Overview
Florida's condotel disclosure requirements, created by Florida Statute 718.407 and in effect since October 1, 2024, require sellers to give buyers a clear disclosure of how a condo-hotel building's shared spaces are divided, who maintains them, and how those costs get allocated. The statute's formal title is "Condominiums Created Within a Portion of a Building or Within a Multiple Parcel Building," which covers condotels along with other mixed-use structures where the condo only occupies part of a larger building. One important limit: it only applies to condominiums with declarations recorded on or after October 1, 2024, so older condotel buildings may not be covered.
What Is a Condotel?
A condotel is a hybrid between a hotel and a condo. As with a traditional condo, buyers own individual units. But unlike a typical condo, the building's shared spaces — lobbies, pools, gyms — are often controlled and maintained by the building owner or hotel operator rather than a condo association. In Miami, condotels have become a popular vehicle for short-term rental income and investment, but that popularity comes with real complexity around who controls and pays for what.
Why Florida Created This Disclosure Requirement
Confusion and disputes over who maintains shared spaces and how fees get charged led the Florida Legislature to create Section 718.407, effective October 1, 2024, specifically addressing condominiums created within a portion of a larger building. Florida Realtors® updated its standard condominium riders in 2024 to add the required disclosure language for this type of condo.
Key Points of the Law
- Disclosure required: The sale contract must include, in conspicuous type, a disclosure stating the condo was created within a portion of a building or multiple parcel building, and that the common elements consist only of the portions actually submitted to condominium ownership.
- Cost allocation must be disclosed: The declaration must specify which parts of the building are included in the condo, who's responsible for maintaining shared facilities like the roof, exterior, elevators, and lobby, and how those costs are allocated between the condo's unit owners and any other portion of the building not included in the condo.
- Limited buyer control: Even though condotel unit owners typically pay a share of costs for shared facilities, they generally don't have voting control over how those facilities are managed or how costs are set, since those areas often sit outside the condo association's authority entirely.
- Applies going forward, not retroactively: This requirement only applies to condominiums with declarations recorded on or after October 1, 2024. Older condotel buildings created before that date aren't automatically covered.
What This Means for Miami Condotel Buyers
- You may have limited or no say in how shared building areas are run, even while paying a share of the cost.
- Fees tied to those shared areas can change without your input, since they're often outside the condo association's control.
- Not every part of the building you're paying toward may be covered by standard condo protections — meaning fewer legal protections than a typical condo purchase.
The disclosure requirement makes the structure more transparent, but it's still up to buyers and their agents to review the details carefully before signing.
Tips for Buying a Condotel Unit
- Request the full disclosure required under Section 718.407 before making an offer, not after.
- Review the condo declaration closely, especially how fees are calculated and who's responsible for maintaining shared spaces.
- Confirm whether the building's declaration was recorded before or after October 1, 2024, since that determines whether this disclosure requirement applies.
- Hire a real estate attorney if you're unsure what you're signing.
- Work with an agent experienced in condotel transactions specifically, since these deals differ meaningfully from a standard condo purchase.
