What Is a Condominium Conversion?
A massive trend in Florida real estate is the conversion of older, rent-controlled or market-rate apartment buildings into condominiums. A developer or building owner buys an entire 100-unit apartment complex, files the required legal documents to convert it, and then sells each unit individually at a massive profit.
The process of condominium conversion is extremely complex and heavily regulated by the Florida Condominium Act (Chapter 718, Florida Statutes). It requires filing a new Declaration of Condominium, creating a Condo Association, and strictly complying with tenant protection laws.
The Florida Conversion Process
- Engineering and Inspection — The developer must hire a licensed engineer to inspect the entire building. A "Converter Reserve Schedule" must be created, detailing the expected remaining useful life of every major component (roof, elevators, plumbing) and the funds required to replace them. This prevents developers from selling crumbling buildings to unsuspecting buyers.
- Filing the Declaration — The developer files a massive legal document (the Declaration of Condominium) with the county Clerk of Court. This document defines the exact legal boundaries of each unit, the common areas, the voting rights of each owner, and the monthly assessment obligations.
- Tenant Protections — This is the most heavily regulated step. Under Florida law, existing tenants must be given a minimum of 180 days' notice before they can be evicted due to the conversion. Tenants with a year or more remaining on their lease can stay until the lease expires. The tenants are also given a right of first refusal to purchase their unit before it is offered to the public.
Why Conversions Are Controversial
Conversions are enormously profitable for developers but devastating for low-income tenants. A developer might buy a 50-unit building for $5 million, spend $2 million on cosmetic renovations, convert it, and sell the individual units for a total of $15 million. Meanwhile, 50 families who were paying affordable rent are displaced.
Related Terms
- Condominium — The end product of the conversion process
- Eviction — The last resort if tenants refuse to vacate after the notice period
- Condominium Rider — The contract addendum required when selling the converted units
Barnes Walker Condominium Law
Barnes Walker's condominium attorneys guide Florida developers through every phase of the conversion process, from drafting the Declaration of Condominium to navigating the strict 180-day tenant notification requirements, ensuring full compliance with Chapter 718 and minimizing litigation risk. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 718
The Florida Condominium Act governs the creation, operation, and management of condominiums, including buyer rights, association powers, and assessment authority.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC