Florida Statute 720 Explained: What HOA Boards and Owners Need to Know
Quick Answers
- What it is: Chapter 720 of the Florida Statutes is the Homeowners’ Association Act, governing mandatory-membership homeowners associations that can impose assessments becoming a lien on a parcel.
- It is not the condo law. Condominiums are governed by Chapter 718. An association community is usually governed under one statute or the other, decided by how it was created, not by what it looks like.
- Default interest on unpaid assessments is 18 percent simple interest per year if the declaration and bylaws are silent, plus an administrative late fee of the greater of $25 or 5 percent of the installment.
- Collection runs on a fixed sequence: a 30 day notice of late assessment, then a 45 day notice of intent to record a lien, then a further 45 day notice before foreclosure can be filed.
- Fines are capped at $100 per violation and $1,000 in the aggregate. If aggregate unpaid fines total $1,000 or more, they can be converted into a lien against the parcel where the governing documents allow.
- Associations can collect rent directly from a tenant when the owner is delinquent, and can evict that tenant for nonpayment under Section 720.3085(8).
Talk Through a Chapter 720 Question
We advise boards and property managers across Palm Beach, Broward, and Miami-Dade.
Chapter 720 is the statute that decides what a Florida homeowners association can and cannot do. It sets the collection sequence, caps the fines, defines who gets to see the records, and governs how the board runs a meeting. Boards that treat the declaration as the final word get into trouble here, because where the declaration conflicts with Chapter 720, the statute generally wins.
What Chapter 720 Covers
The chapter applies to a homeowners association, which the statute defines as a Florida corporation responsible for operating a community or mobile home subdivision, where the voting membership is made up of parcel owners, membership is a mandatory condition of parcel ownership, and the association can impose assessments that may become a lien on the parcel if unpaid.
Each of those elements matters. A voluntary neighborhood association with no mandatory membership and no assessment authority is not a Chapter 720 association, and most of the obligations discussed here do not reach it.
How the Chapter Is Organized
| Part | Sections | Subject |
|---|---|---|
| Part I | 720.301 to 720.318 | General provisions: definitions, association powers, meetings, records, assessments, liens, fines, dispute resolution |
| Part II | 720.401 to 720.407 | Disclosure before sale of a parcel |
| Part III | 720.501 and following | Covenant revitalization |
Nearly every day-to-day question a board faces lives in Part I.
The Sections Boards Use Most
| Section | What it governs |
|---|---|
| 720.301 | Definitions, including what counts as an association and a parcel |
| 720.303 | Association powers, board meetings, official records, budgets |
| 720.3035 | Architectural review authority and its limits |
| 720.305 | Fines, suspension of use rights, member obligations |
| 720.306 | Members meetings, voting, amendments to governing documents |
| 720.3085 | Assessments, liens, foreclosure, rent demands to tenants |
| 720.311 | Dispute resolution and presuit requirements |
| 720.401 | Disclosure summary provided to a buyer before sale |
Assessments, Interest, and Late Fees
Section 720.3085 sets the money rules, and they are more prescriptive than most boards realize.
- Interest. Unpaid assessments bear interest from the due date at the rate in the declaration or bylaws, which may not exceed the rate allowed by law. If no rate is stated, simple interest accrues at 18 percent per year.
- No compounding. Notwithstanding anything in the declaration or bylaws, compound interest may not accrue on unpaid assessments.
- Late fee. If the declaration or bylaws provide for it, the association may charge an administrative late fee not exceeding the greater of $25 or 5 percent of each past due installment.
- A late fee is not a fine. The statute says so expressly, which means the fine procedures and caps do not apply to it.
- Attorney fees require notice first. An association may not require payment of attorney fees related to a past due assessment without first delivering a written notice of late assessment giving the owner a chance to pay without those fees.
The Collection Sequence Before a Lien
Chapter 720 builds in three separate waiting periods. Skipping one is the most common defect in association collection files.
| Step | Notice | Waiting period |
|---|---|---|
| 1 | Notice of Late Assessment | 30 days before further collection action, and required before charging attorney fees |
| 2 | Notice of Intent to Record a Claim of Lien | 45 days after receipt before the lien may be recorded |
| 3 | Notice of intent to foreclose | 45 days after that notice before a foreclosure action may be filed |
The second and third notices must be sent by registered or certified mail with return receipt requested, and also by first-class mail, to the owner’s address in the association records and, if different, to the parcel address. A rebuttable presumption of proper mailing arises from a sworn affidavit by a board member, officer, agent, or licensed manager.
An owner can also push back. By recording a Notice of Contest of Lien, the owner forces the association to file suit within 90 days of service or the lien becomes void.
Foreclosure and Rent Receivers
The association may foreclose its lien in the same manner a mortgage is foreclosed, and may separately sue for a money judgment without waiving the lien. Reasonable attorney fees are recoverable in either action.
Two provisions favor the association during the case. If the parcel is rented while the foreclosure is pending, the association is entitled to appointment of a receiver to collect the rent, with the receiver’s expenses paid by the non-prevailing party. And if the owner stays in possession after a foreclosure judgment, the court may require the owner to pay reasonable rent.
Fines and Suspensions Under Section 720.305
- Board levies the proposed fine. The cap is $100 per violation and $1,000 in the aggregate unless the governing documents provide otherwise, with continuing violations chargeable per day under a single notice.
- Send 14 days written notice. The notice goes to the owner’s designated mailing or email address in the official records and must describe the violation, the specific action required to cure it, and the hearing details.
- Hold the hearing within 90 days. It goes before a committee of at least three members appointed by the board who are not officers, directors, or employees, nor the spouse, parent, child, brother, or sister of one.
- The committee confirms or rejects. Its role is limited to those two options. If a majority does not approve the fine, the fine cannot be imposed, nor may a lesser amount be levied.
- Written findings within 7 days. The committee notifies the owner of what it approved or rejected and how to cure.
- Payment due at least 30 days out. A fine of less than $1,000 may not become a lien against the parcel.
In an action to recover a fine, the prevailing party is entitled to reasonable attorney fees and costs, which cuts both ways.
Collecting Rent Directly From a Tenant
This is the most underused tool in Chapter 720. Where a parcel is occupied by a tenant and the owner is delinquent on any monetary obligation, Section 720.3085(8) lets the association demand that the tenant pay rent directly to the association until the owner’s obligations are paid in full.
The statute supplies the demand notice language. A tenant who pays the association gains complete immunity from any claim for that rent by the landlord, and the tenant’s liability never exceeds what the tenant owed the landlord in the first place. If the tenant already paid the landlord for the current period and provides written proof within 14 days, the obligation starts with the next rental period.
And if the tenant fails to pay the association, the association may issue a notice under Section 83.56 and sue for eviction under Sections 83.59 through 83.625 as if it were a landlord under Part II of Chapter 83. The association does not become a landlord for other purposes and has no maintenance obligations under Section 83.51.
Section 720.3085(3)(b) dictates where a payment goes, and the owner does not get to choose. Any payment an association receives applies first to accrued interest, then to the administrative late fees, then to collection costs and reasonable attorney fees, then to special assessments, and only then to the delinquent assessments. The statute says this controls notwithstanding any restrictive endorsement, designation, check memo, or instruction placed on or accompanying the payment, and notwithstanding any purported accord and satisfaction.
The practical consequence catches owners and boards alike. An owner who writes a check for the exact assessment amount and notes “assessments only” on the memo line has not paid the assessment. The money is consumed by interest and fees first, the assessment stays partly unpaid, and the lien and foreclosure clocks keep running. Boards that quietly credit such payments to the assessment to keep the peace are departing from the statute and undermining their own collection file.
Where Chapter 720 and Chapter 718 Diverge
| Issue | HOA, Chapter 720 | Condo, Chapter 718 |
|---|---|---|
| Property interest | Owner holds a parcel in fee, association owns common areas | Owner holds a unit plus an undivided share of common elements |
| Fine aggregate, per issue | Can be more than $1,000 if the governing documents allow more | Capped at $1,000 per issue, no override |
| Default interest if documents are silent | 18 percent, simple interest | 18 percent, simple interest |
| Estoppel certificate deadline | Governed by Section 720.30851 | Governed by Section 718.116(8) |
Most association disputes are procedural, not substantive.
Kelley, Grant & Tanis advises Florida community associations on collections, covenant enforcement, and governance, with Kara Tanis leading the firm’s association law practice. Call (561) 672-1161 or contact the firm. Related reading: HOA versus condo law compared and conducting association elections and board meetings.
Frequently Asked Questions
What is Florida Statute 720?
Chapter 720 is the Florida Homeowners’ Association Act. It governs mandatory-membership homeowners associations, covering board meetings, official records, assessments, liens, foreclosure, fines, architectural review, voting, and presuit dispute resolution.
What is the difference between Chapter 720 and Chapter 718?
Chapter 720 governs homeowners associations, where owners hold a parcel in fee and the association typically owns the common areas. Chapter 718 is the Condominium Act, where owners hold a unit plus an undivided share of the common elements. Which chapter applies depends on how the community was legally created, not on the type of building.
What happens if you do not pay HOA assessments in Florida?
Interest begins accruing from the due date, along with a late fee if the documents authorize one. The association must send a notice of late assessment, then a notice of intent to record a claim of lien, then a further notice before filing foreclosure. The association may also sue for a money judgment and may demand rent directly from any tenant occupying the parcel.
How much interest can a Florida HOA charge on late assessments?
The rate stated in the declaration or bylaws applies, up to the maximum allowed by law. If no rate is stated, simple interest accrues at 18 percent per year. Compound interest may not be charged regardless of what the governing documents say.
How much can a Florida HOA fine an owner?
A fine may not exceed $100 per violation, and the aggregate may not exceed $1,000 unless the governing documents provide otherwise. Fines may be levied per day for a continuing violation under a single notice and hearing. A fine of less than $1,000 cannot become a lien against the parcel.
Can an HOA foreclose on your home in Florida?
Yes. When authorized by the governing documents, the association has a lien on each parcel and may foreclose it the same way a mortgage is foreclosed. Foreclosure cannot be filed until 45 days after the owner receives notice of the association’s intent to foreclose, which itself can only be sent after the earlier 45 day lien notice period has passed.
Can an HOA collect rent from my tenant?
Yes. Under Section 720.3085(8), if the parcel is occupied by a tenant and the owner is delinquent, the association may demand that the tenant pay rent directly to the association until the owner’s obligations are satisfied. The tenant is immune from any claim by the owner for rent properly paid to the association.
How long does an HOA have to enforce a lien?
An HOA lien is good for five years from the date it is recorded.
Does Chapter 720 apply to a voluntary neighborhood association?
Generally no. The statutory definition requires mandatory membership as a condition of parcel ownership and the authority to impose assessments that may become a lien. A voluntary association lacking those features falls outside most of the chapter.
If you’re preparing to sign a Florida real estate contract, our attorneys can review the full agreement and flag potential issues before you’re locked in.
We make sure your rights are preserved and help you avoid clauses that create risk. Call 1-877-871-8300 to get started.
The Role of Timelines, Deadlines, and Default Triggers
Every Florida real estate contract includes strict timelines that affect inspections, financing, and closing. Missing any of these deadlines, even by a day, can result in contract cancellation or loss of deposit. There are also “time is of the essence” clauses that make these dates legally enforceable. Buyers must also track notice periods for contract changes or contingency removals.
If the other party alleges a missed deadline, you may be considered in default. Working with legal counsel helps ensure these dates are manageable and documented properly to avoid disputes.
Time-sensitive elements to monitor:
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Inspection period expiration
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Loan commitment deadlines
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Title review and objection window
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Final walk-through and occupancy deadlines
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Closing date and required funding
Title, Liens, and Property Ownership Clauses
Buyers should not assume a property comes with clean title or without existing obligations. Title clauses in the contract specify the seller’s duty to provide marketable title and resolve any liens or encumbrances. However, these provisions have time limits for objections—miss that window and you may be forced to accept a property with legal baggage.
You’ll also want to confirm whether the seller has full authority to sell, especially in probate or trust sales. Title issues can delay closing or expose you to future legal costs. Our attorneys ensure you understand your title rights before signing.
Key title-related considerations:
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Title insurance coverage and responsibilities
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Existing mortgages, liens, or unpaid taxes
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Easements or access restrictions
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HOA rules or deed restrictions
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Disputes over ownership or seller authority
When and How to Request Legal Review Before Signing
Ideally, buyers should bring in an attorney before making an offer or immediately after receiving a draft contract. This gives enough time to suggest changes, add protections, or clarify language without delaying the transaction. Legal review is about understanding what you’re actually agreeing to.
Florida’s market moves quickly, but taking a few hours for review can prevent costly mistakes. If your agent or the other party resists attorney involvement, that may signal red flags. We offer fast-turnaround reviews to help buyers keep pace without sacrificing protection.
When to bring in an attorney:
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Before signing an offer
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After receiving a draft contract
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If a seller counters with new terms
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When changes are made through addendums
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Anytime a term is unclear or seems risky
What Happens If You Sign Without Fully Understanding the Terms
Once a contract is signed, you’re generally bound by its terms, even if you didn’t fully grasp them. Florida courts assume you read and understood what you signed unless there’s evidence of fraud or coercion. If you waive key contingencies without realizing it, you may lose your deposit or be forced to close on unfavorable terms. You also lose leverage to negotiate better protections later.
In cases where post-signing problems arise, your legal options are limited. That’s why pre-signing legal review is far less costly than post-signing litigation.
Potential consequences of uninformed signing:
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Loss of escrow funds
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Legal liability for backing out
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Being forced to close under bad terms
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Waiving inspection or financing rights
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Difficulty enforcing vague or incorrect clauses
Before signing any real estate contract in Florida, make sure you’ve reviewed each section with an attorney who understands what’s at stake.
We help buyers avoid preventable risks and sign with confidence. Contact our office at 1-877-871-8300 to speak with Kelley, Grant, & Tanis, P.A. today.
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.