Selling a Condo in Fort Lauderdale | What Every Seller Needs to Know

Read this before you list your condominium --getting this wrong will cost you money.

By Michele Noonan | South Florida Condo Specialist | Licensed Since 1996

Last Updated: June 2026

Selling a condominium in South Florida is not the same as selling a single family home. The variables are different, the buyer pool is different, the documentation requirements are different, and the consequences of getting any one of them wrong can cost you thousands of dollars, months of market time, or both. I have represented condo sellers and buyers across multiple Broward County markets at price points ranging from $75,000 to $5,000,000. What I have learned across every one of those transactions is that the sellers who are prepared before they list consistently outperform the sellers who discover these issues mid-transaction. The difference between those two outcomes almost always comes down to one thing — who they called before they listed.

The Milestone Inspection Law

In 2022 Florida enacted the Building Safety Act in response to the Surfside condominium collapse. The law requires condominium buildings that are three stories or more in height to undergo a mandatory milestone structural inspection once the building reaches 30 years of age and every 10 years thereafter. For buildings located within three miles of the coastline the requirement kicks in at 25 years. The inspection must be performed by a licensed engineer or architect and the results must be reported to the local building official. If a phase two inspection is required the building must complete all required repairs before receiving recertification.

What this means for condo sellers is significant. A building that has not completed its required milestone inspection or that has failed its inspection and not completed required repairs can face restrictions on buyer financing. Lenders will not approve conventional loans on units in non-compliant buildings. That eliminates financed buyers from your buyer pool entirely and leaves you dependent on cash buyers who know they have leverage and use it at the negotiating table. Before you list your condo you need to know exactly where your building stands on milestone inspection compliance. If you do not know the answer to that question before you list you are not ready to list. This is exactly the kind of variable that a South Florida condo specialist identifies and addresses before your home ever hits the market.

The 40 Year Recertification

Broward County requires buildings that are 40 years old or older to undergo a recertification inspection to verify that the structure remains safe and meets current building code standards. The recertification must be completed by a licensed engineer or architect and submitted to the Broward County Building Division. Buildings that have not completed their 40 year recertification or that have open violations from the recertification process can face significant issues during the sale process. Buyers and their lenders scrutinize recertification status during due diligence and a building with an open recertification issue can kill a financed transaction after you are already under contract. Knowing your building's recertification status before you list gives you the opportunity to address issues proactively rather than losing a buyer mid-transaction. Most sellers have no idea where their building stands on this requirement until a buyer's agent asks the question during due diligence. By then it is too late to do anything about it without losing the buyer.

The SIRS Report — Structural Integrity Reserve Study

Florida law now requires condominium associations to complete a Structural Integrity Reserve Study for buildings three stories or higher. The SIRS report is a comprehensive engineering assessment of the building's major structural components including the roof, load bearing walls, foundation, fireproofing, plumbing, electrical systems, windows, and waterproofing systems. The study must be completed by a licensed engineer or architect and must include a funding plan that ensures the association maintains adequate reserves to address future repair and replacement needs. Associations are no longer permitted to waive reserve funding for structural components covered by the SIRS report. This is one of the most significant changes in Florida condominium law in decades and it has direct consequences for sellers. A building that does not have a compliant SIRS report or that is significantly underfunded on structural reserves is a building that sophisticated buyers and their agents will walk away from. The SIRS report is not optional and sellers who do not know their building's status are walking into the market blind. An experienced South Florida condo specialist will pull this information before your home goes to market so there are no surprises.

Legal Addendums and the Condo Rider

Every condominium purchase contract in Florida includes a condo rider addendum that gives the buyer specific rights during the transaction. Under Florida law buyers have the right to receive the condo documents within a specific timeframe after contract execution and have a review period during which they can cancel the contract for any reason related to the documents and receive a full refund of their deposit. The documents a buyer has the right to review include the declaration of condominium, the association bylaws and rules, the most recent year end financial statements, the current year budget, the SIRS report, the master insurance policy, board meeting minutes, and any pending or threatened litigation. What most sellers do not realize is that a buyer's attorney or a sophisticated buyer's agent reviews these documents specifically looking for red flags. Underfunded reserves, pending special assessments, litigation, delinquent dues, insurance gaps, and unresolved building violations are all red flags that can cause a buyer to cancel during the document review period. By the time you discover the problem you have already lost weeks of market time and your home is no longer a fresh listing. The time to understand what is in your condo documents is before you list, not after you go under contract. This is not something you want to figure out on your own.

Reserve Funding and Special Assessments

Reserve funding is one of the most scrutinized variables in any South Florida condo sale. A fully funded reserve means the association has set aside adequate funds to cover the anticipated repair and replacement of major building components without the need for special assessments. An underfunded reserve means the association does not have enough money to cover anticipated expenses and will either need to levy a special assessment against unit owners or take out a loan. For sellers an underfunded reserve is a liability that sophisticated buyers will price into their offer or use as a reason to walk away entirely. A pending special assessment is even more problematic. When a special assessment is pending or has been approved by the board it must be disclosed to buyers and it directly affects the net proceeds a seller walks away with. Sellers who are aware of their building's reserve funding status and any pending assessments before they list can make informed decisions about timing, pricing, and whether to address the assessment before going to market. Sellers who discover this information mid-transaction have no good options. The right agent identifies these issues before you list so you are never caught off guard.

Current Year Budget

The current year operating budget of the condominium association is a document every buyer has the right to review and every seller should understand before they list. The budget tells a buyer how the association is managing its finances, whether monthly fees are adequate to cover operating expenses, and whether a fee increase is likely in the near future. A budget that shows the association operating at a deficit, drawing from reserves to cover operating expenses, or carrying significant delinquencies in HOA dues collection is a red flag that experienced buyers and their agents recognize immediately. Sellers who understand their association's budget before they list are better positioned to anticipate buyer concerns and address them proactively. Sellers who have never looked at their association's budget before going to market are leaving themselves exposed to questions they cannot answer and buyers who use that uncertainty as leverage.

Financial Statements

The association's most recent year end financial statements are required to be provided to buyers as part of the condo document package. These statements give buyers a detailed picture of the association's financial health including income, expenses, reserve balances, and any outstanding liabilities. A professionally prepared and audited financial statement from a well managed association is a selling point. Unaudited financials, significant operating deficits, depleted reserves, or large accounts receivable from delinquent unit owners are all warning signs that will raise questions during due diligence. Sellers in buildings with strong financials should make sure those financials are current and available before going to market. Sellers in buildings with financial challenges need to understand exactly what buyers will see and price accordingly. This is not information most sellers have access to or know how to interpret without guidance from someone who has been through this process many times.

Master Insurance Policy

Every condominium association is required to maintain a master insurance policy that covers the building structure and common areas. For condo sellers the master insurance policy is a document that buyers and their lenders scrutinize carefully. The policy must provide adequate coverage for the replacement cost of the building and must meet the requirements of conventional lenders including Fannie Mae and Freddie Mac. A master policy with inadequate coverage, significant exclusions, a very high deductible, or gaps in windstorm or flood coverage can create financing complications that eliminate conventional buyers from your buyer pool. Florida's insurance market has made building level coverage increasingly expensive and increasingly difficult to maintain at levels that satisfy lender requirements. Sellers who do not know whether their building's master policy meets current lender standards may find out for the first time when a buyer's lender flags the issue during underwriting — after you are already under contract and the clock is running. Knowing your building's insurance status before you list is not optional in today's South Florida market.

Condo Association Approval Process

Many condominium associations in South Florida require board approval for new buyers before a sale can close. The approval process varies significantly by building. Some associations require a simple application and background check that can be completed in days. Others require an in person interview, a credit check, financial statements from the buyer, and a board vote that may only happen once a month. An approval process that takes 30 to 45 days or longer can complicate your closing timeline significantly particularly if your buyer has a rate lock expiration or a simultaneous closing on another property. Sellers who understand their association's approval requirements and timeline before they list can factor that into their contract negotiations and avoid surprises that push closings past agreed upon dates. An agent who has closed transactions in your specific building or community will know exactly what the approval process looks like and how to set accurate expectations with buyers from the beginning.

FHA and Conventional Financing Eligibility

Whether your condominium building is approved for FHA or conventional financing is one of the most significant variables affecting your buyer pool and one that most sellers never think about before they list. FHA condo approval is granted by HUD at the project level meaning the entire building must be on the HUD approved condominium list in order for any buyer to use FHA financing to purchase a unit in that building. If your building is not FHA approved every buyer who needs FHA financing is eliminated from your buyer pool before the first showing regardless of how well qualified that buyer is personally. Conventional financing through Fannie Mae and Freddie Mac has its own project approval requirements including owner occupancy ratios, HOA delinquency rates, reserve funding levels, litigation status, and insurance requirements. A building that does not meet conventional lending guidelines limits your buyer pool to cash buyers only. In markets where cash buyers are abundant that may not significantly affect your price. In markets where the majority of buyers require financing it can have a dramatic effect on both your days on market and your final sale price. Knowing your building's financing eligibility status before you list is essential information that your listing agent should be able to provide before you make any decisions about timing or pricing.

Rental Restrictions

Rental restriction policies vary significantly across South Florida condominium buildings and they have a direct effect on your buyer pool. Buildings that allow short term rentals attract investors and vacation buyers who are willing to pay a premium for income producing flexibility. Buildings that restrict rentals to minimum one year lease terms or that limit the percentage of units that can be rented at any given time effectively eliminate the investor buyer pool and limit sales to owner occupants and second home buyers. Sellers in buildings with restrictive rental policies need to understand that their buyer pool is narrower and price their unit accordingly. Sellers in buildings with flexible rental policies have access to a broader and often more aggressive buyer pool that includes investors who may compete against each other for the right property. Knowing your building's rental restriction policy before you list and understanding how it affects your buyer pool is a conversation every South Florida condo seller should have with their agent before making any decisions about timing or price.

Pet Policy

Pet policies vary significantly across South Florida condominium buildings and they affect your buyer pool more than most sellers realize. Some buildings allow pets with no restrictions. Others limit pets by size, breed, or number. Some buildings prohibit pets entirely. A building that prohibits pets or that has significant restrictions eliminates every buyer who owns a pet that does not meet the building's requirements. In a market where a large percentage of buyers own pets that restriction can meaningfully narrow your buyer pool. Sellers should know their building's current pet policy before they list because it is one of the first questions buyers ask and an agent who does not know the answer immediately loses credibility with the buyer's agent on the other side of the transaction.

Pricing a Condo in South Florida

Pricing a condominium in South Florida is fundamentally different from pricing a single family home and the differences matter more than most sellers understand going in. In a single family home pricing is driven primarily by square footage, lot size, condition, and location. In a condominium those variables matter but they are secondary to building level factors that can make two identical units in the same building worth dramatically different amounts. Floor level affects value in almost every condo building in South Florida. Higher floors command premium pricing for view, privacy, and reduced noise. In beachfront buildings the difference between a ground floor unit and a top floor oceanfront unit can be hundreds of thousands of dollars even at identical square footage. View orientation matters enormously. An ocean view unit and a parking lot view unit in the same building are not comparable properties regardless of what they share in terms of floor plan and finishes. Building financial health affects value directly. A unit in a building with fully funded reserves, a compliant SIRS report, a current 40 year recertification, and a clean master insurance policy is worth more than an identical unit in a building with financial or compliance issues because the buyer pool is larger and the financing options are broader. Condition and level of updating matter but they matter less in the condo market than in the single family market because buyers in most condo price ranges are more focused on building health and monthly costs than on finishes. According to Redfin 71% of licensed agents did not close a single transaction in 2025. Pricing expertise in the South Florida condo market is not something most agents have developed. Getting the price wrong in either direction costs sellers time, money, or both.

What Are the Most Frequently Asked Questions Buyers Ask When Inquiring About a Condo?

When a qualified buyer or their agent inquires about a condo listing in South Florida these are the questions that come up in almost every transaction. Sellers who know the answers to all of these questions before they list are in a fundamentally stronger position than those who discover the answers mid-transaction.

Is the building FHA approved and eligible for conventional financing?
Has the building completed its milestone inspection?
Has the building completed its 40 year recertification?
Does the building have a compliant SIRS report and fully funded reserves?
Are there any pending or upcoming special assessments?
What are the monthly HOA fees and what do they cover?
Is the master insurance policy current and does it meet lender requirements?
What is the rental policy — is the building investor friendly, what is the minimum lease term, and is board approval required?
What is the pet policy — are pets allowed, how many, what breeds, and is there a weight limit?
What is the buyer approval process and how long does it take?

If you cannot answer every one of these questions about your building right now you are not ready to list. The right listing agent will have these answers before your home ever goes to market.

Selling a condo in South Florida is more complex than most sellers realize until they are already in the middle of a transaction. The issues that derail condo sales — milestone inspection compliance, underfunded reserves, financing eligibility, pending assessments, document red flags — are all discoverable before you list if you are working with an agent who knows what to look for. I have represented condo sellers across Palm & Broward County at every price point and in every type of market. If you own a condominium in South Florida and are thinking about your options the right first step is a conversation with someone who understands this market at the building level, not just the city level. Call or text 954.882.8900 to schedule a consultation. This service is free and there is no obligation to list your home.

More Seller Resources

How to Choose a Real Estate Agent — The specific questions to ask before you sign a listing agreement, including the one disqualifying question that saves you from wasting time with the wrong agent.

What's My Home Worth — Get an honest picture of where your home stands in today's market based on the specific variables that actually affect its value. Not an algorithm. A real analysis.

Home Seller FAQs — Answers to the most common questions about selling a home in Fort Lauderdale and surrounding South Florida communities.

Selling a Condo in South Florida — Everything a South Florida condo seller needs to know before they list including milestone inspections, reserve funding, HOA financials, financing eligibility, and pricing strategy.

Pricing Your Fort Lauderdale Home — Why the first 14 days on market are your most powerful window and how getting the price wrong costs sellers money before the first showing ever happens.

Preparing Your Home to Sell in Fort Lauderdale Florida — Which preparation decisions protect your equity and which ones cost more than you recover at closing.

Seller Resources — The complete hub for seller guides, tools, and resources for Fort Lauderdale and Plantation homeowners preparing to sell.

Cash Offer — Find out what your South Florida home would sell for in a cash transaction and whether a cash offer makes sense for your specific situation.

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