By Andy B. Cooper — Florida Licensed Real Estate Broker, SFR Certified · Cabana West Real Estate
In Palm Beach County it's hard to find a newer home that isn't part of some kind of association. Gated communities in Wellington, townhome neighborhoods in Royal Palm Beach and high-rise condos in West Palm Beach all come with one. But an HOA and a condo association are not the same thing, and the difference affects what you own, what you pay and what rules you live by.
Two different laws
Florida regulates them under separate chapters of the Florida Statutes:
- Condominium associations fall under Chapter 718.
- Homeowners' associations fall under Chapter 720.
The distinction isn't just about building type. It's about what you own.
What you own
In a condominium, you own your unit plus an undivided share of the common elements, such as the roof, hallways, pool and grounds. The association maintains and insures much of the building, which is why condo fees tend to be higher.
In an HOA community, you usually own your house and the lot it sits on. The association owns and maintains common areas like the entrance, roads, clubhouse or lakes, and enforces the community's covenants. You insure and maintain your own home.
Some townhomes are condominiums and some are HOA properties. You can't tell by looking. The recorded documents decide it, so always check.
What the fees usually cover
Condo fees often include building insurance for common elements, exterior maintenance, reserves, sometimes water, trash and cable, and amenities. HOA fees often cover common area maintenance, security gates, landscaping of common areas and amenities, while your own roof, exterior and insurance are on you.
Comparing a $900 condo fee to a $250 HOA fee isn't apples to apples. Add your own insurance and maintenance on the HOA home before deciding which is cheaper. Our mortgage calculator has fields for HOA fees, insurance and repairs so you can compare real totals.
Disclosures before you sign
HOA communities
Under section 720.401, a prospective buyer in a community subject to an HOA must be presented a disclosure summary before signing the contract. If it isn't provided, the buyer may void the contract by written notice within 3 days after receiving the disclosure summary or before closing, whichever comes first. The statute says any purported waiver of that right has no effect.
Condominiums
On a resale condo, section 718.503(2) requires the seller to provide documents such as the declaration, articles, bylaws and rules, the annual financial statement and budget, the Frequently Asked Questions and Answers document, and, where applicable, milestone inspection and structural integrity reserve study information. The buyer can cancel within 7 days, excluding weekends and legal holidays, after signing and receiving them. Our article on buying a Florida condo after the new safety laws explains those reports.
Rules that affect daily life
Associations can regulate a lot more than paint colors. Before you buy, read the rules on:
- Rentals, including minimum lease terms and approval processes.
- Pets, including number, size and breed limits.
- Parking, trucks, boats, trailers and commercial vehicles.
- Exterior changes, fences, pools, solar panels and landscaping.
- Home businesses and short-term rentals.
- Guest policies and amenity use.
If you plan to rent the property, the rental rules can make or break the investment. See our landlord guide for the rest of that picture.
Approval to buy or rent
Many condo associations and some HOAs require an application and approval before a sale or lease. That can involve background checks, interviews or fees, and it takes time. Build it into your contract timeline, especially if you're relocating.
Questions to ask before you buy
- Is this a condominium or an HOA, according to the recorded documents?
- What exactly do the fees cover, and how have they changed over the last few years?
- Are there special assessments, planned or pending?
- How healthy are the reserves?
- Is the association involved in litigation?
- What approval is needed to buy or to rent?
Which is right for you?
If you want low exterior maintenance and don't mind higher fees, a condo can be ideal. If you want more control over your own home and yard, an HOA community might fit better. Wellington neighborhoods such as Isles at Wellington and Olympia each have their own documents, amenities and rules, so read them for the specific community before you make an offer. We're happy to help you compare. Get in touch in English or Spanish.
FAQ
Q: What's the difference between an HOA and a condo association in Florida?
Condo associations are governed by Chapter 718 and owners share common elements of the building; HOAs are governed by Chapter 720 and owners usually own their home and lot while the association manages common areas.
Q: Can I cancel if I didn't receive the HOA disclosure summary?
Under section 720.401, the buyer may void the contract by written notice within 3 days after receiving the disclosure summary or before closing, whichever comes first.
Q: Why are condo fees higher than HOA fees?
Condo fees often cover building insurance, exterior maintenance and reserves for shared structural components that HOA owners pay for individually.
Andy B. Cooper is a Florida Licensed Real Estate Broker, SFR Certified, with Cabana West Real Estate, serving Wellington, Palm Beach County, and all of Florida. Cabana West is a bilingual (English/Spanish) brokerage.
Disclaimer: This article is general educational information, not legal, tax, insurance or financial advice. Laws and requirements change. Confirm details with the official sources linked above and with a licensed professional before acting.