“Understanding Condominium Association Fees in Florida Unit Sales and Transfers” – News-Press
Q: I am in the process of selling my condominium unit. What fees or other charges can my condominium association charge in connection with the sale of my unit? (R.B., via e-mail)
A: Chapter 718, Florida Statutes, the Condominium Act, provides that a condominium association cannot charge a fee in connection with the transfer of a unit, with limited exceptions. Section 718.112(2)(k) of the Condominium Act provides that while a condominium association is generally prohibited from charging any fee in connection with the transfer of a unit, the association may charge a fee in connection with the sale, lease, mortgage, sublease, or other transfer of a unit, if two conditions are met: (1) the association’s approval of the transfer is required, and (2) the declaration, articles, or bylaws of the association specifically provide for the imposition of a fee for such approval.
If these conditions are satisfied, the fee may be preset but cannot exceed $150 per applicant, with spouses and dependent children counted as single applicants. The statutory cap is subject to adjustment every five years based on changes in the Consumer Price Index, with the Department of Business and Professional Regulation (“DBPR”) responsible for publishing the updated maximum fee. The next update will be released by July 1, 2026.
While not applicable to the sale of a unit, the Condominium Act states that no transfer fee may be charged for the renewal of a lease or sublease with the same lessee or sublessee.
Further, Section 718.116(8) of the Condominium Act addresses estoppel certificate fees. An estoppel certificate is a document provided by the association that certifies what assessments and other amounts are owed on a unit. The Condominium Act expressly distinguishes estoppel certificate fees from transfer fees, stating that, notwithstanding the transfer fee limitations in Section 718.112(2)(k), an association or its authorized agent may charge a reasonable fee for preparing and delivering an estoppel certificate.
This fee is statutorily capped at $299, with an additional $119 allowed for expedited requests and up to $179 more if the account is delinquent. These caps are also subject to periodic adjustment based on the Consumer Price Index, and the DBPR is tasked with publishing the updated amounts. The next update will be released by July 1, 2027. The authority to charge an estoppel certificate fee must be established by a written resolution of the board or provided by a written management, bookkeeping, or maintenance contract, and the fee is payable upon preparation of the certificate.
If the certificate was requested for a sale or mortgage that does not close, and a non-owner payor (like a buyer or lender) requests a refund in writing within 30 days of the scheduled closing (with reasonable proof the closing did not happen), the statute requires the fee be refunded to that payor within 30 days. The unit owner is responsible for reimbursing the association for the refunded fee, and the association can collect it from the owner like any other assessment. The right to reimbursement cannot be waived or modified by any contract, and if there is a legal dispute over reimbursement, the prevailing party is entitled to damages and attorney’s fees and costs.
For homeowners’ associations governed by Chapter 720, Florida Statutes, the Homeowners’ Association Act, there are similar provisions regarding the issuance of estoppel certificates and what amounts can be charged in Section 720.30851 of the Homeowners’ Association Act. However, the Homeowners’ Association Act does not prohibit a homeowners’ association from charging a fee in connection with the transfer of a parcel. Rather, such fees, often referred to as a capital contribution or resale fee/assessment, are relatively common.
If an association has a question about what fees it can charge in connection with the transfer of title or lease of a unit or parcel in their community, the association should review the issue with its legal services provider.
Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers. Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com. Past editions may be viewed at floridacondohoalawblog.com.
