What Is Condominium Termination?
Most people assume that once a building is converted into a condominium, it remains a condo forever. That is not true. Under Florida Statute 718.117, a condominium can be legally "terminated" (also called "bulk buyout" or "deconversion"). When a condo is terminated, the individual unit ownership is abolished, the Condo Association is dissolved, and the entire building is reconverted into a single asset owned by one buyer (usually a massive real estate developer).
Why Developers Pursue Termination
Condo termination is a strategy aggressively used in Florida's hottest real estate markets. A developer identifies an aging, 50-year-old, 100-unit oceanfront condo building. The building is outdated, the reserve fund is depleted, and the unit owners are facing a $5 million roof assessment. The developer approaches the owners with an offer: "I will buy every single unit in the building for above-market prices, demolish it, and build a brand-new luxury tower."
By purchasing enough units to reach the termination threshold, the developer can force the remaining holdout owners to sell, even against their will.
The 80% Threshold
Under Florida Statute 718.117, condo termination requires the approval of at least 80% of the total voting interests (unless the Declaration of Condominium specifies a higher threshold). This means that if a developer acquires 80 out of 100 units, they can vote to terminate the condo. The remaining 20 holdout owners are legally forced to sell their units at fair market value, as determined by an independent appraisal.
Holdout owners who believe the appraised buyout price is unfairly low can file objections with the circuit court, but the termination itself cannot be blocked once the 80% vote is achieved.
Related Terms
- Condominium — The property type being terminated
- Fair Market Value — The standard used to compensate holdout owners
- Eminent Domain — A government-initiated taking, distinct from private condo termination
Barnes Walker Condominium Termination Law
Barnes Walker's condominium attorneys represent both Florida developers pursuing strategic bulk buyouts and individual unit owners fighting unfair termination buyout prices, ensuring strict compliance with Florida Statute 718.117 and protecting our clients' financial interests throughout the termination process. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 718
The Florida Condominium Act governs the creation, operation, and management of condominiums, including buyer rights, association powers, and assessment authority.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC