Florida statute reference · F.S. § 718.111
§ 718.111 - The Association: Powers, Duties & Records
Section 718.111 is the structural backbone of every Florida condominium association. It defines what the association is as a corporate entity, what powers the board can exercise, what fiduciary duty directors owe to members, and what records owners are entitled to inspect. Most disputes between an owner and a board ultimately map back to a question this section answers.
Reviewed by the Common Elements editorial team, which includes a Florida-licensed community association manager (LCAM) and insurance broker - Florida Licensed Community Association Manager, 2-20 & 6-20.
What boards need to know
Florida condominium associations are not informal neighbor groups - they are corporations organized under Chapter 617 (Florida Not-for-Profit Corporation Act) and regulated by Chapter 718. § 718.111 sits at the intersection of those two worlds. It grants the association the corporate powers it needs to operate (contracts, employment, property ownership, lending, borrowing), and it imposes the duties that come with those powers (insurance, records, fiduciary care).
The board acts on behalf of the association as its governing body. Directors owe the association a fiduciary duty - the same duty a corporate director owes shareholders. They must act in good faith, on an informed basis, and in what they reasonably believe is the association's best interest. § 718.111(1)(d) codifies the business judgment rule: a director who exercises ordinary care is not personally liable for a decision that turns out badly. Gross negligence, fraud, criminal conduct, and self-dealing are the lines that, once crossed, strip away that protection.
The insurance subsection - § 718.111(11) - is one of the most frequently litigated parts of Chapter 718. The association insures the building “as originally constructed,” including the units. Unit owners insure improvements, betterments, and personal property (HO-6 policies). Post-Ian, most associations have discovered they were under-insured for full replacement cost. Make sure your master policy carrier and broker have done a current replacement-cost appraisal - and that it's documented for the next renewal cycle.
Owner records access lives at § 718.111(12). The 10-business-day clock starts when the association receives a written records request. Missing the deadline creates a rebuttable presumption that the failure was willful, and can expose the association to damages and attorney's fees under § 718.111(12)(c). Log every request and document your response timeline.
Key requirements
Corporate powers and the fiduciary standard
§ 718.111(1)- Association is a Florida not-for-profit corporation (Chapter 617)
- Board has authority to contract, sue, employ, and acquire property
- Directors owe fiduciary duty: good faith, informed basis, best interest of association
- Business judgment rule applies under § 718.111(1)(d)
- Self-dealing, fraud, gross negligence, and criminal acts strip protection
Mandatory insurance coverage
§ 718.111(11)- Property insurance on common elements and units as originally constructed
- Full replacement cost - get a current appraisal
- Liability insurance for the association
- Fidelity bond or insurance for anyone handling association funds
- Directors and officers (D&O) insurance for the board
Official records: 10-business-day inspection right
§ 718.111(12)- Association must provide access within 10 business days of written request
- Records can be provided electronically with owner consent
- Records must be maintained for 7 years
- Late delivery = rebuttable presumption of willful non-compliance
- Member can recover actual damages plus attorney's fees
Financial reporting tiers
§ 718.111(13)- Under $150K: cash receipts and expenditures report
- $150K–$299,999: compiled financial statement
- $300K–$499,999: reviewed financial statement
- $500K+: audited financial statement (CPA-prepared)
- All due within 90 days of fiscal year end
Related tools
Common questions about § 718.111
- What powers does a Florida condo association have under § 718.111?
- Section 718.111 gives the condominium association - operating as a Florida not-for-profit corporation - broad corporate authority to enter contracts, sue and be sued, purchase and sell property, employ personnel, maintain insurance, levy assessments, and impose fines for violations of the governing documents. The association also has the duty to maintain the common elements and condominium property in good condition. All of these powers must be exercised in furtherance of the association's purpose; the board cannot use association funds for unrelated activities.
- What is a Florida condo board member's fiduciary duty?
- Florida courts have consistently held that condominium directors owe a fiduciary duty to the association and its members, equivalent to the duty corporate directors owe shareholders. This means decisions must be made in good faith, on an informed basis, and in what the director reasonably believes to be the best interests of the association. § 718.111(1)(d) codifies the business judgment rule - a director who acts in good faith and exercises ordinary diligence is not personally liable for a business decision that turns out poorly.
- What insurance is a Florida condo association required to carry?
- Under § 718.111(11), the association must maintain (a) property insurance on the common elements and condominium property as originally constructed, (b) liability insurance, and (c) fidelity bonding or insurance covering anyone who controls or disburses association funds. Property insurance must cover full replacement cost. The 2008 amendments clarified that the association insures the building 'as originally constructed,' while unit owners insure improvements, betterments, and personal property. After Hurricane Ian (2022), windstorm coverage adequacy has become a recurring DBPR-complaint topic.
- Are condo board members personally liable for association decisions?
- Generally no, if they act within their fiduciary duty. § 718.111(1)(d) provides that a director is not liable for monetary damages resulting from an action taken or omitted unless the director breached or failed to perform the duties of a director, and that breach constituted gross negligence, fraud, criminal activity, or self-dealing. The association also has the obligation under § 718.111(12)(d) to maintain directors and officers (D&O) insurance, and directors are entitled to indemnification when sued for acts in their official capacity, subject to certain exceptions.
- What financial reports does a Florida condo association have to produce under § 718.111?
- Section 718.111(13) sets tiered financial reporting requirements based on annual revenues. Associations with annual revenues under $150,000 require a report of cash receipts and expenditures. $150K–$299,999 requires a compiled financial statement. $300K–$499,999 requires a reviewed financial statement. $500K and above requires an audited financial statement prepared by a Florida-licensed CPA. All reports must be completed within 90 days of the end of the fiscal year. Owners can vote to require a higher tier than the statutory minimum but cannot vote to fall below it.
Key statutory text
Selected subsections. Full text at Florida Legislature Online.
§ 718.111(1)(d) - Business judgment rule
“An officer, director, or agent shall discharge his or her duties in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he or she reasonably believes to be in the interests of the association.”
Run your Florida condo board on Common Elements
Track meeting notices, manage records requests, organize insurance documents, and stay current on board fiduciary obligations - all in one workspace. Free to start.
This is not legal advice. Consult association counsel for your specific situation.