Your condo association may propose ending the condominium form of ownership. This can raise questions about your unit, property rights and whether you must agree. Florida law sets specific rules for termination, including voting requirements and rights for unit owners.
Can a condo association terminate the condominium?
Termination is not a routine board decision. The voting rules depend on the type of termination. An optional termination of a residential condominium generally requires approval by at least 80% of the total voting interests. But if 5% or more of the total voting interests reject the plan or submit written objections, that type of termination cannot proceed. Other termination types have different rules.
What happens to your condo if termination moves forward?
The plan of termination explains how the property and owners’ interests will be handled. It must state each owner’s share of the sale proceeds. Florida law sets a payment priority for trustee costs, lienholders and association creditors before unit owners receive their share.
Possession and use rights can also change. Unless the plan says otherwise, your right to possess the former unit and use the common elements ends when termination takes effect. Certain leases, occupancy agreements and licenses also end at that time unless the plan provides otherwise.
What if you oppose the termination?
Review the proposed plan of termination and governing documents carefully. Check whether the correct vote was obtained and whether the plan properly allocates sale proceeds. Also check whether the association followed all required procedures.
Florida law provides a limited way to challenge a recorded plan. Unit owners and lienors generally have 90 days from the plan’s recording date to file a petition. The law limits challenges to specific issues, including whether the association obtained the required vote, whether the plan fairly and reasonably apportioned the sale proceeds and whether the parties met certain first-mortgage obligations.
An attorney can review the plan and explain your rights and options under Florida condominium law.
What condo owners should do next?
Get the proposed plan of termination and governing documents from the association. Review how the plan affects your unit, property rights and finances before signing anything. If you have concerns about the vote, sale proceeds or the plan’s terms, get legal advice promptly. Some rights have specific deadlines.
