On September 28, 2022, Hurricane Ian slammed into Florida’s gulf coast, resulting in numerous deaths and destroying thousands of properties, including many condominiums.
In these circumstances, it is common for local governments to condemn condo buildings if they are deemed unsafe for occupancy.
As condo communities assess their losses, many associations facing condemnation, substantial destruction, and/or costly repairs may consider terminating their condominium.
Florida law permits unit owners to terminate their condominium form of ownership due to economic waste or impossibility. Section 718.117, Florida Statutes, governs condominium termination. Termination often occurs when the repair or reconstruction costs to return a condo building to its original condition far exceed the market value of the building in the first place. For example, unit owners may collectively decide to tear down the condominium entirely and sell the land.
The law provides for the procedure on which to carry out the termination. Nearly all condo declarations provide specific procedures to carry out termination, such as notice and voting requirements. Section 718.117, Florida Statutes also provides certain requirements which the Association must meet, and protections for unit owners. Generally, unit owners are entitled to compensation for the fair market value of their properties and have other rights concerning the calculation of fair market value and mortgages on the property.
Our firm is uniquely experienced in handling condominium termination matters, including helping associations terminate their condominiums and also representing individual unit owners throughout the process. If you are a unit owner or association interested in exploring your condo termination options, please schedule a consultation with our office.
Sources: Photo by Wilfredo Lee/AP
