Sell a Condo with a Special Assessment in Fort Lauderdale

The Champlain Towers South collapse in Surfside on June 24, 2021, killed 98 people and fundamentally changed how Florida regulates condominiums. The resulting legislation — Senate Bill 4-D (2022), codified largely into Florida Statute 718.112(2) — imposed milestone inspection requirements and structural integrity reserve studies on condo buildings across the state. For condo owners in Fort Lauderdale and Broward County, the fallout has been significant: rising assessments, mandatory structural repairs, and special assessments that can run tens of thousands of dollars per unit.

If you own a condo facing a special assessment, selling it through a traditional listing has become harder. Here's what changed, how special assessments work, and how cash buyers absorb them.

What SB 4-D Changed

Before SB 4-D, Florida's condo recertification rules were a patchwork. Miami-Dade and Broward had local 40-year recertification ordinances, but the rest of the state had no statewide structural inspection requirement. After the Champlain Towers collapse, the Florida Legislature passed SB 4-D in a special 2022 session, creating a statewide milestone inspection program.

Under the current law (Florida Statute 718.112(2)(g)), condo buildings three stories or taller must complete a milestone inspection by a licensed engineer:

• Buildings that reached 30 years of age before July 1, 2022, had to complete the inspection by December 31, 2024.
• Buildings reaching 30 years on or after July 1, 2022, must complete the inspection within 30 years of the building's original certificate of occupancy.
• Buildings within three miles of the coastline have a shortened timeline of 25 years instead of 30.

The inspection has two phases. Phase 1 is a visual inspection of the building's structural components. If the engineer finds substantial structural deterioration, Phase 2 requires a more detailed inspection with testing. If the building fails to complete the milestone inspection, the association cannot renew permits or, in some interpretations, the local enforcement agency can take action.

Structural Integrity Reserve Studies

SB 4-D also mandated structural integrity reserve studies (SIRS) under Florida Statute 718.112(2)(g)2. A reserve study must be completed every 10 years and must account for the replacement cost of structural components — roof, load-bearing walls, floor slabs, foundation, fireproofing, and plumbing.

Crucially, the law requires condo associations to fully fund the structural reserves. Before SB 4-D, many associations waived full reserve funding, keeping monthly dues low and deferring maintenance. That's no longer legal for structural reserves. The result: associations are raising monthly dues and levying special assessments to close the funding gap.

Special Assessments After Structural Repairs

When a milestone inspection identifies structural deterioration, the association must repair it. If the reserves are insufficient — which they often are, because pre-2022 associations routinely underfunded reserves — the association levies a special assessment to cover the cost.

Special assessments in Fort Lauderdale condos have ranged from a few thousand dollars per unit to over $50,000 per unit in buildings requiring major concrete restoration. These assessments are typically payable over 6-12 months, and they become a lien against the unit if unpaid.

For owners who can't afford the assessment, the options are limited: take out a loan, pay from savings, or sell. But selling a condo with a pending or unpaid special assessment through a traditional listing is difficult.

Why Traditional Sales Struggle

When a condo has a pending or unpaid special assessment:

1. Financed buyers face lender scrutiny. Lenders review the association's financials and may decline to lend on a unit in a building with a pending special assessment, especially if the building failed its milestone inspection or has underfunded reserves.

2. Buyers negotiate the assessment. A retail buyer will demand the seller pay the assessment at closing or reduce the price by the assessment amount. This eats into proceeds.

3. The estoppel certificate reveals everything. The association's estoppel certificate — required at closing — discloses all pending assessments, unpaid dues, and the association's reserve status. Buyers see this before closing and can walk.

The Estoppel Certificate

An estoppel certificate (Florida Statute 718.116) is a document the condo association provides to the title company before closing. It certifies the unit's outstanding balance — monthly dues, special assessments, transfer fees, and working capital contributions. The estoppel is binding on the association, meaning the buyer can't be charged for anything not disclosed on it.

The estoppel fee in Florida is capped at $250 for unpaid assessments (the association can charge more for expedited or additional services), and the association must provide it within 15 days of request. If the association fails to provide it, the buyer's liability for unpaid assessments is limited.

For sellers, the estoppel is where the special assessment becomes public to the buyer. There's no hiding it.

40/50-Year Recertification in Broward

Broward County had its own recertification program before SB 4-D. Broward's 40-year recertification ordinance (modeled on Miami-Dade's) requires buildings 40+ years old to undergo structural and electrical recertification. After the Surfside collapse, Broward accelerated some timelines and tightened requirements, aligning with the statewide milestone inspection program.

Buildings that reach 40 years must complete the recertification, and buildings that reach 50 years must complete a second recertification. Fort Lauderdale's older condo stock — particularly along the beachfront corridors of A1A and the Galt Ocean Mile area — has a high concentration of buildings in or approaching recertification age.

How Cash Buyers Absorb Assessments

Cash buyers can purchase condos with pending or unpaid special assessments because they don't require lender approval. The process:

1. The assessment is disclosed. The seller provides the estoppel certificate and any milestone inspection reports.

2. The assessment is priced into the offer. The cash buyer deducts the assessment amount (and any expected future assessments) from the offer price.

3. The assessment is paid at closing or assumed. The cash buyer can pay the outstanding assessment from the seller's proceeds at closing, or take the unit subject to the assessment and pay it post-closing.

4. No lender, no financing contingency. The sale closes regardless of the building's financial condition.

For owners facing a $30,000 assessment they can't pay, a cash sale can be the cleanest exit. The assessment doesn't disappear, but it's handled as part of the transaction rather than as a barrier to it.

The Bottom Line

The post-Surfside regulatory environment has made selling a condo with structural issues or pending assessments more difficult through traditional channels. Lenders are cautious, buyers are wary, and the estoppel certificate makes everything transparent. If your condo association has levied a special assessment you can't afford, or your building is facing milestone inspection costs, a cash buyer can close quickly and absorb the assessment as part of the purchase.

If you own a Fort Lauderdale condo facing a special assessment or milestone inspection costs and want a written cash offer, call or text (650) 540-1854. We buy condos as-is, with assessments priced into the offer.