FAQs

Communities with homeowners associations often have master property or hazard insurance that covers common area structures and exterior building elements. Homeowners may opt in to covering personal property, interior improvements and personal liability. It is important to review association documents to understand both association and individual coverage responsibilities.

Hurricane season runs from June 1 to November 30. Many carriers review and adjust coverage and pricing based on market conditions before hurricane season. Buyers planning a summer closing should coordinate with their insurance agent early to secure adequate windstorm and flood coverage and to understand any timing limitations on policy effective dates.

A Structural Integrity Reserve Study is a detailed financial and engineering review that identifies major building components, estimates their remaining useful life, and calculates the funds required to repair or replace those components. The study helps associations plan for long term maintenance and avoid deferred structural repairs.

A Milestone Inspection is a state required structural evaluation of certain condominium and cooperative buildings in Florida. It applies to buildings that are three stories or higher and are thirty years old, or twenty five years old if located within three miles of the coastline. The inspection evaluates the structural components of the building to determine whether they are safe and structurally sound.

Buyers should request:

• The most recent Milestone Inspection report

• The Structural Integrity Reserve Study

• Current reserve balances

• Any approved or proposed special assessments

• Board meeting minutes discussing structural repairs or funding plans

Reviewing these documents with legal and financial advisors is strongly recommended.

Even within the same area, property taxes can vary due to differences in assessed values, building age, amenities, renovation history, views, square footage, and prior sales prices. Two condominiums across the street from one another may have different tax obligations based on how each unit is valued by the county.

Florida’s homestead exemption can reduce the taxable value of a primary residence by up to fifty thousand dollars and may limit annual assessment increases through the Save Our Homes cap. This benefit applies only to owners who declare the property as their primary residence. Second homes and investment properties do not qualify.

Buyers throughout Collier County should plan for closing costs that typically range from approximately 1.5 percent to 3 percent of the purchase price, depending on whether the transaction is financed or cash. Common buyer expenses include lender fees if financing, appraisal and inspection costs, recording fees, prepaid property taxes, prepaid homeowners insurance, and escrow reserves.

In Collier County, it is customary for the seller to pay for the owner’s title insurance policy and documentary stamp tax on the deed, while buyers are responsible for mortgage related documentary stamp taxes if financing. Property taxes are prorated at closing to reflect each party’s period of ownership during the calendar year.

Condominium purchases in Park Shore and similar coastal communities may also include association specific costs such as application fees, estoppel fees, transfer fees, capital contribution fees, and prorated association dues. Each building may have different requirements, making document review during the due diligence period essential.

Our Beachfront Team maintains close relationships with title professionals, lenders, attorneys, and association managers to ensure buyers understand the financial structure of the transaction and any building specific obligations prior to closing.