Buying a Condo in Sunny Isles Beach: What to Know

Before you offer on a condo in Sunny Isles Beach, confirm four things: whether the association must approve you as a buyer, what the building's structural inspection and reserve documents say, whether any special assessments are approved or planned, and what the rental and insurance rules are. Every building sets its own rules in its governing documents, so two towers a few blocks apart can differ a great deal. This is general information, not legal advice, and a Florida real estate attorney should review the documents before you commit.

The city and its buildings

Sunny Isles Beach sits on a barrier island in northeast Miami-Dade County, between the Atlantic Ocean and the Intracoastal Waterway. Collins Avenue, also State Road A1A, is its main road, and high-rise condominiums and hotels now line much of the beachfront. Buildings differ in age, size, amenities and management, which is why due diligence happens building by building. For the wider picture, see the Sunny Isles Beach area guide.

Association approval: what to expect

Many condominium declarations require the board to approve a new owner, and the process often includes an application, a background or credit review and sometimes an interview. Florida Statutes 718.112 says that when a fee is charged for approving a transfer, it may not exceed $150 per applicant, with spouses or parents and dependent children counted as one applicant, though you should confirm the current figure with your attorney.

Ask these questions before you write an offer:

• Does the declaration require approval of buyers, and how long does the association have to respond?
• Does the association hold a right of first refusal?
• What will your contract say if approval is denied or delayed?
• Are there move-in fees, deposits or elevator reservation rules?

Florida law also gives an owner or an owner's designee the right to request an estoppel certificate, a statement of what the association says is owed on the unit. The association must issue it within 10 business days of a written or electronic request, and the law caps the fees (Florida Statutes 718.116).

Documents to request before you offer

Florida Statutes 718.503 requires resale contracts to include language about the milestone inspection summary and reserve study, and our guide to Florida's condo safety laws explains your timing rights in detail.

Reserves and special assessments

A special assessment is a charge approved under the condominium documents, and Florida law requires written notice to every owner that states its purpose. A new owner is jointly and severally liable with the previous owner for assessments that came due before title transferred (Florida Statutes 718.116), so ask the association about balances and close with a title agent who verifies them.

Ask whether any assessment has been approved, proposed or discussed, what it pays for, how much remains and how it will be collected. A thin reserve balance next to a long list of repairs is worth weighing, and your attorney can help you read it.

Inspections and recertification in Sunny Isles Beach

The City of Sunny Isles Beach describes a building recertification program: properties are recertified at 30 years and every 10 years after, and condominium buildings three stories or taller, within three miles of the coastline and built on or after 1998 are described as needing a recertification inspection at 25 years. State milestone inspection rules also apply to condominiums, and because rules and schedules change, you should ask the association which schedule applies to your building and where it stands.

Insurance and financing

Your unit policy and the association's master policy cover different things, and the documents decide where the line falls. Florida Statutes 627.714 requires unit owner policies to include at least $2,000 in loss assessment coverage, which you can ask to increase. Talk to an insurance agent about wind, flood and your belongings.

Lenders also review the building. Fannie Mae's Selling Guide lists projects as ineligible when, among other things, there are unfunded critical repairs costing more than $10,000 per unit that should be done within the next 12 months, and a building that doesn't meet agency standards can limit your financing and later resale. Ask your lender to review the project early.

Rental rules vary by building

If you might rent the unit, now or later, get the rental rules in writing, because documents can set minimum lease terms, require tenant approval or limit rentals. Florida Statutes 718.110 says an amendment that restricts rentals applies only to owners who consent and owners who acquire title after the amendment takes effect. That means a rule that exists today may not bind an existing owner but may bind you. This is not investment advice.

A simple due diligence timeline

• Before you offer. Ask for the declaration, rules, budget and the milestone inspection summary and reserve study. Confirm the approval process and rental rules.
• When your contract is signed. Calendar your document review and any cancellation rights with your attorney. Order insurance quotes and ask your lender to review the building.
• Before closing. Confirm the estoppel certificate, any assessments and the association's approval, and review your closing figures with the title agent.

Listings in Sunny Isles Beach

Jessica's listings with The Bograd Team have included a residence at Parque Towers and a lease at the Residences by Armani/Casa. Availability and prices change, so check with Jessica for current details. If you are comparing condos with houses, read our condo versus single-family cost comparison.

Talk to Jessica

Jessica Sonino is a South Florida Realtor with The Bograd Team. If you are weighing a condo in Sunny Isles Beach, contact Jessica to talk through the buildings you like and the documents to request. You can also see how Jessica works with buyers on the buy page.