Florida Statute 718.301: Condominium Developer Turnover, Audits and Inspection Reports

Quick Answer

Section 718.301 of the Florida Statutes governs when a condominium developer must hand control of the association to the unit owners, what the developer must deliver at turnover, and how the association may bring defect claims against the developer. Owners other than the developer can elect at least one-third of the board once they own 15 percent of the units, and at least a majority on the first of seven listed events to occur.

The key practical point: the turnover package now includes a turnover inspection report and a structural integrity reserve study, and the financial records must be audited by an independent CPA back to the association's incorporation.

At a Glance

What the Law Says

When owners elect directors

If owners other than the developer own 15 percent or more of the units that will ultimately be operated by the association, they may elect at least one-third of the board. They may elect at least a majority on the first to occur of:

• three years after 50 percent of the units have been conveyed to purchasers;
• three months after 90 percent of the units have been conveyed;
• when all units are completed, some are conveyed, and none of the others are being offered for sale by the developer in the ordinary course of business;
• when some units are conveyed and none of the others are being constructed or offered for sale in the ordinary course;
• when the developer files a bankruptcy petition;
• when a circuit court appoints a receiver for the developer who is not discharged within 30 days, unless the court finds within 30 days that transfer would be detrimental; or
• seven years after the recording of the surveyor and mapper certificate under s. 718.104(4)(e), or recording of a deed not accompanied by a recorded assignment of developer rights, whichever occurs first (with variations for multi-condominium and phase associations).

The developer keeps the right to elect at least one director while it holds for sale in the ordinary course at least 5 percent of the units in condominiums with fewer than 500 units, and 2 percent in condominiums with more than 500 units.

Election and turnover timing

Within 75 days after owners become entitled to elect a director, the association "shall call, and give not less than 60 days' notice of an election." Any unit owner may give the notice if the association fails to. When owners elect a majority, the developer "shall relinquish control," and must deliver the association's property "at the developer's expense," simultaneously or, for the financial records in paragraph (c), "not more than 90 days thereafter."

What the developer must deliver

Subsection (4) lists items including the recorded declaration, articles, bylaws, minute books, resignations of developer directors, association funds, tangible personal property with an inventory, plans and specifications with a certificate, a list of contractors, subcontractors and suppliers, insurance policies, certificates of occupancy, permits, warranties, an owner roster, leases and contracts. Several items deserve emphasis:

• Audited financials. Records from incorporation through turnover "must be audited" by an independent CPA, under generally accepted accounting and auditing standards, with examination of disbursements and paid invoices and of whether the developer paid the proper assessments.
• Turnover inspection report (paragraph p). Under seal of an architect or engineer, or a person certified as a reserve specialist or professional reserve analyst, "consisting of a structural integrity reserve study" covering roof, structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, and windows and exterior doors, "notwithstanding when the certificate of occupancy was issued or the height of the building."
• Additional report (paragraph q). A turnover inspection report on elevators, heating and cooling, pool or spa, seawalls, pavement and parking, drainage and irrigation.
• Surveyor certificate and current study. A copy of the recorded surveyor and mapper certificate or the qualifying instrument (paragraph r), and the association's most recent structural integrity reserve study (paragraph s).

Developer responsibility and defect claims

Before turnover, a violation of the Condominium Act by the association is the developer's responsibility, and actions of developer-designated directors "are considered actions taken by the developer." Subsection (7) provides that in a claim against a developer alleging a design, structural, mechanical, electrical, fire protection, plumbing or similar defect requiring a licensed professional, the defect "must be examined and certified by an appropriately licensed Florida engineer, design professional, contractor, or otherwise licensed Florida individual or entity."

What This Means in Practice

For boards after turnover

Our reading: the list in subsection (4) works as a turnover audit checklist. A transition team can compare what was delivered to each lettered item and document gaps in writing. Pre-turnover board actions are attributed to the developer, which matters when reviewing prior decisions.

For owners before turnover

Owners, not just the association, may call the first owner-election notice if the association fails to, and the 60-day minimum notice is a floor stated in the statute.

Deadlines and notice math

Owner entitlement date plus 75 days is the latest date to call the election, and the election must be on at least 60 days' notice. Financial records are due no later than 90 days after turnover. We did not find a stated penalty for missing the 75-day call, other than the owner's right to give notice.

What the statute does not say

• It states no dollar penalty for failing to deliver items.
• Whether a defect claim also triggers the Chapter 558 pre-suit process is governed by that chapter; see our Chapter 558 page.
• Subsection (8) lets the division adopt rules; we did not review any.

Timeline

We did not trace which amendment added which paragraph.

Related Florida Law

• Chapter 718, Condominium Act
• Structural integrity reserve study, § 718.112
• Chapter 558, construction defects
• SB 4-D (2022)
• SB 154 (2023)
• HB 913 (2025)
• HB 255 (2026), failed turnover bill
• Chapter 719, cooperatives (s. 719.301)

Board Checklist

• Track the conveyance percentages and dates that trigger each owner-election right.
• Calendar the 75-day call and 60-day notice deadlines from the date owners become entitled to elect.
• Collect each item in subsection (4) and record what was delivered and what is missing.
• Confirm the audit covers the association's life from incorporation, and that it tests developer assessment payments.
• Obtain the turnover inspection reports and the structural integrity reserve study.
• Preserve warranties and contractor lists before any defect claim.
• Have licensed Florida professionals examine and certify any alleged defect.
• Ask counsel about Chapter 558 notice before suit.

Frequently Asked Questions

When do owners get a majority of the board in Florida?

On the first of the events in 718.301(1)(a) to (g), such as three years after 50 percent of units are conveyed or three months after 90 percent are conveyed.

Does the developer keep any board seat after turnover?

It may elect at least one director while it holds for sale in the ordinary course at least 5 percent of units (fewer than 500 units) or 2 percent (more than 500 units).

What financial records must the developer deliver?

Financial statements and source documents from incorporation, audited by an independent CPA, due not more than 90 days after turnover.

Is a reserve study part of turnover?

Yes. Paragraph (p) requires a turnover inspection report consisting of a structural integrity reserve study, and paragraph (s) requires the most recent study.

Who can call the first owner election?

The association must call it within 75 days, but "any unit owner" may give the notice if the association fails to.

Who must certify a defect claim against a developer?

An appropriately licensed Florida engineer, design professional, contractor, or other licensed Florida individual or entity.

Where This Comes From

We read the full current text and History line of Fla. Stat. § 718.301 and the parallel § 719.301 on the Florida Legislature's Online Sunshine site. The official text is at leg.state.fl.us. We did not read the enrolled amending bills line by line.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Florida attorney before acting.