What Every Florida Condo Owner Should Know About Condominium Terminations

You bought your condominium as a home, an investment, or both. You’ve paid your assessments, followed the rules, and put down roots. Then one day you receive a notice: the condominium association is considering terminating the condominium. What does that mean — and what happens to you?

Condominium terminations have become an increasingly significant issue in Florida, particularly as aging buildings face mounting repair costs under post-Surfside safety mandates, developers eye prime coastal real estate, and funding requirements imposed by recent legislation have made continued operation financially daunting for some communities. Understanding your rights under Florida law is essential before you sign anything or assume the outcome is out of your hands.

What Is a Condominium Termination?

A condominium termination is the legal process by which a condominium form of ownership is dissolved. Once terminated, the individual unit ownership structure ceases to exist. The property either transfers to a successor entity — typically a developer or investor who purchases the entire building — or it is sold and the proceeds are distributed among unit owners.

This is different from a single unit being sold. A termination eliminates the condominium regime entirely, affecting every owner simultaneously.

How Does a Termination Happen Under Current Florida Law?

Florida’s Condominium Act, §718.117 of the Florida Statutes, governs terminations. The statute draws an important distinction between two types of termination, and that distinction has significant consequences for your rights.

Type 1: Termination for Economic Waste or Impossibility (§718.117(2))

The statute permits termination under a lower approval threshold when:

• The total estimated cost to restore or repair the improvements — or bring them into compliance with applicable laws and regulations — exceeds the combined fair market value of all units after the work is completed; or
• It has become legally impossible to operate or reconstruct the condominium in its prior configuration due to land use laws or regulations.

When either of those conditions is met, the plan of termination may be approved by the lesser of: (a) the lowest percentage of voting interests required to amend the declaration, or (b) whatever the declaration itself provides for termination approval. This can, in practice, be a significantly lower threshold than the 80% required for optional terminations (discussed below).

This is the pathway most likely to be invoked when associations face extraordinary repair costs under the post-Surfside structural integrity requirements — and it can bind dissenting owners at a lower vote threshold.

Type 2: Optional Termination (§718.117(3))

An optional termination — one not driven by economic waste or legal impossibility — requires a higher threshold of approval and is subject to additional Division oversight. Under the current statute:

• At least 80% of the total voting interests must approve the plan of termination.
• However, if 5% or more of the total voting interests reject the plan — either by negative vote or written objection — the plan cannot proceed, even if 80% approved it.
• If rejected at the 5%-or-more threshold, no new plan of termination under this subsection may be considered for 24 months from the date of rejection.
• The plan must then be submitted to and approved by the Florida Division of Condominiums, Timeshares, and Mobile Homes, which examines the plan for procedural compliance. The Division has 45 days to identify deficiencies or accept the filing; if it fails to respond within that window, the plan is presumed accepted.

THE 5% VETO RIGHT IS CRITICALLY IMPORTANT AND OFTEN OVERLOOKED. IF YOU AND YOUR NEIGHBORS REPRESENTING AT LEAST 5% OF THE VOTING INTERESTS FORMALLY OBJECT IN WRITING, YOU MAY BE ABLE TO STOP A TERMINATION IN ITS TRACKS — AT LEAST FOR TWO YEARS.

What Should You Do If Your Condominium Is Facing Termination?

1. Don’t ignore the notice. Deadlines in termination proceedings are real and can affect your rights permanently.
2. Attend all owner meetings where the termination plan is discussed and ask questions.
3. Request and review the full plan of termination — including all sworn disclosures — before any vote is held.
4. Get your own independent appraisal of your unit from a licensed Florida appraiser.
5. Exercise your 5% veto right if applicable. If you and neighbors representing at least 5% of the voting interests oppose the plan, file formal written objections. This can stop an optional termination for 24 months.
6. Review your declaration’s termination language. The Biscayne 21 ruling may give you stronger rights than the statute alone provides.
7. Consult an attorney before you vote or sign anything. Plans of termination often contain releases or waivers with lasting legal consequences.
8. Coordinate with other unit owners. Organized dissenting owners are in a far stronger negotiating position than isolated individuals.

We’re Here to Help

Condominium terminations involve complex intersections of property law, contract rights, constitutional protections, and evolving case law. If your condominium association has announced a termination or you’ve received notice of a proposed plan, you should not navigate that process alone.

Our firm represents Florida condominium unit owners in termination proceedings, valuation disputes, and related real property matters. Contact us today at (561) 609-3190 for a consultation to understand your rights and your options.

JONATHAN C. CHANE, Partner at Chane Socarras, PLLC; Tel. (561) 609-3190 | www.cslawfl.com | Email: jchane@cslawfl.com

This blog post is provided for general informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship. Laws and regulations change frequently, and this post may not be updated. If you have a specific legal situation, please call us or consult with a qualified Florida attorney.