Florida Statute 718 Explained: What Condo Boards and Owners Need to Know

Chapter 718 is longer and more prescriptive than the homeowners association statute, and for good reason. Condominium ownership is a shared property interest, so the statute regulates not just how the association behaves but how the building itself is maintained, funded, and eventually handed over by the developer. Boards that borrow procedures from HOA practice frequently get the details wrong.

What Chapter 718 Governs

The Condominium Act covers the creation of a condominium, the declaration and its amendment, the association’s powers and records, budgets and reserves, assessments and liens, unit owner remedies, rules and fining, developer obligations, and the transfer of control to owners.

Whether a community falls under Chapter 718 or Chapter 720 turns on how it was legally created, not on architecture. Townhomes can be condominiums or HOAs. The declaration is what decides.

Assessments, Interest, and How Payments Apply

Section 718.116 is the money section, and it closely parallels the HOA rules with condo-specific wrinkles.

• Liability follows title. A unit owner is liable for all assessments coming due while they own the unit, regardless of how title was acquired, including by purchase at a foreclosure sale or by deed in lieu.
• Interest. Unpaid assessments bear interest at the declaration rate, capped by law. If the declaration is silent, 18 percent per year applies.
• Late fee. If the declaration or bylaws authorize it, the association may charge an administrative late fee of up to the greater of $25 or 5 percent of each delinquent installment.
• Payment application is fixed by statute. Any payment applies first to accrued interest, then the administrative late fee, then collection costs and reasonable attorney fees, then to special assessments (if any), and only then to delinquent assessments.
• Restrictive endorsements do not work. The above priority payment scheme controls notwithstanding any purported accord and satisfaction or any instruction written on the payment.
• Delinquency can block a lease. Where the declaration or bylaws let the association approve or disapprove a proposed lease, grounds for disapproval may include the owner being delinquent at the time approval is sought.

Estoppel Certificates Under Section 718.116(8)

This is the provision that touches every condo closing in Florida, and the deadlines are strict.

The waiver rule is what makes this section unforgiving. A clerical error understating the balance is not a correctable mistake once a buyer has relied on it in good faith. The shortfall becomes a common expense borne by every other owner in the building.

The Safe Harbor for First Mortgagees

When a first mortgagee, or its successor or assignee, takes title through foreclosure or deed in lieu, its liability for assessments that came due before it acquired title is capped. The cap is the lesser of the unit’s unpaid common expenses and regular periodic or special assessments accruing during the 12 months immediately preceding acquisition of title, or one percent of the original mortgage debt.

The limitation applies only if the mortgagee filed suit against the unit owner and initially joined the association as a defendant in the foreclosure. Boards that are not joined, and lenders that fail to join them, both need to understand this, because it determines whether the association collects twelve months or one percent or the entire balance.

Liens and Collection

The association has a lien on each condominium parcel to secure the payment of assessments. As with an HOA, the association must send a notice of late assessment before charging attorney fees, then a notice of intent to record a claim of lien, and must give notice of intent to foreclose before filing suit.

The association may foreclose the lien in the same manner a mortgage is foreclosed and may separately pursue a money judgment for the unpaid assessments without waiving the lien.

Fines Under Section 718.303

Condominium fining follows the same architecture as the HOA process, with one meaningful difference. Unlike Chapter 720, fines cannot become liens in condominiums.

The procedural requirements track the HOA model: written notice, an opportunity for a hearing before a committee of members who are not officers, directors, or employees of the association nor their close relatives, and a committee that can only confirm or reject what the board proposed.

Transition of Control From the Developer

Chapter 718 fixes the moment owners take over, which is one of the most consequential and least understood parts of the statute.

Once unit owners other than the developer hold 15 percent of the units, they are entitled to elect at least one third of the board. Majority control passes on the earliest of a set of triggers in Section 718.301(1), including three years after 50 percent of the units have been conveyed, three months after 90 percent have been conveyed, and an outside backstop of seven years measured from the surveyor’s certificate or the first transfer of a unit without an assignment of developer rights.

That backstop matters for owners in stalled or slow-selling projects, because it sets an absolute deadline regardless of how few units have sold.

Chapter 718 Compared to Chapter 720

Frequently Asked Questions

What Title Insurance Covers, and What It Doesn’t

Title insurance provides protection against many problems, but not everything is covered. Policies typically protect buyers from unknown claims, fraud, or recording errors. However, they may exclude known issues, zoning disputes, or certain unrecorded liens. They also don’t fix problems in real time, you may still have to file a claim and wait for a decision.

That’s why we review not just the policy, but the exceptions list and attached schedules. We help you understand what’s covered, what’s not, and how to fix issues before they require a claim.

Title insurance limitations to be aware of:

• Doesn’t cover known issues at closing

• May exclude boundary disputes or encroachments

• Can deny claims tied to missed searches

• Doesn’t replace legal review before the purchase

Situations Where Buyers Are Most at Risk for Title or Lien Problems

Some types of transactions carry higher title risk than others. Foreclosures, estate sales, or for-sale-by-owner deals often lack full documentation or have unresolved claims. Properties owned in trusts or transferred through probate may include title defects if prior documents were recorded improperly.

Fast-moving deals with waived inspections or contingencies also reduce time to identify issues. We help assess the risk level early, flag potential red flags, and take corrective action when needed. If you’re buying anything other than a standard resale, legal involvement is even more critical.

High-risk transaction types include:

• Foreclosures and short sales

• Estate or probate transfers

• FSBO or private deals

• Trust or corporate-owned properties

• Flipped homes with quick title turnover

When and How to Involve a Real Estate Lawyer

The best time to bring in a lawyer is before signing a purchase agreement or during the contract period before closing. Once you’re under contract, we review the title commitment, seller documents, and lien reports as they come in. If any concerns arise, we take immediate steps to resolve them through legal channels.

Waiting until the week of closing increases your risk and reduces the time available to correct issues. We also assist with escrow instructions, legal notices, and contract addendums as needed. A short review now can prevent long-term legal complications.

Steps to get started:

• Send us your contract and title commitment

• We’ll review for liens, ownership gaps, and document errors

• We communicate directly with agents and title companies

• You get a clear summary and guidance on next steps

What Happens If a Lien or Title Issue Is Found After Closing?

If a title issue surfaces after the deal has closed, the new owner may be legally responsible for resolving it—even if the problem originated before their purchase. This includes previously undisclosed liens, missing signatures on past deeds, or fraudulently recorded claims. Title insurance may cover some of these issues, but claims often take time to investigate and resolve.

In the meantime, the buyer may face legal costs, hold-ups in refinancing, or difficulty selling the home. Our team helps buyers explore legal remedies, from quiet title actions to negotiating lien releases. We also guide clients on when and how to file a claim with their title insurer.

Post-closing issues may involve:

• Lawsuits to remove invalid liens

• Delays in resale or refinancing due to title defects

• Costly repairs if the issue limits access or use

• Legal fees not always covered by insurance

How Buyers Can Confirm Title Is Fully Cleared Before Wiring Funds

Before wiring closing funds, it’s critical to confirm that the property’s title has been fully cleared. This includes verifying that all prior liens are satisfied, all necessary documents have been recorded, and that the deed reflects the correct buyer and legal description. We coordinate with the title company to ensure the final title update is complete and that no last-minute issues were missed.

Buyers should never assume title is clear without reviewing the final documents. Our legal team provides a closing checklist, verifies recorded releases, and confirms the title policy matches the purchase terms. These steps help you fund with confidence.

Final checks before closing include:

• Review of final title update

• Verification of recorded lien releases

• Matching deed details to contract terms

• Cross-checking title policy coverage and exceptions

Florida Title and Lien Issues: Frequently Asked Questions

What is a lien on a property, and why does it matter?

A lien is a legal claim against a property for unpaid debts, such as contractor bills, property taxes, or court judgments. If the lien isn’t cleared before closing, it could transfer with the property and become your responsibility. Florida law generally holds the current owner accountable, even if the lien predates their ownership. That’s why lien discovery is a critical part of pre-closing review.

How do real estate lawyers find hidden title issues?

We review the full title commitment, check supporting public records, and compare legal descriptions across documents. In some cases, we also request updated lien searches or work with the title agent to clarify unusual exceptions. If something looks off—like a gap in ownership or an old mortgage—we investigate it before closing. Our goal is to catch anything a standard search might overlook.

Can title insurance cover all lien and ownership problems?

Title insurance offers protection against many unknown risks, but it does not cover everything. Known issues, unrecorded documents, or certain code violations may be excluded. If you buy without legal review, you may not know what was excluded until it’s too late. We help you interpret the policy and flag items that require resolution before closing.

Are probate and inherited properties more likely to have title issues?

Yes, properties transferred through estates or probate proceedings are more prone to title complications. If a required court order was never recorded or an heir never formally waived interest, it can cloud the title. These issues aren’t always visible in a basic search. We help confirm that all legal transfers were valid and enforceable before proceeding.

What happens if a lien is discovered just before closing?

If a lien surfaces late, the seller must typically resolve it to avoid delaying the transaction. We work with the title company and seller’s legal team to ensure it’s paid off, released, and documented correctly. Buyers should never proceed until the lien is fully cleared and recorded. Delaying funding by a day is better than inheriting thousands in unresolved debt.

How do I know if a property has clear title before I wire closing funds?

We confirm this by reviewing the final title update, lien payoff statements, and deed draft. Our team ensures that all documents are consistent and that no new issues appeared since the initial search. We also verify that your title policy is accurate and enforceable. These last steps protect you from post-closing surprises.

Can liens or title issues prevent me from selling the home later?

Absolutely—title defects can delay or block resale if not resolved. Buyers and lenders will require clear title before approving a future deal. If you inherit a lien without realizing it, you may be forced to pay it off before listing the property. That’s why early legal review isn’t just about buying—it’s about preserving your ability to sell later.

How much does it cost to have a lawyer review title and lien records?

Legal review costs are typically flat-fee and depend on the complexity of the transaction. For most residential deals, the cost is minor compared to the value of the protection. We’ll always explain fees up front and only begin once you’re ready. Think of it as part of the investment in a clean, problem-free closing.

Is it common for title companies to miss things?

Title companies do thorough work, but they operate within standard protocols and are not responsible for legal interpretation. They issue policies based on recorded documents but do not investigate ownership authority or lien legitimacy. That’s where legal review adds value. We assess what’s missing, not just what’s filed.

When should I bring in a lawyer during the closing process?

Ideally, as soon as you’re under contract—or earlier, if possible. This gives us time to review title commitments, lien reports, and seller documentation before the final days of closing. Waiting until problems appear limits your options. Early involvement means more time to resolve issues and more peace of mind at closing.