Lenders underwrite the building, not just the unit

For a condo, a mortgage lender examines the association: reserve funding, the share of owners delinquent on dues, the proportion of units that are rentals or investor-owned, insurance coverage, and any litigation. Buildings that fail this project review are ineligible for conventional or FHA financing, which means the only buyers left are paying cash.

Since the 2021 Surfside collapse, lenders have also asked directly about deferred maintenance and structural repair needs, and a building with an unfunded major repair can be declared ineligible. Florida added statutory milestone inspections and structural integrity reserve studies, which surfaced repair costs in many older coastal buildings and produced special assessments.

The situations we buy in

  • Buildings with a levied or pending special assessment
  • Associations with low reserves, high delinquency, or no reserve study
  • Buildings with pending or threatened litigation
  • Units in buildings that failed lender project review
  • Associations with rental caps, minimum lease terms, or a right of first refusal
  • Buildings that require the association to approve the buyer
  • Units with original kitchens, baths, HVAC, and flooring
  • Units with water intrusion, plumbing stack problems, or balcony repairs pending
  • Inherited units and long-held investment units

Assessments and balances are handled at closing

An unpaid assessment balance, fines, or an association lien does not prevent a sale. The closing agent orders an estoppel letter or resale certificate showing exactly what is owed, and the total is paid from the seller's proceeds. Future special assessment installments are allocated by the contract, which is a point to discuss openly rather than assume.

What genuinely affects timing is how fast the association responds. An estoppel or resale certificate is the single most common reason a condo closing slips, so requesting it early is worth doing.

Buyer approval and the closing date

Many associations, particularly in Florida, have the right to approve a purchaser and may require an application, interview, or screening fee. That process takes time and cannot be skipped. We build it into the closing date rather than treating it as a surprise.

Where an association holds a right of first refusal, it must be waived or allowed to expire before closing. Again, that is a scheduling item, not an obstacle.

Frequently asked questions

Will you buy a condo with a special assessment?

Yes. Share the assessment schedule, the reserve study, and any inspection reports, and we will account for them in the offer.

My building failed lender project review. Can I still sell?

Yes, to a cash buyer. That situation is exactly why condo cash sales exist.

What about unpaid HOA dues?

The balance appears on the estoppel or resale certificate and is paid from your closing proceeds.

Does the association have to approve you?

Where the documents require it, yes, and we plan the closing date around the association's process.

Do you buy units in older coastal buildings?

Yes, including buildings with milestone inspection findings or pending structural repairs.