As Condo Assessments Rise, Florida Agents Need 4 Checks Beyond the Estoppel - The Close

As Condo Assessments Rise, Florida Agents Need 4 Checks Beyond the Estoppel

Condo prices are falling while association costs rise. Florida agents should run these four estoppel checks before closing.

Jul 13, 2026
3 minute read
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Condo prices are falling even as the cost of owning one continues to rise. A July 2026 report found that national condo list prices were 6% below their March 2022 level, while 54% of surveyed community associations expected to raise regular assessments and 14% anticipated special assessments.

The trend extends beyond Florida, but the state offers one of the clearest examples of how structural repairs, reserve funding and insurance costs can reshape a transaction. Those expenses may not appear as a balance currently due on a condo estoppel certificate.

Florida agents should compare the estoppel with association financials, inspection records, the reserve study and recent meeting minutes before the buyer’s review period ends. Agents in other states can apply the same broader due-diligence approach while following their own disclosure and association laws.

What a Florida condo estoppel covers

Under Section 718.116 of the Florida Statutes, an association must generally issue an estoppel certificate within 10 business days after receiving a written or electronic request. If the association misses that deadline, it may not charge a preparation and delivery fee.

The certificate lists the regular assessment, paid-through date, next payment, unpaid amounts, and charges scheduled during its effective period. It also covers transfer fees, noticed violations, board approval, rights of first refusal, and other associations tied to the unit.

A certificate delivered electronically or by hand remains effective for 30 days. One sent by regular mail remains effective for 35 days.

An association generally waives its right to collect amounts above those disclosed from a person who relies on the certificate in good faith. Current maximum charges are $299, plus up to $119 for three-business-day delivery and $179 for a delinquent unit.

Check 1: Reserve study and upcoming repairs

Review the structural integrity reserve study, or SIRS, for major components approaching the end of their useful lives and their estimated replacement costs. Near-term projects without clear funding warrant questions about reserves, borrowing, and possible assessments. Agents should refer those concerns to the buyer’s lender, attorney, or another qualified adviser rather than judge reserve adequacy themselves.

What the estoppel does not show

For a resale by a nondeveloper owner, Florida law entitles the buyer to specified records at the seller’s expense. Those records include the annual financial statement and budget, the latest SIRS, an applicable milestone inspection summary, and an applicable turnover inspection report. The Florida Realtors/Florida Bar condo rider in use since July 1, 2025, also lets buyers request 12 months of meeting records and insurance declaration pages when the seller agrees to provide them.

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Check 2: Recent meeting minutes

Meeting minutes may reveal repair proposals, reserve discussions, borrowing, insurance changes, or possible assessments not yet shown on the estoppel. Look for recurring references to deferred work, engineering recommendations, funding options, and upcoming votes, while distinguishing discussion from formal board action.

Check 3: Association insurance and deductibles

Review association insurance records for deductibles and coverage concerns. A large hurricane or windstorm deductible may leave the association responsible for a substantial loss, so buyers should consult an insurance professional about individual coverage and lender requirements.

Check 4: Project financing risks

Reserve deficiencies, deferred maintenance, litigation, owner delinquencies, and insurance problems can affect project eligibility. Ask the buyer’s lender to review project-level risks early and confirm applicable FHA or VA requirements before treating those financing paths as available.

Act before the buyer’s review period ends

Compare the estoppel with the budget, financial statement, inspection and reserve records, and meeting minutes obtained under the contract. Raise mismatched dues, pending assessments, or unclear deductibles before the buyer’s review period ends. Identifying those costs early gives buyers time to adjust their offer, financing or exit strategy before the transaction reaches underwriting or closing.

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