Florida statute reference · F.S. § 718.117
§ 718.117 - Termination of Condominium
Section 718.117 governs the rare but high-stakes process of permanently ending a condominium regime. With aging coastal building stock and rising land values in Florida, terminations have become more common. Whether you are a unit owner being approached by a developer, a board evaluating a distressed building, or an attorney advising on the process, § 718.117 is the operative statute.
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 and owners need to know
Termination of a Florida condominium is not a board decision — it is an owner decision requiring a supermajority vote (generally 80%) plus mortgagee consent. The board's role is to present the plan, facilitate the vote, and carry out the owners' direction. A board cannot unilaterally terminate the condominium or enter a sale agreement binding on all owners without going through the § 718.117 process.
The 80% threshold is a floor, not a ceiling. If the plan of termination cannot achieve 80% voluntary support — or if any first mortgagee objects — unanimous consent is required. In practice, most termination transactions are structured as developer buyouts where the developer or a joint venture partner secures agreements from unit owners individually, then presents the assembled package for the formal vote. Holdout owners have significant leverage in this dynamic.
Every unit owner who has not affirmatively voted for the plan is entitled to at least fair market value for their unit, as established by independent appraisal. The plan must include an appraisal, and any owner who disputes the appraised value can challenge it. Undisclosed encumbrances on individual units — old liens, judgment liens, IRS levies — become the unit owner's problem to clear before closing, not the association's.
Post-Surfside, the termination statute intersects with the SIRS and milestone inspection requirements. An association that receives a Phase 2 milestone inspection report indicating that the building requires substantial repairs may find that the cost of repairs — plus the newly mandatory SIRS reserves — makes collective sale more economically rational than continued operation. Understanding § 718.117 has become an essential part of SIRS-era planning for older Florida condominium boards.
Key requirements
Vote threshold for termination
§ 718.117(3)- Requires approval by at least 80% of total voting interests
- AND written consent of all first mortgagees of record
- If 80% cannot be achieved or mortgagees object: unanimous consent required
- Each unit owner who has not voted yes is entitled to fair market value
- Vote must be taken at a duly noticed meeting after 14-day plan distribution
Plan of termination contents
§ 718.117(3)(b)- Description of the condominium property
- Division of proceeds by percentage of ownership
- Independent appraisal of fair market value per unit
- Timeline for closing and disbursement
- Terms and conditions of any sale or conversion
Unit owner protections
§ 718.117(3)(d)–(e)- Dissenting owner entitled to at least fair market value (by independent appraisal)
- Owner may dispute appraisal valuation
- Mortgage and lien deficiencies resolved from unit's proceeds share
- 14-day notice of plan before vote
- Proceeds distributed in proportion to percentage of ownership
Effect of termination
§ 718.117(5)- Condominium regime dissolves upon recording of termination plan
- Association dissolves after satisfying or escrowing all debts
- Property converts to tenancy-in-common or is conveyed to buyer
- Recorded declaration of condominium is extinguished
Termination and the SIRS mandate
For older Florida condominiums facing substantial SIRS-required structural reserves, the financial analysis of repair-versus-sell has become critical. An association with a SIRS showing $10M in required repairs across 100 units — $100,000 per unit in reserves — may find that the cost of continued operation exceeds the building's market value. § 718.117 is the legal mechanism to act on that analysis. Boards evaluating distressed buildings should review the termination statute alongside the SIRS and milestone inspection reports.
Related tools
Common questions about § 718.117
- What vote is required to terminate a Florida condominium?
- Section 718.117(3) requires approval by at least 80% of the total voting interests in the condominium, AND all first mortgagees of record. However, if any unit owner objects and demands fair value for their unit, they must receive at least the fair market value determined by appraisal before termination proceeds. If the terminating plan cannot achieve 80% voluntary agreement — or if lienholders object — the threshold rises to 100% unanimous consent.
- When would a condominium be terminated under § 718.117?
- The most common scenarios driving termination are: (1) a developer or investor group wants to buy out the building and convert it to rental apartments or redevelop the land; (2) the building has deteriorated beyond the cost-effective point to repair and collective sale of the land is more valuable than continuing to operate; (3) a catastrophic event (hurricane, fire) renders the building uninhabitable and the association lacks sufficient insurance proceeds to rebuild. Age of the building stock and rising land values in coastal Florida markets have made terminations increasingly common since 2010.
- What must a plan of termination include under § 718.117?
- Section 718.117(3)(b) requires the plan of termination to include: (1) a description of the condominium property to be sold or distributed; (2) the proposed division of proceeds among unit owners (by percentage of ownership); (3) any proposed purchase of units from individual owners; (4) an independent appraisal of fair market value for each unit; (5) the terms and conditions of any sale; and (6) a timeline for closing and disbursement of proceeds. Each unit owner must receive notice and a copy of the plan at least 14 days before the meeting where it will be voted on.
- Can a minority of unit owners block a condominium termination?
- A single owner can demand fair value for their unit and prevent termination from proceeding on less-than-fair terms — but they cannot block termination outright if 80% of owners have approved it, provided fair market value is paid. If an owner believes the appraisal undervalues their unit, they can dispute the valuation and the association must resolve the dispute (sometimes through court action or a second appraisal process) before closing. In practice, objecting owners have significant leverage in negotiating above-floor settlements.
- How are termination proceeds distributed to unit owners?
- Under § 718.117(3)(e), termination proceeds are distributed in proportion to each unit's percentage of ownership in the common elements — the same percentage used to allocate common expenses. Any mortgage or lien on an individual unit is paid from that unit's share of the proceeds before the owner receives the remainder. If the unit is encumbered by a mortgage that exceeds the unit's share of proceeds, the plan must address how that deficiency is handled (typically the lender participates directly in the termination approval).
- Does termination of the condominium extinguish the association?
- Yes. Once the plan of termination is recorded and the property is conveyed (either sold or distributed as tenancy-in-common to the remaining owners), the condominium association dissolves. Prior to recording, the association must satisfy all debts and liabilities or escrow funds for their satisfaction. The recording of the termination plan and the deed conveying the property legally dissolves both the condominium regime and the association as a corporate entity.
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This is not legal advice. Consult association counsel for your specific situation. Termination of a condominium requires legal guidance — do not proceed without an attorney.