Florida Statutes Chapter 720 vs. 718: Understanding HOA vs. Condo Law

Florida’s community association laws fall under two separate statutes, and understanding the distinction is essential for board members, property managers, and residents. Chapter 720 governs homeowners’ associations (HOAs), while Chapter 718 applies to condominium associations. Each statute sets different requirements for rule enforcement, budgeting, and governance. This blog outlines the key legal differences and how they affect day-to-day operations across Florida communities.

What Is Chapter 720 and When Does It Apply?

Chapter 720 of the Florida Statutes regulates homeowners’ associations, which typically govern subdivisions or planned communities with individually owned lots. HOAs formed after 2000 must comply with this statute, including its notice, enforcement, and disclosure requirements. The law addresses both operational and structural aspects of association governance. Many HOAs manage common areas but not the structures on each lot. Chapter 720 tends to give owners more direct control over their own property compared to condominiums.

While associations created before 2000 may have slightly different rules, most active HOAs in Florida now fall under 720. These associations must register with the Department of Business and Professional Regulation and adhere to periodic reporting obligations. Legal compliance often centers around proper notice, access to records, and fair enforcement of covenants. Our firm helps HOA boards interpret and apply these obligations properly. Routine legal review ensures continued alignment with Chapter 720 requirements.

Key HOA elements under Chapter 720:

• Covers planned unit developments and subdivisions

• Applies to individually owned land parcels with shared areas

• Allows more independence in property use

• Emphasizes fair notice and open board processes

What Is Chapter 718 and How Is It Different?

Chapter 718 governs condominium associations in Florida and is more prescriptive than Chapter 720 in many areas. Condos involve shared ownership of common elements, with each owner holding title to an individual unit. The association is responsible for maintaining the building, shared infrastructure, and common spaces. Chapter 718 contains more detailed regulations regarding maintenance, reserves, insurance, and voting. Because of the shared nature of structures, the law requires tighter oversight of management decisions.

Condominium associations must also follow specific requirements for developer turnover, election procedures, and dispute resolution. These provisions aim to protect unit owners from financial mismanagement or improper board actions. Legal obligations under Chapter 718 tend to be stricter than those in Chapter 720. We help condo boards navigate these requirements while reducing exposure to claims. Understanding these differences is essential to avoiding unintended violations.

Chapter 718 covers:

• Shared structural ownership and common elements

• Unit-based property interest

• More detailed reserve and maintenance requirements

• Stricter voting and financial procedures

Structural and Property Ownership Differences Between HOAs and Condos

In an HOA, each homeowner generally owns both the structure and the land beneath it. Shared spaces like clubhouses or roads are maintained by the association but not jointly owned in the same way as in a condo. In contrast, condominium owners hold title only to the interior of their unit, with all other elements—roofs, exterior walls, plumbing systems—owned collectively. These differences affect everything from maintenance to insurance to dispute resolution.

The structural distinctions also change how repairs and renovations are handled. HOA homeowners are usually responsible for exterior upkeep, while condo owners rely on the board for building maintenance. Our attorneys help clarify who is responsible for what when ownership disputes arise. This is especially important during damage assessments or insurance claims. Misunderstanding ownership boundaries can lead to unnecessary conflict.

Key structural differences:

• HOA owners typically own land and building

• Condo owners own the interior of a unit only

• Condos involve joint ownership of infrastructure

• Maintenance responsibilities differ significantly

Board Powers and Responsibilities Under Each Statute

While both HOAs and condos operate under elected boards, the statutes grant them different powers and impose different obligations. HOA boards under Chapter 720 have more discretion in areas like enforcement, meeting scheduling, and committee formation. Condo boards under Chapter 718 are required to follow stricter rules for meeting notice, open access, and term limits. They also face more detailed requirements for adopting budgets, collecting assessments, and disclosing financials.

Both types of boards must act in good faith and follow their documents, but the degree of oversight and member rights varies. We help boards structure policies that meet statutory obligations and reduce liability. Legal review is especially important when adopting new rules or interpreting vague provisions. The more shared ownership a property has, the more regulated the board’s actions tend to be. Knowing the limits of board authority is key to compliance.

Comparison of board obligations:

• Condo boards face stricter procedural requirements

• HOAs may have more flexibility in rule adoption

• Voting, notice, and meeting rules differ between the two

• Legal review ensures board actions are enforceable

Member Rights and Voting Procedures in HOAs vs. Condos

Voting rights differ depending on whether the community falls under Chapter 720 or 718. Condo unit owners are entitled to weighted voting in some cases, especially if units vary in size or value. HOAs typically assign one vote per parcel, regardless of home size. Florida law also governs when elections must be held, how ballots are distributed, and what notice is required. Condo elections tend to involve more formalities and oversight due to higher shared ownership stakes.

Homeowners under Chapter 720 may face fewer rules on candidacy and voting methods, but boards must still ensure transparency. Legal missteps during elections can result in challenges or forced re-votes. We assist boards with updating election procedures and avoiding inconsistencies. Elections are one of the most contested areas in community law and require careful adherence to governing statutes. Member rights must be protected for any election result to be valid.

Election considerations include:

• Ballot rules and timelines

• Candidate qualifications and disclosures

• Use of proxies or mailed ballots

• Public vs. closed voting sessions

Maintenance Obligations: Who Handles What in Each Structure

In HOAs, the homeowner is generally responsible for maintaining their property, including the exterior, unless otherwise stated. The association usually handles common area landscaping, lighting, and road repairs. Condominiums shift a larger portion of maintenance responsibility to the board, including all exterior surfaces, structural components, and shared systems. This affects reserve planning and budgeting significantly.

Understanding these differences is vital when assessing whether a repair falls under personal or association responsibility. We assist boards in interpreting maintenance provisions and resolving conflicts over responsibility. Improper handling can lead to claims of neglect or overreach. Clarifying these boundaries in the governing documents helps reduce confusion. Boards should also update maintenance charts or matrices to reflect actual practice.

Maintenance breakdowns vary by type:

• HOAs: individual owners maintain structures

• Condos: boards handle building and infrastructure upkeep

• Reserve needs differ based on these obligations

Budgeting, Reserves, and Financial Reporting Requirements

Both Chapter 720 and Chapter 718 require associations to adopt annual budgets, but the level of detail and reserve requirements differ. Condo associations must include reserve accounts for roof replacement, paving, and other long-term capital expenses, and unit owners can only waive these reserves through a member vote. HOAs are not always required to maintain reserves, depending on the governing documents. As a result, condos often face more detailed budgeting and audit obligations.

Financial transparency is also more regulated in condo communities. Boards must provide detailed financial statements, including cash flow and reserve disclosures, to all unit owners. HOA requirements are more flexible unless the governing documents state otherwise. We help associations structure budgets that comply with applicable law and avoid member disputes. Budgeting errors are a common source of legal complaints.

Financial obligations comparison:

• Condos: mandatory reserve disclosures and funding

• HOAs: reserves required only if specified

• Financial statements must follow specific rules

• Budget adoption procedures differ by statute

Rule Enforcement and Fining Procedures Under Each Chapter

Both statutes allow associations to fine members for rule violations, but the process differs slightly. Chapter 718 outlines a specific method for issuing fines, including notice requirements, hearings before an independent committee, and limits on fine amounts. Chapter 720 includes similar procedures, but some flexibility exists depending on the association’s documents. Condo boards must be especially careful when suspending rights or accessing units, as additional protections apply.

Boards that fail to follow the enforcement steps risk having their fines voided. We help boards ensure compliance with notice periods, hearing structures, and documentation standards. Whether under 718 or 720, proper enforcement protects both the association and the member’s due process rights. Legal support ensures penalties are applied consistently and within the scope of the law.

Enforcement procedures include:

• Written notice of the violation

• Hearing before a separate, unbiased committee

• Defined timeframes and fine caps

• Suspension of rights only after due process

When Legal Guidance Helps Associations Navigate Statutory Differences

While many similarities exist between HOAs and condo associations, the statutory differences can have significant consequences. A process that’s valid under Chapter 720 might not meet the requirements of Chapter 718. Misapplying the wrong statute can result in voided actions or disputes with homeowners. That’s why it’s critical to understand which law governs your community.

Our team helps associations determine the correct legal framework, update their procedures, and stay compliant with Florida’s evolving statutes. We provide document review, bylaw interpretation, and enforcement support tailored to your structure. Whether you’re operating a high-rise condominium or a residential subdivision, statute alignment is the foundation for good governance. Ongoing legal oversight prevents mistakes before they escalate.

Legal support helps with:

• Identifying governing statutes

• Updating procedures and rules accordingly

• Resolving cross-statute confusion

• Protecting board actions from legal challenge

Florida Real Estate Contract FAQs for Buyers

Can I back out of a Florida real estate contract after signing?

Yes, but only under specific conditions outlined in the contract, such as inspection or financing contingencies. If those periods have passed, withdrawing could mean losing your escrow deposit or facing legal action. You’ll need to review the contract language to determine whether exit rights remain. An attorney can help evaluate your options before taking any action.

What happens if I miss a deadline in the contract?

Missing a deadline may place you in default, especially if the contract includes a “time is of the essence” clause. This could result in loss of deposit or give the seller grounds to cancel the deal. Buyers should track all contract timelines and communicate proactively about any needed extensions. Legal support helps ensure deadlines are met and documented.

Do I need an attorney to sign a Florida real estate contract?

While not required by law, hiring an attorney is highly recommended. Realtors are not allowed to interpret legal terms or provide advice on contract risks. An attorney ensures the agreement reflects your interests and identifies clauses that may need changes. It’s a protective step that often prevents costly misunderstandings.

Are inspection contingencies automatically included in every Florida contract?

No, they must be added or explicitly agreed upon. Standard contracts offer an inspection period, but buyers must act within that timeframe to retain their right to cancel or renegotiate. If you miss the deadline, the contract may continue as-is, regardless of property issues. Review these sections carefully with legal support.

What is an earnest money deposit, and can I lose it?

An earnest money deposit shows the buyer’s good faith and is held in escrow. If you cancel outside the contract’s allowed conditions, the seller may keep the deposit. However, if you cancel within a valid contingency period, the money is typically returned. Understanding the conditions tied to this deposit is essential before signing.

How do I know if the property title is clear?

Your contract should require the seller to provide a title commitment through a title company. This document outlines any existing liens, easements, or ownership complications. Buyers usually have a short window to object to problems discovered in the title report. Missing that period could mean accepting a title with legal restrictions.

Can I make changes to the contract after I sign it?

Changes after signing require a written addendum signed by both parties. Verbal agreements are not enforceable under Florida real estate law. An attorney can draft or review addendums to ensure changes are clear and enforceable. Never rely on handshake deals once a written contract is in place.

What should I look for in the financing section of the contract?

This section outlines whether your purchase depends on loan approval, how long you have to secure financing, and what happens if the loan falls through. It also covers whether you must apply for financing promptly and which types of loans are acceptable. Overlooking this section could expose you to penalties or loss of rights. Legal review ensures these terms match your lending situation.

How soon should I review the contract with an attorney?

Ideally, you should involve an attorney before signing or making an offer. If you’re already under contract, review should happen before deadlines like inspections or financing periods expire. Acting early gives you more time to correct or renegotiate problematic terms. Waiting too long limits your legal options.

What’s the risk of signing without understanding the full contract?

Signing without understanding can lead to waived protections, missed deadlines, or financial penalties. Florida courts assume you agreed to all terms once you sign. Without legal review, you may be committing to terms that aren’t in your favor. A short review now can prevent much larger problems later.