In 2025, Florida introduced new legislation aimed at addressing Condominium concerns and, as such, resulted in significant changes to the FAR/BAR Condominium Rider (“Rider”). The Rider is an essential addendum to the FAR/BAR Residential Contract for Sale and Purchase (“Florida Contract”) when buying or selling a condo unit. It outlines buyer rights, association disclosures, and timelines for review. With new Florida legislation now in effect, as of July 1, 2025, all parties involved in preparing and signing the Florida Contract must understand how these updates influence their due diligence and the transactional process.
Key Changes to the Rider
- Extended Review Period for Condo Documents
Buyers’ review period for condominium documents changed from 3 days to 7 days after receipt. This gives buyers more time to examine budgets and financial reports, understand fully all rules and regulations, and review all inspection reports. Agents should calendar these timelines and guide their Buyers in thoroughly reviewing these documents.
- Reserve and Inspection Transparency
The 2025 condo legislation in Florida triggered new terminology to the Rider. Terms such as “Milestone Inspection”, “Turnover Inspection”, and “Structural Integrity Reserve Study”, where introduced to the Rider. Agents should educate themselves to these terms and their meaning by referring to Florida Statutes 553.8992(a) (Milestone Inspections), 718.301(4)(p) (Turnover Inspections), and 718.103(28) (Structural Integrity Reserve Study). Associations also must now register online with the Division of Condominiums and disclose these kinds of reports and their reserve funding status. You can visit: Division of Florida Condominiums, Timeshares & Mobile Homes – MyFloridaLicense.com for more information. These reports and disclosures will appear in the documents provided under the Condominium Rider, making due diligence more comprehensive.
- Special Assessments
Unrelated to the legislative changes, the board members of the FAR/BAR also instituted changes to how special assessments are treated. Note that selections need to be made for special assessments levied prior to the effective date and for those levied after the effective date of the contract. It is important for Agents to adequately explain the differences in these options. The wrong selection could result in unexpected and significant costs for their clients.
Practical Tips for Agents and Clients
- For Buyers: Use the extended review period to scrutinize reserve studies and inspection reports. Ask about any deferred reserve funding or pending repairs.
- For Sellers: Prepare yourself to fully inform your listing agent about the Association documents and reports. Ensure all required documents are current and accurate. Disclose any association plans for loans, grants, or major projects.
- For Agents: Familiarize yourself with the updated FAR/BAR Condominium Rider and advise clients on how these changes affect their rights and obligations.
- For all Parties: Consult with a real estate attorney to provide advice and guidance with the regulations and the Florida Contract.
In Summary
The updated laws aim to balance safety with financial feasibility for condo owners and associations. For real estate professionals, understanding these changes, and how they integrate with the Condominium Rider, is essential for smooth, compliant transactions.