Southern state hit by mass exodus of condo owners spooked by 'catastrophic' market in wake of costly new law that could 'bankrupt' residents

Daily Mail UK ^ | August 9, 2024 | Bethan Sexton

[Red Badger]

Condo listings in Florida have skyrocketed as desperate owners attempt to dodge a costly new law requiring increased safety checks.

The legislation was brought in following the 2021 collapse of the Champlain Tower South in Surfside, which killed 98 people.

It later emerged that the condo association had postponed crucial repairs to avoid increasing costs, prompting lawmakers to introduced new regulations which take effect at the end of the year.

As a result, the number of condos on the market has soared, especially in southern Florida, prompting warnings of a 'mass exodus.'

There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports.

The figure is an 143 percent leap from the 8,353 in the same period last year. Almost 90 percent of those for sale are in buildings more than 30 years old.

Under the new guidelines, condos older than 30 years or more than three stories will require increased inspections from December 31.

Read More REVEALED: The cities offering the most apartment space on a $1,500 budget article image The cost of insurance and Homeowners' Association fees to cover the special assessment requirements has also jumped.

'Condo costs are shocking,' said Juan Castro, a Redfin Premier agent in Orlando. 'Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It's causing buyers to rethink their plans.'

Arkadiy Kats, 71, already pays $340 a month for a special assessment and $897 a month for monthly condo HOA fees.

Starting next year, he is expected to contribute an additional $731 toward reserves.

He has taken the decision to return to work as a real estate agent to help cover the costs.

[Chgogal]

BTTT

[Rockingham]

I know something about Florida condos. I spent years as a real estate attorney often dealing with condos, years in Tallahassee with close friends who dealt with condo regulation issues as legislative staffers, and years on GOP party staff often called on to research and explain complex statutes and legislative issues.

[xoxox]

But have you ever owned one?

[Rockingham]

Some years ago, I lived in a new condo in south Florida for about a year, and also advised and represented condo associations and developers. Fundamentally, owning a condo never appealed to me because of the forced affiliation of condo living.

[EVO X]

Boo fugging hoo. It sounds to me as if the condo owners did not do any due diligence before buying their condos and are not shocked to discover they bought a piece of Kommie-La housing.

I followed the collapse after it happened. Lots of blame to go around. What was never mentioned is the lack of due diligence by lenders. The condo complex was a beach front condo with 100+ units. Condos were in the million dollar range and higher with a likely regular turnover rate. It was another miss in a long string of failures leading up to the collapse..

[Svartalfiar]

Well if all these prices drop that much, it’ll make insurance cheaper, saving all those companies going bankrupt from the hurricanes!