Buying a condo in Miami involves more than a mortgage and a closing date. The building's finances, its rules and its approval process all matter. This guide walks through each step so nothing surprises you.
What makes buying a condo different
With a condo you are buying into an association as well as a unit. Lenders review the building, the association may need to approve you, and the building's reserves and inspections affect what you will pay after closing.
Step 1: Get pre-approved for a condo loan
Lenders look at the building as closely as your finances. They typically check:
- How many units are owner-occupied.
- Whether the association's reserves are adequate.
- Whether the building is approved for FHA or VA financing, if you plan to use one.
- Any litigation involving the association.
Getting pre-approved early tells you which buildings you can finance before you spend time touring ones you cannot.
Step 2: Understand fees, rules and reserves
Monthly association fees vary widely by building and cover things like insurance, maintenance, amenities and reserves. Ask for the association documents and review them, ideally with an attorney. Look for:
- The monthly fee and what it includes.
- Special assessments that are planned or underway.
- Rules on pets, rentals and renovations.
- The reserve fund balance and the most recent budget.
Step 3: Check inspections and reserve studies
After the 2021 Surfside collapse, Florida began requiring milestone structural inspections and structural integrity reserve studies for many condo buildings three stories or taller. Ask for the building's latest milestone inspection report and reserve study. A building that needs major repairs or has underfunded reserves may raise fees or levy special assessments after you buy.
Step 4: Make an offer and get association approval
Once your offer is accepted, many associations require their own application, and some interview buyers or run background and credit checks. This is separate from your mortgage approval, so allow a few extra weeks for it.
Step 5: Close
With the inspection period cleared and association approval in hand, you move to closing. Closing costs in Florida commonly run 2% to 5% of the price. After closing, set up your association payments and register with the building.
Frequently asked questions
Is buying a condo in Miami different from buying a house?
Yes. A condo purchase adds the association: its fees, rules, reserves and inspections, lender review of the building, and often an association approval process before closing.
What documents should I ask for when buying a Miami condo?
The declaration and bylaws, the current budget and reserve statement, recent meeting minutes, the latest milestone inspection report and structural integrity reserve study, and notice of any planned special assessments.
General information, not legal, tax or financial advice. Confirm details with your agent, lender, attorney or insurer.