Are you comparing condos in West Palm Beach and wondering why fees can vary so much from building to building? You are not alone. Understanding the difference between regular condo fees and one-time special assessments can help you budget with confidence and avoid costly surprises. In this guide, you will learn what each cost covers, how approvals work under Florida law, how lenders view them, key local risk factors, and a practical checklist you can use before you buy. Let’s dive in.
Condo fees vs special assessments
Regular condo fees are the recurring charges you pay to the association. They fund the building’s day-to-day operations and planned reserves. Special assessments are one-time or short-term charges used for big projects or unexpected costs that the regular budget cannot cover.
What condo fees usually cover
- Maintenance for common areas and building systems (landscaping, hallways, elevators, roofs where applicable)
- Utilities for common spaces (lighting, pools)
- Staff and property management
- Master insurance at the association level, plus trash and security
- Reserve contributions for future capital work
- Amenities such as a gym, pool, or lobby services
What special assessments usually cover
- Major repairs or replacements (roofs, concrete restoration, elevator upgrades, parking garages)
- Unexpected events or large insurance deductibles after a storm
- Code or safety upgrades required by regulators
- Occasional operating shortfalls when reserves are low
In short, condo fees are predictable and planned. Special assessments are episodic and can be large.
Who approves these costs in Florida
Florida condominiums are governed by the Florida Condominium Act, known as Chapter 718. The statute and each community’s declaration and bylaws set the rules for budgets, reserves, owner voting, disclosures, and collections. You can review the statute by searching Chapter 718 on the State of Florida’s statutes site. For consumer guidance, visit the DBPR condominium information page.
Regular fees and annual budgets
- The association’s board prepares and adopts an annual budget.
- That budget sets the periodic assessments you pay.
- The declaration and bylaws may give owners certain voting or notice rights during budget adoption, but in most communities the board sets the regular dues.
Special assessments and voting
- The authority to levy a special assessment comes from the governing documents and Chapter 718.
- Boards often can approve smaller assessments without a full owner vote. Larger assessments may require owner approval at a specified percentage.
- Emergency assessments can have expedited procedures when needed to prevent harm or further damage.
Reserves and owner waivers
- Associations maintain reserves for long-term items like roofs, elevators, painting, and concrete.
- In some associations, owners can vote to waive or reduce reserve funding for a year. This may lower dues in the short term but increases the risk of future special assessments.
Your rights as a condo buyer in Florida
Under Florida law and DBPR guidance, buyers are entitled to receive association documents on resale. These typically include the budget, financial statements, information on reserves, recent meeting minutes, insurance summaries, and any notices of pending special assessments or litigation. There are timelines for delivery and review. Learn more on the DBPR condominium guidance page.
If a special assessment is approved after you sign a contract, responsibility for payment depends on your contract terms and timing. Your agent can help you review disclosures and clarify who pays what before closing.
How lenders view fees and assessments
Mortgage lenders look at both your monthly costs and the condo association’s financial health. Regular fees are part of your monthly housing cost and are included in your lender’s affordability review. Special assessments can impact financing if they are large, frequent, or still unpaid.
Many loan programs require a review of the condominium project. Lenders often request budgets, reserve information, minutes, and details on any special assessments or litigation. If reserves are low or assessments are significant, a lender may require a larger down payment, delay approval, or decline the project. You can explore general condo financing criteria in HUD condominium guidance and in agency project reviews such as Fannie Mae’s condominium project requirements.
Tip: Ask your lender early if the building is financeable and whether pending assessments could affect your loan.
West Palm Beach cost drivers to watch
Living on or near the water is a major perk of West Palm Beach, but coastal life comes with unique building needs. These local factors can lead to higher fees or special assessments over time:
- Hurricanes and wind events that raise insurance deductibles or trigger repairs
- Flood exposure for waterfront or low-lying buildings, which can influence flood insurance and mitigation projects
- Salt air corrosion that accelerates wear on metal, concrete, and mechanical systems
- Aging high-rise systems like elevators, HVAC, plumbing risers, and parking structures
- Building envelope projects such as waterproofing, window replacement, and balcony remediation
- Safety inspections that uncover deferred maintenance
You can check flood zone details for a specific address using the FEMA Flood Map Service Center. For recorded condo documents, permits, and public records, use Palm Beach County’s official resources.
Budgeting smart: total monthly cost
Your true monthly housing number should include more than your mortgage. Add up mortgage principal and interest, property taxes, regular condo fees, homeowner’s insurance, any unit-level flood insurance if required, and an allowance for utilities and routine maintenance.
Special assessments are not a monthly cost, but they can be large when they occur. Ask the right questions up front so you can compare buildings fairly and protect your budget.
Due-diligence checklist for West Palm Beach buyers
Use this checklist during your inspection and association review period. Copy and save it for your condo tours.
Documents to request
- Current year budget and most recent financial statements
- Reserve study or statement of reserves with current balances
- Board meeting minutes from the last 12 to 24 months
- History of special assessments for the last 5 to 10 years with payment terms
- Declaration, bylaws, articles, and rules
- Master insurance certificate, including hurricane/wind deductibles and whether flood insurance is held by the association or unit owners
- List of any pending litigation and associated details
- Schedule of monthly assessments per unit and what they include (water, cable, internet, insurance)
- Owner delinquency rate and current accounts receivable
- Occupancy and rental percentages plus any rental restrictions
- Any structural or inspection reports, plus recent permits or notices
Questions to ask the association
- What exactly does the monthly fee cover, line by line?
- What is the reserve balance, and when was the last reserve study?
- Have owners waived or reduced reserves recently?
- What special assessments were levied in the last 5 to 10 years, and why? Were payments lump sum or installments?
- Are any assessments proposed or likely in the next 12 to 36 months? Estimated amount and timing per unit?
- Any pending or threatened lawsuits, and what is the estimated exposure?
- What is the hurricane/wind deductible on the master policy, and how is it funded if a loss occurs?
- Is flood insurance required at the unit level, and what are current premiums?
- What percentage of owners are delinquent on assessments, and what collection actions are underway?
- What percentage of units are rented, and what are the rental rules?
- What major repairs were completed recently and how were they funded?
- What capital projects are planned for the next 5 to 10 years, with timelines and funding plans?
Contract and closing tips
- Include an association document contingency with enough time to review and ask follow-up questions.
- Clarify in the contract who pays any assessments approved after contract signing and before closing.
- Confirm with your lender whether any assessment must be paid at or before closing.
- Consider consulting a Florida real estate attorney if you find large assessments or complex litigation.
What happens if assessments go unpaid
Associations can place liens and pursue collection for unpaid regular assessments or special assessments. During closing, the title company and lender will check for association liens. Clearing issues before closing helps prevent delays.
The bottom line for West Palm Beach
Condo fees keep your building running and plan for the future. Special assessments fill gaps that budgets and reserves cannot. In West Palm Beach, coastal conditions and aging systems make careful document review essential.
If you want a second set of eyes on building financials or guidance on financing and contract strategy, reach out to Isaias Franco for local, bilingual expertise and a calm, step-by-step approach.
FAQs
What is the main difference between condo fees and special assessments?
- Condo fees are recurring and planned in the annual budget, while special assessments are one-time or short-term charges for large projects or unexpected costs.
How are special assessments approved in Florida condos?
- Your condo’s declaration and Chapter 718 set the rules; boards may approve smaller assessments, while larger ones often require an owner vote based on the governing documents.
Will a special assessment affect my mortgage approval?
- It can. Lenders review project finances and may require a larger down payment, delay, or deny loans if assessments are large, frequent, or reserves are low.
What West Palm Beach factors increase the risk of assessments?
- Hurricanes, flood exposure, salt air corrosion, aging high-rise systems, building envelope projects, and safety inspections can all drive large capital costs.
What documents should I review before buying a condo?
- Ask for the budget, financials, reserve study, minutes, insurance details, litigation list, assessment history, delinquency data, and any inspection or permit records.
