Are you hearing more about surprise condo fees on Marco Island and wondering what they mean for your purchase? You are not alone. Special assessments can affect your budget, financing, and peace of mind, especially if you are a seasonal or second‑home buyer. In this guide, you will learn what assessments are, why island condos face higher risk, which documents to review, and how to protect your purchase before closing. Let’s dive in.
Special assessments explained
A special assessment is a one-time or limited-term charge the condo association levies to pay for expenses not covered by regular monthly fees. Associations use them for major repairs, emergency fixes, large insurance deductibles after a storm, or legal costs.
How much each owner pays depends on the condo’s governing documents. Many buildings allocate costs by ownership percentage, while some split assessments equally per unit. The declaration and bylaws set the rules for how assessments are approved, notice periods, and voting thresholds under Florida’s Condominium Act. You can review the legal framework in the Florida Condominium Act, Chapter 718.
Common types you may see
- Planned capital projects: roof replacements, exterior painting and waterproofing, concrete or balcony repairs, window or glazing upgrades, seawalls, or parking garage work.
- Emergency assessments: urgent structural or code repairs, storm damage, or building system failures.
- Insurance deductible allocation: after a covered loss, associations may allocate a large hurricane or windstorm deductible to owners.
- Litigation costs: funding legal action or settlement obligations affecting the association.
Why Marco Island condos face higher risk
Marco Island is a barrier island facing salt air, wind, flooding, and storm surge. That exposure speeds corrosion and wear, which leads to larger projects over time. Many buildings are decades old, which increases the likelihood of repairs to roofs, balconies, façades, and garages.
Post-Surfside changes in Florida law and rules overseen by the Florida DBPR Division of Condominiums now require periodic structural inspections and related compliance. If inspections identify deficiencies, associations may need to fund improvements on short timelines.
Insurance market conditions also matter. Premiums and deductibles for coastal properties have trended higher statewide. The Florida Office of Insurance Regulation tracks these market shifts, and associations often pass cost increases through budgets or special assessments. Flood exposure adds another layer. You can verify flood zones using the FEMA Flood Map Service Center.
How assessments are approved and collected
Approval procedures come from your building’s declaration and bylaws, combined with Florida law. Some assessments require only a board vote, while others require owner approval at a specific threshold. Associations must follow notice and meeting requirements under Chapter 718.
Once levied, assessments are due according to the schedule set by the association. Associations can place a lien for unpaid assessments, pursue collections, and, if nonpayment continues, may foreclose. Before closing, an estoppel certificate from the association confirms outstanding and approved assessments as of a certain date.
The buyer’s document checklist
Request these items early in your inspection period. They will help you gauge assessment risk and overall building health.
- Condominium declaration and plats
- Bylaws and rules and regulations
- Current budget and last year’s budget
- Most recent reserve study and current reserve account balances
- Board meeting minutes for the past 12 to 24 months
- Insurance certificate and policy declarations with hurricane and flood details
- Estoppel certificate showing outstanding or approved assessments
- Litigation disclosures
- Recent audited financial statements and reserve bank statements
- Contractor bids, scopes, and engineering reports for any approved projects
For official guidance on reserves, estoppels, and building compliance, use the DBPR Division of Condominiums. To confirm building age and history, search the Collier County Property Appraiser. For permits and inspections on structural or coastal work, check the Collier County Building Review and Inspections portal.
How to read what you get
- Reserve study vs. cash on hand: If reserves are far below recommended levels, future projects are more likely to be funded by special assessments or loans.
- Minutes and bids: Repeated mentions of deferred maintenance, contractor disputes, or multi-year projects without clear funding are red flags.
- Insurance declarations: Look closely at hurricane and wind deductibles. Large percentage or flat deductibles can translate into sizable per-unit charges after a loss.
- Estoppel certificate: Confirm whether any assessments have been approved but not fully billed, and the exact payment schedule.
- Litigation: Active lawsuits around structural issues, code violations, or contractor claims can lead to additional costs.
Red flags that merit follow-up
- Low reserves compared to the reserve study
- A history of repeated special assessments
- High delinquency rates for monthly fees
- Budget deficits over multiple years
- Major projects approved without a funding plan
- Significant insurance changes or non-renewals
Questions to ask the association and manager
Come prepared with direct questions so you can move quickly during your contingency period.
Operations and finances
- What are current reserve balances versus the latest reserve study’s recommendations?
- Has a special assessment been proposed or approved? What is the total cost and per-unit share?
- Are there any assessments that are approved but not yet billed or collected?
- What is the current delinquency rate? Any units in foreclosure?
- What is the capital plan for the next 1 to 5 years, and do you have recent engineering reports or bids?
Insurance and claims
- What does the master policy cover, and what is the wind or hurricane deductible? How is it allocated to owners?
- Have there been insurance claims in the past 5 to 10 years? What were the outcomes?
- Is a flood policy in place for common areas and required for the building?
Inspections and compliance
- Have all mandatory structural inspections been completed? Are there outstanding deficiencies?
- Are there any open code citations or ongoing engineering reviews?
Governance and process
- What vote threshold is required to approve a special assessment?
- Are there any ongoing or threatened lawsuits?
- Does the association have a loan or line of credit for large projects, and what are the terms?
Practical logistics for seasonal owners
- Who is the 24/7 point of contact for urgent issues if you are out of state?
- What are the current rental rules if you plan to rent seasonally?
- How often have assessments occurred historically for this building?
Financing, closing, and your budget
Lenders evaluate condo project health. Large pending assessments, low reserves, or high delinquencies can affect loan approval. Some lenders require any assessment to be paid at or before closing, or they may set up an escrow. Discuss the building’s financials with your lender early.
The estoppel certificate provides a snapshot for closing, but timing matters. If an association approves a new assessment after the estoppel date but before closing, you could be affected. Ask your agent and attorney about contract language that requires disclosure of new assessments or provides options if material changes occur.
Budget for the island’s realities. Many buyers maintain a separate contingency fund for unexpected assessments or insurance changes. Ask whether the association allows installment plans for large assessments and whether it intends to borrow for major projects. Financing a project through an association loan spreads costs over time but may increase monthly fees and add debt at the association level.
On insurance, get early quotes for your unit’s interior policy and any required flood coverage, and confirm how the master policy coordinates with unit-owner responsibilities. The Florida Office of Insurance Regulation and FEMA’s Flood Map Service Center are helpful reference points as you plan.
Timing tips for seasonal closings
- Align your inspection period with the association’s meeting calendar. A board meeting can change project timing and assessments.
- Ask for the last 24 months of board minutes and the latest engineering reports before you finalize terms.
- Confirm any upcoming recertification or structural inspection deadlines and whether corrective work is scheduled and funded.
- If closing near the end of hurricane season, clarify how post-storm repairs and deductibles would be handled.
Marco Island’s big-ticket projects to watch
On the island, the following items commonly drive large assessments:
- Balconies and concrete spalling repairs
- Exterior painting and waterproofing
- Roof replacement and drainage upgrades
- Window and impact glazing improvements
- Parking garage and structural repairs
- Seawall repair or full replacement and shoreline work
Ask for scopes of work and bids for any approved projects, then verify funding sources in the budget, reserves, or loan documents.
Your next step
Buying a condo on Marco Island should feel exciting, not uncertain. With the right documents, smart questions, and clear budget planning, you can move forward with confidence. If you want local insight on specific buildings, help coordinating document requests, and introductions to lenders and insurance resources familiar with island condos, connect with Chad Phipps for a friendly, no-pressure consultation.
FAQs
What is a condo special assessment on Marco Island?
- It is a one-time or limited-term charge from the association to fund expenses not covered by monthly fees, such as major repairs, emergencies, or insurance deductibles.
How do I know if a board can levy an assessment?
- The authority and voting thresholds are in the declaration and bylaws, with procedures guided by Florida’s Chapter 718; review recent minutes and request an estoppel for current items.
Can the association require immediate payment?
- Yes. Under governing documents and state law, associations can levy and collect assessments, and unpaid amounts can result in liens and potential foreclosure.
Are reserves required by Florida law?
- Florida law and DBPR guidance govern budgeting and reserves, and many associations adopt reserve policies; whether reserves can be reduced or waived depends on current statutes and the association’s documents.
Can a big pending assessment derail my financing?
- It can. Lenders review project health, and a large assessment may need to be paid at closing or documented in loan conditions, so check with your lender early.
What documents should I request before I buy?
- Ask for the declaration, bylaws, budgets, reserve study and balances, 12 to 24 months of minutes, insurance declarations, estoppel certificate, litigation disclosures, and recent financials.
Where can I confirm flood risk for a building?
- Use the FEMA Flood Map Service Center to check flood zones and consider how flood requirements may affect insurance and costs.
