It is possible for a condo association to be involved in a lawsuit. Lawsuits can increase an association's expenses above its budget and lead to a special assessment or higher assessment in future budget cycles.
Some condo buyers wish they had better understood whether litigation was ongoing before before making an offer to buy a condo.
The laws on seller disclosures can seem complicated to many prospective condo purchasers. Florida Statutes cover disclosure requirements for developers and again for non-developers. The article "Mandatory Frequently Asked Question & Answer Sheets" provides details on some of the disclosure related statutes.
The Frequently Asked Questions and Answers (FAQ) document can follow the form made available by the Department of Business and Professional Regulation.
One of the questions that appears on that form is: "Is the condominium association or other mandatory membership association involved in any court cases in which it may face liability in excess of $100,000? If so, identify each such case."
Some condo buyers wish they had read an association's Frequently Asked Question & Answer Sheet before making an offer to buy a condo. Some condo buyers wish they had better researched all possible association litigation before making an offer to buy a condo.
Prospective Florida condo buyers should, if they don't understand condo litigation issues, engage licensed and reputable attorneys and advisors to guide their buying decision.