Why Miami-Dade Condo Owners Are Facing This Right Now
The 2021 collapse of Champlain Towers South in Surfside changed everything for condo owners in Miami-Dade. Florida passed sweeping new legislation requiring milestone inspections and structural integrity reserve studies for condo buildings three stories or taller. The deadline for many buildings to comply has created a wave of special assessments across Miami-Dade County — many of them massive.
Owners in buildings that deferred maintenance for years are now being handed bills for structural repairs, waterproofing, balcony restoration, and reserve funding that can range from $20,000 to well over $150,000 per unit. Many of these owners — particularly retirees and longtime residents on fixed incomes — simply cannot pay.
This is not a niche problem. Hundreds of Miami-Dade condo buildings are working through mandatory repairs and reserve funding right now. If you received a special assessment notice you cannot afford, you are not alone — and you have more options than you may realize.
What Happens If You Don't Pay
Ignoring a special assessment is the one option that makes everything worse. Here is the sequence of events if an assessment goes unpaid in Florida:
- The association sends written notice and a demand for payment
- If unpaid, the association records a claim of lien against your unit with the county clerk
- Once the lien is recorded, the association can begin foreclosure proceedings — separate from any mortgage on the unit
- The association can also pursue a money judgment against you personally
- Late fees and attorney fees compound the original balance quickly
Florida law gives condo associations strong collection tools. The process moves faster than most homeowners expect.
Your Options When You Can't Afford the Assessment
💰 Sell to a Cash Buyer
Fastest exit. No need to pay the assessment upfront. Cash buyer factors it into the offer and handles it at closing. You walk away clean.
📋 Request a Payment Plan
Ask your association board in writing to pay in installments. Not guaranteed but some associations will work with you — especially before a lien is filed.
⚖️ Challenge the Assessment
If the assessment was not properly noticed or voted on per your condo documents, you may have grounds to dispute it. Requires a Florida condo attorney.
🏦 Finance It
Some owners take a personal loan or HELOC to cover the assessment. Only viable if you have equity and credit to qualify. Adds debt but preserves ownership.
Selling With an Unpaid Special Assessment
Selling is a legitimate and often overlooked option. You do not need to pay the assessment before you can sell — you need it resolved at or before closing.
In a traditional sale with a financed buyer, the lender will require the assessment to be paid off before closing. This means it comes out of your sale proceeds — which works if you have enough equity to cover it.
In a cash sale, there is no lender involved. A cash buyer can purchase the unit with the understanding that the assessment balance will be settled at closing as part of the transaction. If the assessment plus your mortgage payoff exceeds the unit's value, there may still be a path forward — but it requires a direct conversation about the numbers.
Either way, selling before a lien is recorded is significantly cleaner than selling after. Once a lien is on the title, the association's attorney fees and costs start adding up and the balance grows.
What to Do Right Now
- Read the assessment notice carefully. Note the due date, the total amount, and whether the association has offered any payment plan options.
- Check your condo documents. Florida condo associations must follow their declaration and bylaws when levying special assessments. If proper procedures were not followed, the assessment may be challengeable.
- Contact the association board in writing. Request a payment plan before the due date — not after. Your chances are better before a lien is filed.
- Get a sense of your unit's current value. If you are considering selling, you need to know whether your equity covers the assessment payoff plus your mortgage payoff.
- Talk to a cash buyer. If the numbers are tight or you simply want out, a cash offer gives you a clear picture of what you would walk away with after everything is settled.
Common Questions
Can a condo association foreclose just for an unpaid special assessment?
Yes. Under Florida Statute 718, a condominium association has the right to lien and foreclose on a unit for unpaid assessments — including special assessments. This is completely separate from your mortgage. The association can pursue foreclosure even if your mortgage payments are perfectly current.
How long does a condo association have to file a lien in Florida?
In Florida, a condo association must record a claim of lien within one year of when the assessment became due. In practice, most associations file much sooner — often within 30 to 90 days of a missed payment. Once the lien is recorded, you have a limited window before foreclosure proceedings can begin.
Can I sell my condo if the association has already filed a lien?
Yes, but the lien must be paid off at or before closing. A title company will not issue clear title with an active condo lien. In a cash sale, the lien payoff — including any attorney fees and costs the association has added — is factored into the closing settlement. You receive the net proceeds after all liens are cleared.
Will a special assessment affect my ability to sell at full market value?
It depends on how the market perceives the building. If the special assessment is for significant structural repairs, buyers and their lenders may be wary of the building regardless of whether you pay it off. Buildings with large pending assessments or ongoing structural issues often see reduced buyer demand and lower offers across the board.
What if the special assessment is for the whole building and I disagree with it?
You can attend board meetings, vote as a unit owner, and if proper procedures were not followed, challenge the assessment through Florida's condominium dispute resolution process or in court. However, challenging an assessment does not automatically suspend your obligation to pay while the dispute is pending. Consult a Florida condo attorney before withholding payment.
Does Acrux Trust, Inc. buy condos with unpaid special assessments in Miami-Dade?
Yes. We buy condo units throughout Miami-Dade — including units with unpaid special assessments, HOA liens, and buildings with ongoing structural issues. We make cash offers within 24 hours and structure deals that account for the assessment. Call (305) 925-2475 or fill out the form on our website to get started.
