Condominiums, cooperatives and time-shares
Condominiums, cooperatives and time-shares are ways of owning or using part of a larger property. Florida regulates each in its own chapter of the statutes, and each chapter gives buyers a short window to back out of the contract.
Condominiums (Chapter 718)
Under Fla. Stat. 718.103(12), a condominium is a form of ownership of real property. The owner holds:
- a unit, the part of the property subject to exclusive ownership (718.103(31)); and
- an undivided share in the common elements, the parts of the property not in any unit, such as hallways, pools and grounds (718.103(9)).
The unit and its share of the common elements together form the condominium parcel (718.103(13)). The share of the common elements is appurtenant to the unit, so the two pass together. The owner gets a deed, can get a mortgage, and pays property taxes on the parcel.
Cancellation: buying from the developer
Under 718.503(1)(a)1, a contract to buy a unit from the developer is voidable by the buyer by written notice within 15 days after the buyer signs the contract and receives all the documents the developer must deliver. The buyer's right to void the contract ends at closing.
Cancellation: resales
When a unit owner other than the developer sells, the contract must include one of two clauses (718.503(2)(d)):
- the buyer acknowledges receiving the condominium documents more than 7 days, excluding Saturdays, Sundays and legal holidays, before signing; or
- the contract is voidable by the buyer by written notice within 7 days, excluding Saturdays, Sundays and legal holidays, after the buyer signs and receives the documents, if the buyer asked for them in writing.
Any purported waiver of this right has no effect, and it ends at closing.
Cooperatives (Chapter 719)
In a cooperative, legal title to the whole property is held by a corporation or other entity, the association (719.103(12)). A buyer does not get a deed to a unit. Instead, the unit owner holds a share in the cooperative association plus a lease or other right to occupy a unit (719.103(27)). Because the owner holds shares and a lease rather than a deed, a co-op interest has traditionally been treated as personal property.
The cancellation rules mirror the condominium rules:
| Sale | Buyer's right | Source |
|---|---|---|
| From the developer | Void within 15 days after signing and receiving all required items; ends at closing | 719.503(1)(a)1 |
| Resale | Void within 7 days, excluding Saturdays, Sundays and legal holidays, unless the buyer got the documents more than 7 such days before signing | 719.503(2)(c) |
Time-shares (Chapter 721)
A time-share gives the right to use accommodations for a set period, such as one week a year. Florida recognizes two main kinds:
| Type | What the buyer gets | Source |
|---|---|---|
| Timeshare estate | A right to occupy coupled with a freehold estate or an estate for years. It is a parcel of real property. | 721.05(34) |
| Timeshare license | A right to occupy that is not a timeshare estate (or a personal property timeshare interest). No real property interest. | 721.05(37) |
Cancellation
Under 721.10(1), a purchaser may cancel the contract until midnight of the 10th calendar day after the later of:
- the date the contract is signed; or
- the day the purchaser receives the last of the required documents.
Under 721.10(2), this right cannot be waived, and no one may ask the purchaser to waive it.
Comparing the three
| Condominium | Cooperative | Time-share | |
|---|---|---|---|
| Buyer receives | Deed to unit plus share of common elements | Shares plus lease | Estate or license for a time period |
| Developer sale cancellation | 15 days | 15 days | 10 calendar days |
| Resale cancellation | 7 days, excluding weekends and legal holidays | 7 days, excluding weekends and legal holidays | Not covered here |