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lorida's legislature has a long history of protecting buyers of Florida real estate. Prior to the 1985 case of Johnson v. Davis, the common law principle of caveat emptor (buyer beware) applied, leaving buyers with little protection. However, the court's decision ended this practice in residential sales, requiring sellers to disclose known facts affecting property value that are not observable or known to the buyer.

    The Florida Condominium Act of 1963 was enacted to regulate condominium development and sales, with subsequent revisions adding protections for owners and purchasers. The most recent changes were prompted by the 2021 collapse of the Champlain Towers South Condominium in Surfside, Florida. As a result, statutes now mandate milestone inspections for condominiums and co-ops over three stories tall every 25 or 30 years, depending on proximity to the coastline.

    Associations must update these inspections every 10 years and reserve funds for structural repairs, which cannot be waived. A deadline of December 31, 2024, has been set for completing these inspections. The new law is expected to result in significant expenses for condominium owners, including inspection costs, reserves, and repairs.

    To inform buyers about the potential expenses, the legislature mandated that sales contracts include a right to terminate within three days after receiving the structural inspection report and reserve study. This applies to all residential condominium sales contracts signed after December 31, 2024. The law also requires new condominium developers to provide a turnover inspection report when control of the owner's association is transferred.

    The legislature has also addressed property insurance concerns by requiring sellers to complete a "Flood Disclosure" form and provide it to buyers at or before signing the sales contract, starting October 1, 2024. This disclosure informs buyers about the need for separate flood insurance coverage.

    These new protections are expected to increase transparency in Florida real estate transactions, benefiting both buyers and the industry as a whole. The legislature's efforts aim to minimize fears associated with buying a home in Florida, particularly regarding structural integrity and flood risks.