from 7.8 months).
Sales Activity: 77 sales closed in March, up 6.9% year-over-year, but new pending sales dropped 22% to 83.
Cash Purchases: Nearly 50% of buyers are paying all cash, leading the nation.
Days on Market: Increasing significantly, indicating a buyer’s market.
Luxury Segment: High-end properties, like a La Clara penthouse sold for $18.7 million, are driving price per square foot to $538–$968, with some exceeding $1,000.
The influx of wealthy buyers, including billionaires relocating to West Palm Beach, is fueling luxury development (e.g., Steve Ross’s Flaggler House project with units starting at $2,000 per square foot). This creates a trickle-down effect, bringing ancillary professionals (e.g., doctors, lawyers) and increasing demand for workforce housing, such as the Northwood project.
The new laws present both challenges and opportunities for agents:
Challenges:
Document Compliance: Obtaining all required documents, especially FAQs, can be difficult, as many associations are slow to comply.
Increased Complexity: The volume of documents (e.g., 12 months of board and member meeting minutes and agendas) adds time and effort to transactions.
Financing Hurdles: Condos without completed SIRS or milestone inspections may struggle to secure insurance, making them less lendable. Portfolio lenders may offer solutions, but scrutiny varies.
Estoppel Fees: Fees for estoppel certificates can be substantial, with some reaching $650 or more in complex communities with multiple associations.
Opportunities:
Transparency Advantage: The extended SIRS deadline and document access requirements provide buyers with predictable expense forecasts, unlike single-family homes.
Negotiation Leverage: Softening prices (e.g., condos selling for $265,000–$370,000, down from $320,000–$450,000) offer opportunities for buyers to secure deals below recent trade values.
Commission Strategies: Agents may consider retainers or higher commissions to offset the increased workload of managing condo transactions.
To navigate these changes effectively, agents should:
Study the New Condo Rider: Memorize the 06/2025 form to streamline transactions and avoid errors.
Leverage Resources: Use tools like Title Advance for quick title reports and consult with experts like James Brown (text 561-307-0885 or visit New Path Title for 24/7 support).
Stay Informed: Watch for updates, such as the promised checklist and redlined condo rider comparison in the next webinar session. Follow industry reports, like those from Craig Studnicky of ISG, for market insights.
Prepare Clients: Educate buyers and sellers about the financial and structural implications of condo ownership, especially in older buildings (20+ years) facing compliance challenges.
The new Florida condo laws effective July 1, 2025, mark a significant step toward addressing the condo crisis by enhancing transparency and financial accountability. While the changes increase the workload for agents, they also provide clearer guidelines and opportunities to secure better deals for clients. By mastering the new condo rider, leveraging professional resources, and staying proactive, agents can navigate this evolving landscape with confidence.
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Got questions? Text James at New Path Title’s 24/7 attorney support (561) 307-0885 or message me (Ryan Poole) on RealTrade. Here’s to your next big win!