Learn what to ask when you buy a condo in Florida. Here in Tampa Bay there are specific questions to ask before buying a condo that we’ll explore. Condominiums are operated under Chapter 718 of the Florida Statutes, and are not the same as a Homeowners Association.
Questions to ask before you buy a condo include:

• Can the condo be financed?
• What are the monthly condo dues, and what do the condo fees cover? Are the condo reserves adequately funded to cover upcoming maintenance needs?
• Are there any condo special assessments being considered or recently passed?
• What about parking? 

Is financing possible?

One of the first things you’re going to want to understand the answer to is basically how you can pay for it. Now, if you are using cash, you’re probably good to go, yet you still might want to understand whether the building’s actually eligible for financing as it’s currently a changing situation and it may affect your property value in the future. 

Surfside Condo Collapse- the impact on condo financing

New changes have come into effect after the Surfside condo collapse. Fannie Mae and Fred Mac are now requesting homeowner associations, condo associations, rather fill out more detailed information about property conditions after that Champlain Tower condo collapse that killed 98 people. 

Fannie and Fred rightfully want to know if America’s condo complexes have deferred maintenance or structural safety issues. To that end the agencies on January 1st 2022 and February 28th, instituted new questionnaires for certain applicants regarding the structural integrity of the condo community and whether any code violations are anticipated. The requirements are designed to help ensure that residential buildings with that aging infrastructure are safer and the condos and co-ops that need critical repairs have a plan to do so. 

Who is responsible for the answers on the form?

The challenge right now is that the condo boards don’t know what to put on the form and don’t want to be held liable. So some are deciding not to fill it out,  resulting in buildings that aren’t eligible for traditional financing. 

Financing approval also depends on why you are actually buying the unit- for example is it for a primary residence, second home investment, and how much money are you putting down?

Monthly Condo Fees

Other questions to ask when buying a condo in Florida include finding out what’s included in the monthly condo fee. Every single building is different in the way they manage the building budget. It’s really important that you understand what’s included, so you get no suprizes later!!

The fee is directly tied to the anticipated cost of providing the included services and they create a budget every year. Some go all the way up to including cable and internet packages and management services and concierge services. 

Other buildings have a lower budget because they don’t include all of those additional things. If you’re comparing two buildings, you can really compare apple to apples and understand what you’re getting for your money.

Condo Special Assessments

Ask if there are any upcoming or pending assessments? You can typically go directly to the management company and ask.

Maybe it’s been discussed that they’re going to do some type of assessment in the future, and maybe the seller isn’t aware of it. Some communities never do assessments as there could be plenty of money already in the plan, with reserves to take care of any projects. Other communities charge the bare minimum and hit residents with Special Assessments when a project comes due, like re-roofing, so find out how they handle it. Remember- because we’re close to the water in Tampa Bay, salt water does cause corrosion and degradation. that causes wear and tear, needing ongoing maintenance in developments on the water.

Condo Rules and Regulations

Before buying a condo in Florida, find out about the rules and regulations of the building. 

• Are pets allowed? 
• Can you rent the property? If you are allowed rent it, can you rent it in the way that you were intending? So never assume that you can do a short term rental because most communities have regulations around that. And a lot of them just don’t allow it. 
• What vehicles are welcome?
• Can guests use the pool?

There’s a lot of little nuances that go into every single building’s rules and regulations. So please, please, please read them. It’s not something that your agent can do for you. 

What about Parking?

Parking’s a huge commodity in condo communities and buildings- parking spaces are valued features. So make sure you know, what type of parking is or isn’t included. 

• Do you get a valet space? 
• Is it deeded? 
• Is it assigned or is it just open parking? 

Some parking is usually in the open, other spaces may be undercover- either under car ports or underneath the building, which is really nice in the Tampa Bay summer heat. 

How Is the Building Managed?

Some buildings are self-managed, but most do use a management company. They often manage a lot of other buildings, and there’s not necessarily someone on site. Some have managers on site who manage the day to day business of the building, so if that’s important to you, make sure to ask upfront how is the building managed? And don’t assume.

Condominium styles ranges from tower blocks, to garden style, and neighboring developments can be completely different. That means you may see some neighborhoods and not be able to tell whether the ownership is Fee Simple, like a house, or Condominium ownership. Know what things to look at. Your trusted agent will also guide you with all the steps.

Video times:

0:00 What to ask when buying a condo in Florida.

0:10 Financing versus cash.

0:30 Champlain Towers- Surfside condo collapse and inspections.

1:30 Aging condo infrastructure in Florida and condo boards.

2:05 Condo fees- What’s included?

2:30 Condo budgets.

2:50 Condo Special Assessments.

3:28 Condo rules – pets, rentals and more.

4:00 Parking?

4:25 Condo Management companies.

Summary

Before buying a condo in Florida, you have work to be done once you have the condo under contract to be sure it’s a good fit, such as getting a great home inspection.

Your agent will be able to help you with each step, and help you connect with the right professionals to advise you. There are a lot of people in a real estate transaction and each person is important- understanding how they can help you will make your transaction easier. If you need help- reach out!