Condominium Termination Process Information
Condominium termination is pursued when: the building has reached the end of its useful life (the cost of repair exceeds the value of the units), a developer wants to acquire and redevelop the property, the owners want to sell the entire property to a single buyer, or the community is no longer viable as a condominium (declining unit values, high vacancy, and deteriorating conditions). Effect: the condominium form of ownership is terminated, all units are merged into a single parcel, the unit owners receive their share of the sale proceeds (based on their ownership percentage), and the association is dissolved.
Florida Legal Definition
Condominium termination in Florida is governed by: Florida Statutes §718.117 (Termination of Condominium). Under §718.117(1): a condominium may be terminated by: a plan of termination approved by at least 80% of the total voting interests (unless the declaration specifies a different percentage). Under §718.117(3): the plan of termination must include: the effective date, the disposition of the common elements and units, the distribution of the proceeds, and the rights of dissenting unit owners. Under §718.117(6): a dissenting unit owner whose share of the net proceeds is less than the fair market value of their unit may petition the court for a judicial appraisal. Under §718.117(11): the termination must be recorded in the official records.
How It's Used in Practice
Attorneys manage condominium terminations for developers, associations, and unit owners. For developers, the attorney: structures the acquisition (assembling the required 80% voting interest), prepares the plan of termination, conducts the vote, records the termination, and distributes the proceeds. For unit owners, the attorney: evaluates the plan of termination (ensuring fair distribution), negotiates on behalf of the owner (seeking maximum value), exercises the dissent rights (petitioning for judicial appraisal if the share is below FMV), and ensures compliance with the statutory requirements. The attorney advises: condominium termination is a complex process with significant financial and legal implications; all parties should retain experienced counsel.
Key Takeaways
- Requires 80% unit owner vote (§718.117(1)).
- Plan must include: effective date, distribution, and dissent rights.
- Dissenting owners may petition for judicial appraisal of FMV.
- Termination must be recorded in official records.
- Common when building reaches end of useful life or for redevelopment.
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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